They will spend. In my area the bidding wars for houses exceed 100,000.00 over asking price. Inventory is low and some don't want to wait 6 months to a year to have one built.
As said above, u are in the catbird seat.
You got the juice now.
I bought a house in December of 2020.
As of now roughly 8 months later, I could sell for 100k more than I paid and get it.
....and probably a little more if a bidding war started. You know people are chomping at the bit when they offer more with no inspection. It's happening a lot lately. I follow the housing market all the time .
Take this for what it's worth, because I have close to zero experience in this, but yes, I think it is a process to get to the 'right price', because I don't think in this situation there is a clear one.You might have a point, but I just need these wise guys, to get a clue.
The smartest move will be to hold out, until they say, pick your price. I probably would of never put my home up for sale, if the gang of realtors weren't bombarding me with all the door knocking the last two years.
Then I list the home for sale, and they low ball me. I shouldn't complain, because this is a good problem to have I suppose. Maybe this is all part of the process, to figure out what the right price is?!?!
Take this for what it's worth, because I have close to zero experience in this, but yes, I think it is a process to get to the 'right price', because I don't think in this situation there is a clear one.
Normally, if the price was too high, someone could go and buy another similar property instead, so there's a fairly clear indicator of what that price can be. But here, they don't need a similar property, they need that property.
So they obviously want to pay as little as possible, and will probably point to the market prices of similar properties, but the real minimum is whatever you say it is.
The theoretical maximum is whatever would make their investment/project unviable, or unattractive compared to other opportunities, but in practice I'd guess it might also be constrained by a reluctance to set a precedent of (from their perspective) overpaying. But there's a maximum they'd be willing to pay there, it's just a case of getting them to it.
I'd think the advice of working out your top price, based on replacement value, etc., and making it clear what that is, is probably the best way of getting there. If you want someone to do something, make it the easiest thing for them to do. They're not going to make a good offer if they think you might eventually accept a lowball offer. So if you can make it clear that you won't, and that your price is that price, the easiest thing for them to do becomes to make you that offer.
But again, I know nothing.
I'm basically gonna ask for a house and a small 401k savings, because I always cashed out my 401k every time I quit my job. So, there are basically giving me a catch up contribution....A rather large one.. haha
I have no intentions of moving. If someone offered me "market price" for my home I would laugh at them. Why would I sell my home for market price and then go buy another one at market price. This doesn't improve your situation at all. Except now you must find a new home (in a very tight market), move, pay for appraisals, lending fees etc. You need to put a price tag on all that extra work that you will have to deal with. It depends of the value of the home. Personally, my asking price would be double the homes value and maybe negotiate down a little.
People buy property for a few reasons.
The biggest one is return on investment.
If the shoe was on the other foot, they would ask top dollar from you . There are no friendships when negotiating real estate. Agents right now are working 7 days a week....why?....MONEY!
Never settle, you will always regret it