Foreclosure in Raleigh>Question Details

Heather, Both Buyer and Seller in 60103

Should I lower the asking price on my townhouse?

Asked by Heather, 60103 Mon Nov 26, 2007

We live in Illinois. It is very difficult to remain hopeful that it will sell.

Realtor.com Listing #957805

http://homes.realtor.com/realestate/raleigh-nc-27610-1089335818/

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Answers

12
Heather,

Good job. However, I am not sure you should be using "homes" to determine DOM when u r selling a townhome. Here in NJ, we comp townhomes v. townhomes and homes v. homes.

As a seller you always have the final decision on whether to reduce or not. There is always a time/price correlation involved in that decision (i.e., can hold without a significant loss or should I sell now ) Some people think holding out for the better price is best; however, if you are holding a mortgage you must factor in the monthly expense to carry this property and weigh it against any potential gain b/t selling now or later.

Here are some add'l thoughts when considering a price improvement.

(1) What is the price of the new townhomes v. your complex

(2) What are the taxes on the new townhomes v. your complex

(3) What is the monthy maintenance on the new townhomes v. your complex

Put yourself in the buyers shoes, if you can buy a "new" townhome for the same price and monthly expense, which would you choose?

Keep me posted. Feel free to contact me offline @ openingdoors@comcast.net. THIS IS NOT A SOLICITATION, I do not do business in IL nor do I know of anyone who does.

Francesca
1 vote Thank Flag Link Sat Dec 1, 2007
Heather,

While I can't comment on your particular market (because each market even down to specific neighborhoods dffers in activity) I would say 11 showings in 60 days is not that bad considering we are at the cyclical downswing of the real estate season. The feedback is pretty common with condos. Some of my colleagues might disagree, but if u are not in a hurry, I'd wait it out.

I would say your biggest challenge is those "new" condos. Have u compared the taxes and monthly maintenance. If it is somewhat lower, then this should be a plus. If they are comparable, you have some tough competition and should expect longer days on market.

Since you seem top have decent activity, your next step would be to have your realtor show you the sold comparable units in the past 6 months. If they are significantly lower, then a price improvement may be imminent; however, if they are close to your current price, there is no need to lower.

P.S. I also noticed that your agent has two listings 2225 Violet Bluff and 2205 Violet Bluff, both of which appear to be the same set of pics? Your unit? One is priced @ $95 the other $100??

Hope this helps!
1 vote Thank Flag Link Mon Nov 26, 2007
I agree w/Jonathan. In addition, ask:

(1) How many showings this property has received
(2) What the feedback is from the agents
(3) What the feedback is from the prospects

You may want to consider staging the unit since it appears from the Realtor.com pics that it is vacant.

Good Luck!
1 vote Thank Flag Link Mon Nov 26, 2007
Heather - This is across the board right now with townhomes in the Raleigh area. The catch is the buyer wants to "get a deal" with all of the media hype buyers are looking for the best value. I would personally recommend you sitting down and crunching some numbers to see what works for you. The other catch is foreclosure just went pending in your neighborhood for $84,500.
0 votes Thank Flag Link Thu Dec 20, 2007
I figured out DOM and I've emailed my agent about strategy. I hope to hear something in the next few days.

Thanks for all your responses!
0 votes Thank Flag Link Sat Dec 1, 2007
Median price for comps, including newer homes, is 107K, excluding its 101K. Most recent was 97,500.

The photos really are different. It's subtle, but different. 2225 has the fireplace on the opposite side of the room, the sink and dishwasher are shifted slightly, backyard is fenced in. And we have a built-in microwave to save counter space.

It's been a fairly active area. Ten homes/townhomes in the vicinity sold in October, about eight in September. More current information should be available through our agent.

I still have to call our agent to ask about the websites.

What is DOM?
0 votes Thank Flag Link Sat Dec 1, 2007
Heather,
Any home will sell for right price. If other homes, like yours, have sold since your home came on the market, then you should review them with you Realtor.

Buyers want value. The easiest way to add value is to lower the price. Offering a buy-down program would instantly make your home more affordable.
0 votes Thank Flag Link Tue Nov 27, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Heather, it seems from the feedback you posted that there are/were a lot of different units to choose from. It's very difficult with condos/townhomes, because people have a hierarchy of "needs", it seems, at least in my experience: end unit, upper unit, corner unit, outside unit.... there's a lot for sale these days and with these types of properties, especially when there are, say, 5 middle units for sale, it's really either price or location. You can't change the location, but as long as there is a lot of competition, if you need to sell make the price more attractive and make sure it looks appealing inside.
0 votes Thank Flag Link Tue Nov 27, 2007
Heather,

You should have her pull up all the other listings in that subdivision. See how yours is priced in comparison. If you want to move it quickly, just price it a little bit under the others.

I see she also has a similar townhouse listed down the way with the same price as yours. You might be surprised by all the renewed interest you may get by even lowering your price by 2,000.

Good luck and stay positive. The Raleigh market is experiencing a slight downturn but is still not as bad as a lot of other places in the country.
0 votes Thank Flag Link Tue Nov 27, 2007
A properly priced, properly marketed home should sell within 45 days. If not....it comes down to price, product, or pitch. Ask your Realtor for a list of al of the online sites your home is being marketed on....how many hits are they getting weekly. What if she can't answer the question? That could be your issue. Over 80% of prospective home buyers are looking on line.....
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Mon Nov 26, 2007
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
11 showings since 9/21
Comments (agent/prospects):
"they decided to go with an end unit."
"Like one of the other ones with the fenced in patio"
"new tonwhomes down the road."

"How was the curb appeal of this home? Good
What was the appearance of the interior of the home? Clean and well-kept
Are there any features of the home that need improvement or updating? No Improvements"

Straight from the Showings.com surveys.

I receive an email or letter from her office every week. It's always very generic. A zip code list of activity.
0 votes Thank Flag Link Mon Nov 26, 2007
Before you lower the price, you need to get with your Realtor to find out what's happening in your home's local market. How many homes have sold in your neighborhood since yours has been on? What are the other homes selling at? Are the other ones in better condition? Where is the home being marketed? What's the average DOM for your neighborhood. A good agent will call you weekly with this info and this info is what will guide you if you need to lower the price, offer incentives, etc. If they don't fire them, hire someone better, and lower the price.
0 votes Thank Flag Link Mon Nov 26, 2007
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