Home Buying in 95206>Question Details

Nafisa Rafiq, Home Buyer in 95206

How can I determine why a house has been on the market for 9 months? I can't find any flaws in it and it looks pretty good.

Asked by Nafisa Rafiq, 95206 Mon Jul 4, 2011

1114 Klemeyer Cir Stockton, CA 95206

It is listed at 140 and I am thinking about offering 125 or 130

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Answers

7
Steven Ford, Broker, ABR, SRS, e-Pro’s answer
Just read Ron's answer...it can't be stated better. One other thing though.....it might have been waiting on you. If it is listed at 140...try a lower number and salt in some closing costs...say 3%. Who knows...after nine months they just might bite, or at least give you a reasonable counter.

You have some safety nets...hopefully your first one is your Realtor, second will be the appraiser, the the home inspector...and even your closing attorney/title conpany.

If you've been diligent in your search and this is the one...go for it.

Best of Luck
0 votes Thank Flag Link Fri Aug 12, 2011
BEST ANSWER
Hello Nafisa,
I believe that Ron's response below has you confused as the seller.
There could be a number of reasons as to why the home in Stockton is still on the market after nine months:

1. Overpriced for the neighborhood- check with a local areal estate agent who can provide you with comparable homes that have recently sold in the area to determine a fair offering price.

2. There could be a serious issue with the mechanicals or structure itself- a home inspector would let you know.

3. Maybe the location is undesirable- near or on a busy street, in a flood plain, there could be a large power tower on the property, or the yard is not very usable.

4. Maybe it's a short sale and the sellers are waiting for the bank's approval.

I suggest that you contact a local real estate agent in the area to assist you as he/she can discuss the saleability of this home. They should know the market well to be able to help you with your decision.
Good luck!

Laura Feghali
Prudential Connecticut Realty
1 vote Thank Flag Link Mon Jul 4, 2011
Good answer from Laura.

Notice that a couple of her answers correctly identify price as a possible problem. The first answer is just that: It's overpriced. The second and third answers suggest that there's some flaw or defect which justifies a lower price. And, most of the time, it does come down to that: It's priced too high.

So be careful. You might be overpaying if you offer $125,000 or $130,000. What if it's only worth $126,000 and you offer $130,000? What if it's only worth $120,000 and you offer $125,000. You'll be overpaying. And it's possible you'd never get financing because the house might not appraise for the overinflated amount.

So you work with YOUR Realtor (you do have one, don't you?) to determine the property's real value. First, have your Realtor do a CMA (competitive market analysis) to determine the value. Look into those areas that Laura mentioned--the condition of the house and its location. Then, once you know how much the house is really worth, you pay no more than that amount. You probably offer less. Your Realtor can help you with that strategy.

But stop thinking about what you might offer until you know how much it's worth.

Hope that helps.
1 vote Thank Flag Link Mon Jul 4, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
You are looking at it through YOUR eyes; you need to look through the Buyer's eyes:

1.) Is it painted in bright colors, or , just as bad, all white?
2.) Do you have personal photos on the walls
3.) Is there clutter; washed or un-washed laundry
4.) does the house look "lived in"?
5.) Does it smell? This is really hard for you to tell; go get a neighbor or friend and ask them.
6.) Do you have too much furniture?
7.) Do you have a bunch of pictures and magnets on the refrigerator?
8.) Has the kitchen been upgraded, or does it look like 1970?

98% of the time, when a house hasn't sold, I would say price. And if you lower the price enough, it will sell. But when you're down to $140, if you do a few things, you might be able to turn it.

It is hard to sell a house while you are living in it; but once you List your house, it is no longer YOUR house, it is the Buyer's.

Good luck and may God bless
1 vote Thank Flag Link Mon Jul 4, 2011
this may help you understand about the LIST and your discounting it:

The LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

We have found that extremely often, the LISTING PRICE that is set on SHORTSALES and REO’s are not determined, nor even discussed with the Bank: The banks play their cards very close to the vest, they will not tell the Listing Agents any more than they have to; they will not give us their lower limits. So usually, the LISTING PRICE on a distressed property is a number taken out of the air.

If you are considering a property, have a Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. If you look at enough CMA’s, you will see the trends.

Please contact a Realtor for assistance. A Buyer's Agent costs you nothing.

Good luck and may God bless
0 votes Thank Flag Link Fri Aug 12, 2011
It could be all the reasons the agents listed below.

If it is a short sale, It could be the Owner's lender is not effiecntly handling the short sale. The first Buyer could have withdrawn their offer after several months and even possibly a 2nd buyer withdrew their offer.

I have had situations where multiple buyers have made offers waited 60 to 90 days with no bank approval and withdrawn their offers becuse the bank is just too slow to respond.

I currently have a beautiful home that has been listed over a year and yet never been without an offer for more than a week or two. There have been 5 different contracts the owner has submitted to the bank for approval in the course of 15 months.
0 votes Thank Flag Link Fri Aug 12, 2011
Nafisa,
There are 3 reasons why a property may not sell quickly number 1 will be location not just the area but where it is situated on the street. Number 2 will be condition,and number 3 will be the price.You must make adjustments in one or more of these areas.
Cynthia Carter
Sales associate/ property manager
0 votes Thank Flag Link Fri Aug 12, 2011
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