Home Buying in Lincoln>Question Details

Jeff Madderom, Home Seller in Lincoln, NE

We had our house listed at 149900 one walkthru. We recently droped the price to 139900. Now nobody is walking thru any advice?

Asked by Jeff Madderom, Lincoln, NE Thu Nov 8, 2012

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LISTING PRICE
Understand that 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.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Fri Nov 9, 2012
Typically the first 3 weeks get the most exposure even if the home is not priced right because you are getting everyone that is currently out there looking. After those people have looked, you are getting the people that are new to the market, so the showings typically drop off drastically. Once they have looked, they usually don't come back. Make sure you have a professional that prices it right in the first place. Be realistic & take your REALTORS advice. They are there to work in your best interest.
Becky Herms, CRS, ePro
Lincoln First Realty
http://WWW.RealEstateInLincoln.com
Becky@RealEstateInLincoln.com
0 votes Thank Flag Link Fri Nov 9, 2012
Hi Jeff,

An interesting question would be how long has your home been listed and during that time how many homes in the area sold in that price range.

If you held at that $149,900 price range for a long time (months) than a $10,000 drop may not be enough to generate new activity. The longer you hold at a price the more chance that in the end you are going to get less money is typically a true statement. The listing becomes stale.

If no homes sold, then the market in your area may just be slow. If a few homes sold but you didn't get any showings then there is a problem with your listing. Either the property isn't being marketed correctly or else the house is way over-priced for the amenities and square footage.

One thing I have successfully done with home sellers is take some time to look at the competition. Pick out a few homes that are priced around $139,900 and ask your agent to take you out some afternoon to look at them. Put yourself in the shoes of the home buyer and what they are seeing on the market.

In this market, your house should never be priced at the top based on square footage, location, and amenities. The houses at the top tend to sell homes with similar characteristics that are priced a little lower. A ranking report may help.

Hope this is of some help.

Regards,

Joe Finnerty
http://www.lehighvalleyhomesonline.com
Prudential Patt White Real Estate
Lehigh Valley, PA
0 votes Thank Flag Link Fri Nov 9, 2012
A rule of thumb. If you're getting showings and no offers --- the house is overpriced. If you are getting no showings ----- the house is really overpriced. Sit down with the agent and take a realistic look at the comparables and be honest with yourself. How is the condition of your home in comparison with others in your price range and style? Maybe the home should be priced at $135,000. You may have driven away the one buyer that would have been prepared to buy, but they didn't look at it because they knew it was overpriced.

Is this a 'By Owner" listing? An MLS listing should be getting the proper exposure, but you could be held back by the price.

If this is a "By Owner" listing, you may not be giving your home the proper exposure. Qualified and motivated buyers are generally not looking at FSBO's, it's just reality. They want the knowledge and expertise that an agent offers. Agents are looking for homes through the MLS, they are not looking at FSBO websites and driving the neighborhoods looking for FSBO's.
0 votes Thank Flag Link Thu Nov 8, 2012
well - what does your agent have to say about this?
0 votes Thank Flag Link Thu Nov 8, 2012
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