I am amazed still to this very day that owners DON'T GET IT. Price is most usually the cure all. You have 20 lookers and no offers, something is wrong! So, you only have 2 Choices if you want to sell. You either have to FIX the problem, or ADJUST the price. Usually in getting the buyers feedback from another agent, the other agent will usually say something like: The buyer liked it (yours) but they found another home they liked better for less money, or in better condition, better neighborhood. Or the buyers didn't care for the floorplan. The house was too small, too big, too dated. It is up to your agent to get feedback on all showings and to report back to you. If there is a common thread in feedback, then maybe you can correct the problem, if not, adjust the price.
I hate to use Car sales as an example, but people buy and sell cars more often than Real Estate. But have you ever gone to a car lot because you saw a sign that said something like 2007 LEXUS Convertible only $20,000. You pull into the lot and the salesperson right away starts his sales pitch on that car, then tells you it has 150,000 miles on it AS IS, but this Lexus over here is only $30,000 with 70,000 miles and we're offering a 2 year warranty and 0% INT for 3 years. BAIT AND SWITCH or as Gregory said below a bouncer house, for you this is not good, what I am saying is that the realtors might be using your property to sell another.
The reasons buyers don't make offers well below listing prices are...........
They aren't shown the house in the first place, because the agent feels it's a waste of time to show an overpriced home (and it generally is) - the price intimidates both buyer and agent - why waste my time showing a house listed at 500,000 when I know it should be listed at 439,0000 - no agent wants to be the one to attempt to "enlighten" the seller that his list price, or his expectations, are too high. It is usually met with failure , disgruntled sellers and frustrated buyers.
The buyers have also been searching the internet, and looking at other homes - they are educated these days - they, too, know when a home is overpriced...they don't want to waste their time, either, or wind up being frustrated that their offer is rejected. Often a low offer isn't even given a counter offer by the seller, who now feels insulted.
The price is an indicator of seller's expectations and motivation.....let me repeat that - the price is the MAIN indicator of the sellers expectations and motivation. Very few sellers list their homes at 500,000 and accept an offer of 435,000 - not without an interim reduction..........the best way they can signal to the buyers that they are open to offers is to price it in the right vicinity............reductions are the way to indicate a willingness to negotiate, with reasonable expectations, and not wishful thinking and unrealistic hopes.
Once in a while a buyer has the courage to make a low offer (low by the standards of the list price )...rarely does it work. The buyer and agent would rather spend their time looking at, and making offers on homes priced right ...................that way they can be assured of a successful outcome.
There probably isn't a realtor on this site who hasn't heard a seller say, when wanting a list price that is too high.... "Well, let them (the buyers) make me an offer".......famout last words!!! The reality is - they don't make those offers..
In today's market, there may be a few bottom feeders who delight in making "low" offers........making the offer, and having it be accepted are 2 entirely different things.
Hope this answered your questions Anti!!
I don't care if the "boxed up" stuff is wrapped in pretty paper with a bow on it. IT IS CLUTTER. Throw it out or rent a storage space.
If you can't afford to paint it and clean the carpets - then you can't afford to sell it. LOWER THE PRICE.
It is now being used as the "bouncer" house. Ask your new agent what that means.
The best way to communicate"willingness to negotiate" is to lower the price. Telling your agent you are negotiable does not let the buyers know that. By lowering the price to where it should be you should receive an offer close to asking.
YOu say the burden can't all be on the price, but it is: price trumps everything: condition, location, everything. Your house was shown 20 times, I have to think that there were at least 15 agents involved in the process, they can't all lack selling skills.
Do you not think the agents are trying to sell the house?? Remember, we work for free until we make a sale, and have a closing! Agents (or at least the better agents) will do their very best to point out the positive aspects of the home.....if there are limited positive aspects, we point out the "potential" it might have - the good location - surrounding area, etc, etc. We try to "overcome any objections" the buyer might have.
The bottom line is, though, you can't force someone to love a home. This isn't selling a car that will be traded in in 3 or 4 years. But, we do need to point out things that aren't apparent about the home, or try to help the buyer get past a hot pink painted bedroom and shag capeting! And, most agents do this.
In addition, in this turbulent market, buyers are more informed - they often already know abut the comparable sales and have information about the community. Buyers want to be assured they are making the right decision in purchasing a home. Nowadays, they often keep emotions on an even keel with their business sense. They need to like or love a home, true, but they also want to feel it is a good business decision .
Now, I am not saying that there aren't innept agents - there are. I have had to accompany showings on some of my listings, and I have been amazed at what an ineffective job some agents did showing the house, but.........if the buyer likes the house, the agent will do their best to encourage the sale.
So..........You are asking if the buyer's agent might be responsible for some sales not taking place - Ultimately, I don't think so. Too many other variables are involved. Correct pricing, along with correct marketing can really make the difference. But, I will agree that it certainly helps to have a knowledgeable agent doing the showing.....who has a good working relationship with the buyer.
No one knows what your "willingness to negotiate" is in real terms. Speak english - lower the price to what you are "willing to negotiate" or, clean it up and make the necessary repairs.
But, that's just my opinion. Give me the address and I'll tell you what I really think.
To answer some of the questions from agents -- my listing agent wanted to price our place $10K higher in the beginning. Given the housing market, my husband and I were the ones to ask the agent to list it more realistically, which she did. After a month, we brought it down by $10K, this time on the agent's advice.
The agent's manager says our current listing price is on track ; it's the area absorption issue and not our property (which they say shows well); that more open houses are needed. They declined to show us a marketing plan and said that we the sellers need more patience.
We're not blaming the agent for not getting us an offer, but -- given that we're willing to negotiate on price, are flexible with regard to closing costs, and otherwise not being greedy with the listing price -- it's a puzzle why there hasn't been a single written offer -- lowball or not -- on our property. That is all.
I think your agent is doing a great job that you have that many lookers, and I think that there are good numbers of prospect home buyers in your area interested in townhouses like yours.
You have 20ish prospects who received the listing info/ advertisments and talked to either their or your agent about your house... and then they spent the time to come out and see it.
What I am wondering here is that if there are anything in your listing description don't quite match the property and made the lookers think differently after visiting?
Do you think there could be anything inside or outside of the property that distracts the people who may be considering moving in?
Could you have scheduled a less traffic time during the day so that your prospects can feel easy commute from the house to work etc?
Sometimes buyers may have concerns about their ability to obtain financing. Is your selling price within any loan limits that your local lenders have? Or are you able to offer any type of closing cost contributions to your buyers?
If you feel selling it for less might be a solution but are not in the position to do so, ask your lender to see if they might take a little discount.
Buyer are choosy and their confidence is low. They need the wow factor of your house to impress them. Determine your property's wow factor and play it up. Maybe it's the view, the new kitchen or a great yard. Whatever it is make sure every buyer is aware of the features that make your property special.
There are several things you can do to increase the chance of obtaining an offer on your property. First, keep the lines of communication open with your agent. Be cooperative and do your part to make sure interested buyers are welcome. Think of every showing as a job interview. Prepare for it as if the sale depends upon it.
Make sure your property stands out from the crowd. It must be the best: best of show, best value, best terms and the best choice for the propective buyer.
Express your concerns to your agent. Ask what you can do to increase your home's appeal to prospective buyers. It takes teamwork to get the job done, and working together toward a common goal is the best way to achieve a closed sale.
Quite the contrary.....you should be thanking your agent for generating the volume of traffic resulting in potential buyers seeing your home.
20 lookers and no serious buyers is a dead give away that there is an issue with the home. Generally this is an indication of the need for a price reduction.
Ask your agent to update the CMA and base your new price on the results of this information.
Has your listing agent prepared you for the fact that you may have to drop your price? Have you yet? Ninty days is a prime time to reevaluate your price point and take action. You also want to beware of "chasing the market down," which can cost you thousands in the end; more so than if you just priced the home competitively to start. I would recommend you asking your listing agent if you could possibly be "chasing down the market" and listen carefully to what their response is.
I know you are frustrated. Most sellers are these days.
The large number of showings you have had is excellent. I have one questions, though - what has the feedback been from the buyers who were brought through???
That feedback is invaluable. Do they think the price is too high? Is there something about the house that isn't working for the buyers? Use the feedback - the market is talking to you, so you need to listen and discuss it with your agent.
As far as whether you should find a new agent - no, you shouldn't. Our job as listing agents is to set the stage for showings.....market the house so that buyers are brought through. It looks as though your agent has done that, and you are getting the results of that marketing. As agents, we can't force buyers to make offers.........we can suggest what the seller needs to do to help the process along - that's why I suggested discussing the feedback with your agent.
If there is nothing about your home that buyers might be objecting to.........lower the price. Assuming everythig else about your home is in good shape, if all of those showings haven't generated an offer - you haven't hit the right price point yet.
One other thing - I don't know where you are, but in my area, townhomes are harder hit than single family homes. There are so many of them saturating the market now. You need patience and the strength to get the price where it needs to be.
By the way, you might want to check out a few of my blogs, not only on what to do to help get your home sold, but what NOT to do, too!
Good luck to you......hang in there, and keep an open mind to your agent's suggestions!
Prudential New jersey Properties
Based on the stats you've provided, in today's market, its sounds as if your agent is doing a good job marketing your property and I would certainly not recommend a switch at this time, but rather a price reduction especially if other comparable properties are listed at a lesser price and have gone under contract.
Be aware that agents who might solicit your business (albieit online or in person) while in under contract to sell with another agency are in violation of real estate commission guidelines and frantkly, in my view, are only looking at for their best interests (i.e., gaining your business), not yours.
Hang in there, and understand that this is a tough market wherein price changes are the norm.
Love and Peace,
Francesca, Realtor, ePro
How many homes, like yours, have sold in the last three months?
According to Trullia, 53 homes have recently sold, so why not yours?
In the last 12 months the average price per square foot dropped 29%. That is about 2.5% PER MONTH, which is how much you have lost by not selling.
No offer, lower the price. Showings and no offers, lower the price. Low offers lower the price.
Re look at the market in your area, you might just have to reduce the listing price to be a little more competitive you are getting some traffic in your house, Have you thought about staging it? A fresh coat of paint and some nice window treatments, and lighting is very important! Also get rid of any clutterness and make sure the agent is marketing in multiple sites?
Best of luck!
As stressed, just not so. Overpriced properties are overlooked by buyers - and their agents - who have the data and knowledge to understand pricing dynamics better than ever. Overpricing gives "time" the opportunity to take its toll on value and as days on the market builds, value declines. Make no mistake about it, the passage of time is not kind to sellers.
Price it right from the start, explode on the market with aggressive marketing that draw feedback and listen. If you've missed the mark pricing-wise, adjust quickly. The greatest excitement for a home is in the initial 45-60 days of its listing. That is when you will fetch the best price. After that point, you are playing catch up.
Unwavering Commitment to Service
If you get showings and no offers a small price adjustment may be needed.
Beacuse they don't. That's it. Some people just don't. If you look at selling prices they are usually VERY CLOSE to the last asking price. Price it right and there will be SERIOUS offers. People are all different. They have different personalities, different ways of thinking, different ways of reacting to a situation. Because you personally would JUST MAKE AN OFFER if price was the issue, others wouldn't. And they can't be coerced into doing it. It just isn't in their nature.
In this market there are many instances where the owner's preception of the market price and the buyers perception are very far apart. For example if a house is listed for sale at $325k and comps show that the current market price is $300k, the buyer's agent will make his/her client aware of that fact. Since this is a "buyers market" there are many instances in the Fords, Woodbridge and Edison marketplace where the buyer insists on making an offer well below the market price such as $250k with no intention of making serious counteroffers. Their rationale is "it is a buyers market" and they try to catch a bargain. If the offer is presented, more times than not, there will never be a "meeting of the minds" during the negotiation and the house languishes on the market. From the buyer's perspective, they will move on to their next target with the mindset that "nothing ventured nothing gained".
So in this example we have two pricing issues which are a reality in for many Middlesex Co listings: an owner has listed his home for sale over market and the buyers are making "lowball" offers. Even when a home is listed at the market price, we are still dealing with the buyer's mindset that they will not offer anything close to market price.
Prudential New Jersey Properties
3 Amboy Av
Metuchen, NJ 08840
732-494-7677 x417 Office
Price, Terms, Condition, Location, Marketing and Seller Motivation. Are you motivated to sell?, You cannot change your location, but if your home is not in a desireable location the only thing you can do is adjust the price. Condition - Good, Fair, Poor, is your home dated?? take a look at your condition compared to those selling (your competition). Who set the price? The realtor makes recommendations on price but the owner is the one who sets the price. Who is in control of the condition of the home? Who set the terms for the sale? The only thing your realtor is in control of is marketing. Getting the property in front of the buying public. Its time to sit down with your realtor and get an updated marketing report.
It seems like your townhouse is priced in a range where you are getting a lot of buyer traffic. In an effort to encourage offers and express your motivation to sell, you might ask your agent to include an offer of closing cost assistance - either a dollar amount or a percentage. It would have to comply with the MLS guidelines where your house is listed. In my area, seller concessions can be included in the property description area. Many buyers are requesting concessions anyway, but to offer it up front might make you house more attractive than your competition and shows your willingness to cooperate.
If the paint colors seem to be a real issue in the feedback you've received, $100 in paint and supplies might be a worth while investment. Buyers love to see themselves moving into a new home and not having to do any work.
Good luck and don't give up on your agent.
I am going to go back to my original response to your question....what has the FEEDBACK been???
Has your agent obtained and shared feedback? It is vital to know what the buyers who were shown your home thought. You certainly have had enough showings to get a sense of what they thought. That information is vital. Hopefully, your agent has been following up with the buyers' agents. Have those buyers bought anything else, or are they still looking? Are there many other units for sale, competing with yours, in your complex?
If you haven't heard of any specific objections voiced by the buyers, and nothing else is selling in your complex, then at least you will have a fuller picture of what the market is doing in your area. When all else fails - reduce the price....there's nothing like a substantial (and yes, possibly painful) reduction to bring in an offer, especially in this market.
Prudential NJ Properties
She has 20 views in 3 month, the same 3 months that saw wallstreet fall apart, chrystler file bankruptcy, GM
on the verge, the feds dumping trillions
and we blame the realtor??
Drink more koolaid!
Kudos to you for appreciating the advice of Trulia participants and the value of Trulia. (oh, and ignore Daniel, you always get one or two of those). As I said earlier, just hang in there and keep the faith.
But, keep on thing in mind . . . most realtors don't like to present "lowballs" and will often discourage buyers from presenting such offers for fear that it might "insult the seller" (a theory, often true, taught by many large RE firms). I've had many sellers who resist the price change on the premise that they have yet to receive an offer, but frankly, it just doesn't work that way (can't openly explain why). Once, they agree to the price change, I often find that an offer is received. In your case, it may be prudent to wait a little longer for that price change, but only your Realtor in conjunction with the current feedback can justify that decision.
As an aside (and I realize this is trivial when compared to a home sale), I had an OMG moment this weekend while having a garage sale. I stood firm on my prices on certain big tickets items on Saturday that were new and unused - many inquirieies, no sales . . . I thought, brand new - r u kidding me - I'd pay that in a flash. On Sunday, I had less lookers, but the same amount of interest. I was more flexible, reduced my prices and whaaaalaaa, everything sold! I thought gee, this is no different than selling Real Estate and must be Sales 101 . . . . much lnterest, no sales, reduce and it will happen.
Love and Peace,
Clutter is not an issue. We live in the property, but things are boxed up. The only possible issue is paint color, which is a personal taste matter. We can't afford to paint neutral tones now, but are willing to credit the buyer for painting.
I'm not sure how to communicate "willingness to negotiate" other than telling the agent to bring us an offer, and we'll work with it.
Daniel -- no need for the obnoxious and useless post. Don't judge strangers who are just trying to gather information.
Although I agree that price is usally the issue, you can price a property right and still have it linger. Sometimes the market just goes dead. Three months is pretty brief in this tough market. When there is a lot of property available, buyers take a LOT longer to buy and look at more properties. And then sometimes they decide to "wait till next year."
In our local market, we are coming off a particularly slow winter. However, things are picking up again. So there were some properties on the market that genuinely were priced right but a real paucity of buyers. I have a listing that was priced right but the Sellers really want to move it fast. In this market, there is only one way to do that: underprice it. I didn't recommend a price cut in the dead of winter - it would not have produced results.
So, besides looking at showings, have your agent show you sales statistics and see where you are relative to the market. You are on the right track here and asking the right questions.
And where there is a lot of inventory, a web marketing plan, rather than print, is really important. But you are getting showings so clearly something is working here. So bring this up for further discussion.
Best of luck and please keep us posted.
Have you not read anything that has occured in the real estate market?? Everything is slow, banks raised requirements to get financing, thousands of bank owned home directly competing against yours and you blame the agent..
I hope your agent fires you!
Have a heart to heart with your agent - reinforce your realism and desire to get your home sold. She/he should welcome your attitude - it is, in fact, the mindset that is required for success in today's market. YOu will do better, not worse, it you get on with it now - as summer rolls in, fewer buyers will be present in the market and prices will deteriorate.
Good luck to you!
Search and connect at http://www.feenick.com
Now, however, there are more looky-lookers who really cannot qualify for a mortgage. (Honest, they are a bit tighter on this than they used to be.)
In some areas we have seen the number of listing decline but so has the number of buyers.
Why I say that we can tell about your agent is because we don't know what you have discussed with him/her. The agent should be coaching you as to where the market is: Price of actual sales (It does little good to match the guy across the street if both of you are 15% over the actual sales.) Also, what's the ratio of sales to inventory? If one or two sell a month and 20 are available, what's the month's coverage? If it's large number, remember the bright penny theory. Only the brightest pennies will be chosen and the rest will remain in inventory.
If you want to sell very badly, you'll have to beat ALL the competition, just like running a race, only one first place is given, the rest are all also-rans.
There are just TOO MANY houses in inventory right now to have THAT many pepole in that short a time. If your home was priced incorrectly, NONE of the buyers out in THIS market would bother.
I would have to say that perhaps there is something else going on.
How clean is your home? Does it have a "NEUTRAL"decor? Are there dogs barking at pepole during showings? Does it smell like wet cat? Do you give unnessecary information to prospective buyers?IE; Say things like I will only accept x" Do you hawk over them while they look? Is there a garbage dump of a home next door?I use these examples to illustrate just a few of the infinite reasons your home might be getting turned down.I would suggest pretending your a buyer looking in your pricepoint in your town, and check out the competition-ask what do they have that you don't? You can hire a person to come and "stage" your house which may make it more appealing to potential buyers. Declutter-nobody is interested in seeing personal family photos of you guys or looking at your doll collection. Buyers are not capeable of making decisions on square footage and useable living space while the chit chat with you.They need open space lots of light and a competent realtor that knows the home, the buyers needs and how to merge the 2 together. Think about it.
The one thing that is clear....is that there is no clear answer with the information provided. Start by talking with your current agent.
Joan Wilson (Realtor, SRES, Ecobroker)
California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
These 20 "lookers" have seen other properties as well, and they didn't choose yours, it means other properties in the similar price is better than yours. Sorry, but this is a reality. Market price is the price that quilified buyer is willing to pay. Buyers dictate the price not the sellers. I would say the time to find another selling agent, if nobody came to see your property.
ADVANCED REALTY GROUP
Just Jersey Properties
Is your home priced correctly? I would think that 20 showings is pretty good considering the times and I owuld also hope that you are priced correctly. Has your agent discussed the comps with ou in detail?
I would hope that your agent is working to get your home sold. What has the agent done / not done to bring on the thought that someone else can do better? Call or email to discuss further.
Broker / Manager
Orange Key Realty