Home Selling in Potomac>Question Details

April, Both Buyer and Seller in Potomac, MD

Do you recommend that I lower my price? After 25 showings we have had zero offers, not even a low ball offer?

Asked by April, Potomac, MD Mon Mar 12, 2012

Realtors and Buyers say "Great location, Shows very well, Gorgeous, Charming, Wow"! House is staged. Bread, Cookies, etc always cooking and feedback centers on how wonderful the house is. BUT....the most common negative is that the house is just too small.
My thought is that lowering the price will not make the house any bigger. Buyers know the price and location and other statistics before they even come to the house to see it so the price isn't spooking them. If I thought a house was too small then it really wouldn't matter if the seller dropped the price by 25k, 50k or even 100k....to me if a house is too small for me a price reduction is simply not going to make me want to submit an offer. I love my Realtor, she is great at marketing but I am not sure she is right about dropping the price. She was fine with the price when I listed it, the appraiser agreed. Will dropping the price really help? My thinking--the house will only work for certain people regardless of price????

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Since your showing feedback has been "Great location, Shows very well" the remaining variable is price. You are correct "lowering the price will not make the house any bigger" but it may change the competition. The average buyer will look at 10 homes and purchase the one that is the best value and meets their needs. It sounds like your house is one of the nine that sell the others. Your realtor will make an educated guess on list pricing usually based on recent sales comps but remember the market has the final word and they are speaking loud and clear. Many years ago we had data that showed a house that was receiving showings but no offers was overpriced by 8+%. When reducing the price you should try and get to the next lower price bracket, in my experience these bracket are generally in $50k increments. An example of not changing a pricing bracket is lowering a price from say $525k to $$505k. But lowering the to $499k would now put you in a new pricing bracket ($450k-$500K) and totally change the competition. I hope this helps and hang in there. I think we are in one of the best markets I have seen in the last few years.
1 vote Thank Flag Link Tue Mar 13, 2012
I am going to take a different path. I've sold new homes for 25 years, and many times, we'll see qualified traffic of 30-50 people and no offers....and that's a brand new home! Other times, we will have only 6 groups come through on a particular weekend and sell 3 out of the 6 customers. There is no exact ratio of buyers to contract offers. It varies with every home listed.

All you can do is pay attention to the buyer's needs. In order of priority: location, condition (and most importantly appearance) of the home and then the price. If you have a unique condition affecting the property, like power lines, or highway traffic, then you will have to just simply wait for the right buyer.

Have you upgraded/renovated the kitchen and baths in recent years? This is all important. Sometimes just installing some new stainless steel appliances, granite counter tops and a fresh coat of paint is all it takes. A $5,000 - $10,000 investment will take a tired-looking kitchen and make it sparkle again and make the home sell much faster!

Good luck. I hope that you have a successful contract and settlement very soon!
1 vote Thank Flag Link Wed Mar 21, 2012
If it is a starter home offer to pay all of the buyer’s closing cost and pre-paids. They will ask for it anyway in most cases so use it as a marketing tool. It may be possible to buy down the interest rate even further than the already low level. If the buyer goes FHA you can pay the up-front mortgage insurance also. Advertise a financing package. Good luck,
1 vote Thank Flag Link Tue Mar 13, 2012
Lowering your price will bring your buyer. People will forgive the size when the price is right. You are reading the "feedback" correctly. When you say that 25 buyers have come through your home and no offers have been made, pricing is the issue. It's easy to get discouraged when you have that much traffic and no results. You may find it helpful to make a plan for lowering the price. I suggest dropping the price 5% every 14 days until you find that buyer. Good Luck!
1 vote Thank Flag Link Mon Mar 12, 2012
One would think that those shopping in lower price points are also looking for smaller homes than the higher priced homes. But there are so many factors in pricing like those you mentioned (location & amenities, etc), that this logic may not necessarily be true or accurate.

Another generalization for you...the lower the price the quicker the sale. Those that want to get the higher end have to wait longer for the taker.

What's the average days on market for the area? If you're under that, maybe it would make sense to hold steady at the price and revisit when & if you go beyond the average DOM.

Or try some super creative strategies...offer $3k in furniture gift card for new furniture. I hear many times folks saying "I love the place but my current furniture won't fit & I don't have the budget to buy new". This is just one thought...maybe review all the specific feedback and see if you can come up with an easy solution for the most common objections.
1 vote Thank Flag Link Mon Mar 12, 2012
Based on the feedback and number of showings, it's likely the price. Buyers shop in price ranges and it seems the buyers in your range are expecting something bigger. If you drop your price your house will better fit those buyers expectations and requirements.
1 vote Thank Flag Link Mon Mar 12, 2012
Most of the time when you have showings and no offers it's due to the price. Buyers will look at all similar homes and then buy the home that offers the most value for them. 95% of the time price is the issue. Everything sells at the right price. By lowering your price more buyers will qualify to buy your home. The best practice is to lead the pack not to follow. Ask you agent for recent SOLD com parables and then price your home accordingly to get your home sold. Don't pay attention to active listed prices as this what seller's hope to sell their home for. Sold pricing represents what buyer's will pay for a similar home. Make the change and get ready to move.

All the best,
Gary Geer

http://www.ggeer.illinoisproperty.com
0 votes Thank Flag Link Wed Mar 21, 2012
The first thing you need to do is assess what your house is worth in todays market through a BPO or appraisal You could be overpriced but buyers would at leats make an offer. You are getting showings which means there is another issue. you need to ask your listing agent as with that many showings they should know from the commenst what the problem is.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Mar 19, 2012
I tend to take a different view on this than most agents. I have seen so many cases where the "right buyer" just didn't come on the scene for a few months. Sometimes it really is a matter of waiting things out. As long as you're getting good "traffic" through the home, I'd advise my client in this situation to wait a few months. It sounds like you and your agent are doing all the right things with regard to analyzing and responding to feedback. I'm sure that your agent is the best person to rely upon for advice about when to reduce your price. Hang in there! Colleen Barlow, W.C, & A. N. Miller, a Long & Foster Co., Potomac, MD
0 votes Thank Flag Link Mon Mar 19, 2012
Having 25 showings with out an offer indicates you have pricing, condition issues or location issues or a
combination of the 3. Sellers need to shop their own home, that is search the price and feature category
as a buyer would on the internet and see how your home fits with in the category with other homes. Sellers generally see their home as the only home on the market which is farther from the truth....buyers certainly
don't.

12 to 15 showings on a home with out an offer is the magic number a price drop is needed. Since you have had 25 showings your price adjustment may need to be significant.

Since your realize you have pricing errors re-price you home on the lower end of your competion as a buyer
would see your home on the internet and in person. Doing so may re-capture the buyers who have already seen your home. They may fall in love with your home again.....and the new price.
0 votes Thank Flag Link Tue Mar 13, 2012
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