Home Selling in 89436>Question Details

Kittydaddy, Home Seller in 89436

Entering At Low Price Made Others Price Their Houses At Or Below Ours

Asked by Kittydaddy, 89436 Thu Mar 10, 2011

Hi,
Our Realtor told us to price below others in the area to make our home sell and make their prices look too high.
In other words, the other home would sell ours.
But, now since we've done that everyone else has priced at or below us to compete.
Should that be something we should even worry about?
I mean, if we had priced it even lower, they would have gone lower also.
BTW, Our home blows theirs away looks and upkeep wise.

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Answers

17
The lowest price doesn't always mean the best value. Keep in mind that an offer consists of both the price and terms. If you're willing to be more creative and flexible than your competition, then you'll most likely sell your property sooner.
1 vote Thank Flag Link Sat Apr 9, 2011
Your initial Realtor's strategy was good. Unfortunately, others uncut you. That would have happened whether yours was priced $100 under theirs or $5,000 under.

And I understand your feelings about your ex-agent listing a comparable for $20,000. I can't fault you for your reaction.

Price is very important, of course. But so is the condition of the property and how it's marketed. Sounds as if you've now covered those bases, too. And it's possible that slightly less expensive houses can sell one that costs a bit more. Buyers take a look at one that costs, say, $3,000 less and it's not in great shape or it's missing a few amenities that yours has. Then they see yours. Their reaction: "Wow. For just $3,000 we can get a whole lot more. And we can get a nice home in move-in condition." And their agents probably are pointing out that even if the buyers end up paying $3,000 more, that's only about $15 per mortgage payment.

So, you definitely want to be price-competitive. But it's not absolutely necessary to be the cheapest.

Hope that helps.
1 vote Thank Flag Link Sat Apr 9, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Wow! I didn't expect that response. I was thinking you may have received multiple offers since it was priced low. If you are still in need of a Realtor, please consider me. I'd welcome the opportunity to interview with you and see if our expectations match. A recent client of mine left a comment about me and how the sale went on trulia, zillow and yelp....check it out. Make it a great Friday!
1 vote Thank Flag Link Fri Apr 1, 2011
Another thing to keep in mind: don't just base your list price on what other's are listing their properties at, but compare them to actual recent sales. Often, the list price and sales price can vary.
1 vote Thank Flag Link Mon Mar 14, 2011
Dear Kitty..
That's interesting. So the other homes were not on the market until yours was? I would not chase prices like that. I think you should stick with what you have, but work with any good buyers who make offers. Many deals are lost when one party or the other refuses to negotiate on price. If your home is the better house, the buyer will see that too.
0 votes Thank Flag Link Sat Dec 3, 2011
Thats great! Good photos make a big difference. With that kind of interested it shouldn't be long before you see some offers!
0 votes Thank Flag Link Wed Apr 6, 2011
Michael,
In 2 weeks with the last realtor and their lame pictures we had only one showing.
With the new realtor, new virtual tour and a more positive attitude, we got 5 showings
lined up the first day it went on the market!
We are pretty excited.
0 votes Thank Flag Link Mon Apr 4, 2011
Have you at least been getting showings? What marketing has your Realtor done?
0 votes Thank Flag Link Mon Apr 4, 2011
Thank you very much Lynne.
Have a great weekend.
0 votes Thank Flag Link Fri Apr 1, 2011
Haha...no Lynne infortunatly the agents strategy DID NOT work.
0 votes Thank Flag Link Fri Apr 1, 2011
**GET THIS**
So, our home was put on the market for a price that was comprable to others in the area that were regular sales such as ours.
2 weeks later there was a house, same square footage as ours, regular sale across the street that was selling for 20k less, and guess what...it was OUR agent that had just put it on the market.
Is she our agent anymore? I think not.
0 votes Thank Flag Link Fri Apr 1, 2011
Hello,

It's been about 3 weeks since you've posted your question and I'm curious to know if you've received any offers? Did your Realtor's pricing strategy work?

Lynne
0 votes Thank Flag Link Thu Mar 31, 2011
Thanks all,
Yes it is unfortunate.
Just to let you know, our house has only been on the market 4 days and this has happened.
Actually, the house that is selling for 6k less than ours now, does not have RV storage which we have and is about 240 sq feet less than ours because we had converted one of our garages to a living quarters.
We also have about twicw the land.
I hope it will help.
0 votes Thank Flag Link Thu Mar 10, 2011
Kittydaddy,
Your situation is a great example of our depreciating market. Motivated distressed sellers continually reduce price until sold or foreclosed so everyone in the neighborhood has follow suit to be competitive. That's how we get 1-2% monthly depreciation.
Web Reference: http://www.RenownHomes.com
0 votes Thank Flag Link Thu Mar 10, 2011
Kittydaddy,
Buyers are smart and have a lot of information at their disposal. They look for the best value for the money. When a home is overpriced for the market they may look but they will make an offer on the home that offers the best value for the money. Your agent was right price your home to sell. Don't make a small adjustment, if you can adjust it by at least $5,000 under your competition.Small adjustments usually cause all others to make similar changes. Lead the pack and you should get some offers and sell your home. It's all about the competition.

All the best,
Gary Geer

http://www.GaryGeer.com
0 votes Thank Flag Link Thu Mar 10, 2011
yeap .. this is what i call a buyer market ... or renter market. Seller/Landlord will drop the asking price until they can't any more ... to move the property. it sucks big time.
0 votes Thank Flag Link Thu Mar 10, 2011
Your agent can best advise you, therefore express any concerns with him/her....
0 votes Thank Flag Link Thu Mar 10, 2011
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