Home Selling in Verona>Question Details

Lucy, Home Seller in Verona, NJ

House on the market 1 month has had 25 showings and no offers.

Asked by Lucy, Verona, NJ Sun May 17, 2009

after discussions with our realtor we lowered our price by 30k. this past week. only received 2 more showings and still no offers. what else can we do? Realtor feedback has been good. "The house shows well, priced well"...others houses in our area / price range and slightly higher are not selling either. Do we hang in there??

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11
Karen Barrett’s answer
Lucy,

Have your realtor call every showing agent that showed your home and recap the date of that showing and time so that that showing realtor can contact their buyer again. I guarantee some of those buyers have not purchased yet. Go get 'em, and work fast.
Karen
1 vote Thank Flag Link Mon May 18, 2009
Hi Lucy, You did the right thing by reducing your price - now as other posters have suggested, give it some time to work. In terms of managing your expectations around "time to sell", a simple calculation will be very helpful....with the assistance of your agent, tally the number of homes on the market in your price point in your community and divide that number by the number of homes that have gone under contract IN THE LAST 30 DAYS (in the same category). The result is what we call "market absorprtion" or the total number of months it will take for the current inventory to be sold at the current rate of sale. This is a good estimate of how long it may take to sell. Undoubtedly you will find that the number is greater than 1-2 months.

The prior posters have done you a great service with the honesty of their answers. In today's market, price isn't just important, it is critical to success. While statistically it is unlikely that your home will sell in the first 60 days that it is on the market, the fact is that the excitement for a home is greatest during that initial 60 day period. If you blow your pricing then, you've missed an opportunity and will likely play catch up, which generally results in selling for less, not more, than if you'd made the corrections early on.

You are on the right track with your reduction. Good luck to you - I hope that you have good news to report here on Trulia very soon!

Best,
Jeannie Feenick
Search and connect at http://www.feenick.com
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Mon May 18, 2009
Marc,

New Jersey? Please. Absurd.
0 votes Thank Flag Link Tue May 26, 2009
Goat,

Please. Absurd.

-Marc

Marc Paolella
Relocation Director
Member, Worldwide ERC
Licensed Realtor NJ
Licensed Appraiser NJ & NY
Century 21 Joe Tekula Realtors
Agent of the Year 2008
Owner: Sands Appraisal Service, Inc.
Phone (direct): (973) 584-4235
Search the Garden State MLS: http://www.marcpaolella.com/SearchMLS
0 votes Thank Flag Link Tue May 26, 2009
You need to determine what your home would rent for and price accordingly. If the home can rent for $1000 / month then you must price the property at $100,000.

100 x monthly rent = value

THis is the highest amount an investor would pay in order to produce positive cash flow.

In the absence of appreciation home values are now being justified by income producing potential.
0 votes Thank Flag Link Tue May 26, 2009
I am not a realtor, but I am a homebuyer in the Verona area. I am almost sure that your home is priced out of my budget otherwise I would buy your house - ha ha ha. Maybe you have some things with the house that are not that great - like no yard, no garage or on a busy street? One month for a high priced house is not really too long I would imagine in this market. It's a tough question without knowing what house. I hope you sell it soon... Verona is a great town (other than taxes - but this IS NJ! - ha). If you want to let me know which house, I can give you some honest opinions . If you want, no pressure. Good Luck!
0 votes Thank Flag Link Tue May 26, 2009
I feel your pain. I have read some of the responses to your question. I too have a home in Caldwell for sale and am experiencing the same problem. My gut has told me that price and condition are what's holding back offers. There is alot of competetion. Buyers are looking for a GREAT price and move-in condition. If its not what a buyer considers move-in condition they seem to start devaluing the property in their heads and adding up costs to bring the house to their expectations. A buyer also has to fall in love with some aspect of the home. I would recommend playing up one of the best features of the house.
0 votes Thank Flag Link Tue May 19, 2009
Lucy
The market is talking, the problem is that you are not listening.

The market value is determined by buyer's expectations and the competing homes. The price you paid, the amount you need to net, none of that matters to buyers. If you look at the link below it is clear that you have a pretty balanced market.

You need to lower the price if you are serious about selling. The longer a home sits on the market, the greater to gap between sale price and list price. I do not agree with letting it sit on the market. Either price it to sell, or take it off the market.
0 votes Thank Flag Link Mon May 18, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Lucy,

Be prepared to wait. You just lowered your price, so give it a month or so. It often takes months to sell a house right now, not weeks. If your house is on a busy road or backs up to Route 24 or a railroad or power lines, it has to be priced well below the competition. Well below. Buyers are not making offers on marginal properties right now - they are very, very picky. So if you're on a busy road, and the exact same house as yours is selling for $600,000 on a quiet street, you should be at about $500,000 plus or minus. Seems unfair but that's the way it is. Houses with an "Achilles Heel" are getting slammed right now. Are you on a busy road? Do you back to a commercial property? Do you have no backyard or live on a sharp hill? If you answered yes to this question or something like it, you will not sell without a BIG discount.

-Marc

Marc Paolella
Relocation Director
Member, Worldwide ERC
Licensed Realtor NJ
Licensed Appraiser NJ & NY
Century 21 Joe Tekula Realtors
Agent of the Year 2008
Owner: Sands Appraisal Service, Inc.
Phone (direct): (973) 584-4235
Search the Garden State MLS: http://www.marcpaolella.com/SearchMLS

-Marc
0 votes Thank Flag Link Sun May 17, 2009
Typically, after 30 days, your listing loses it's luster as a "New Listing". There are only 3 reasons houses don't sell:

1) Price/Terms
2) Location/Condition
3) Marketing

As far as "Do we hang in there?"...... That is for YOU to decide. How motivated are you to sell? Are you getting to a point where you HAVE TO sell, or are you just "thinking about" or "hoping to" sell? Motivation dictates more than anything else. If you HAVE TO sell, then drop the price and stop chasing the market OR offer Terms with the purchase of the house. Offer it as a Lease Purchase, Contract for Deed, etc.

Tell your Realtor to get educated and do more than just throw it on the MLS and put an ad in the newspaper. Tell them you want to get creative and innovative to sell your house. Many Realtors don't know how to do anything other than a typical sale. Have they consistantly posted it on Craigslist, Kijiji, Backpage, other websites, etc using Postlets, etc? I doubt it.

As far as the Feedback from other Realtors and visitors.....Saying that it shows well and is priced well is as generic-a-feedback as you can get. Many times Realtors will TELL other Realtors what to write on the feedback sheets! OBVIOUSLY, it's NOT priced well because you've had 25 showings and NO OFFERS! Open houses (if that's what your Realtor is trying to do) account for less than 5% of houses being sold. It's a tool for Realtors to pick up potential buyers for other properties. (I USED TO be a licensed Realtor and that's what ALL my Brokers told their agents to do to pick up potential buyers for OTHER properties)(One even said that it's "Highly Doubtful" that an agent will sell a house through an Open House)

Bottom line.......
Stop wasting time and drop the price till you get an offer
OR
Offer Terms with the purchase of the house

This may sound harsh but that's the reality of today's market.

Darin
Web Reference: http://hhiinvesting.com
0 votes Thank Flag Link Sun May 17, 2009
Lucy,

In my experience if you've had 10 showings and no offers the market has rejected your price. You made a (difficult, I'm sure) but wise decision to adjust the price. Give it some time to work. If it was just adjusted a week ago your REALTOR has probably hardly had time to update all of the marketing and whatnot. Hang in there and allow it some time to work.

Best of Luck!

With Your Success in Mind,

Shar Rundio
Keller Williams Integrity First Realty
480.560.7255
Twitter: @SharRundio
0 votes Thank Flag Link Sun May 17, 2009
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