Is your home the cleanest and lowest price in the area?

Are you on all the websites you should be. Lots of buyers in Omaha go to OmahaHomesOnline.com. It is a MUCH better value than the magazines or tv

Looking at your home on the internet (Realtor.com), it looks like a nice home, however there are no interior photos. People like photo's. Most people shop on the internet for homes, before they ever make an appt. to look at a home.

Good Luck
Stacey

One of your problems may be the fact that on Realtor.com which is the main website regular Joes and Janes use to look at properties only has ONE image. I'm not an agent; therefore I couldn't even look at any of your interior pics.

I will say that you are creating a "buzz" and interest in your property just by talking about it here on Trulia. Peter, you may very well be priced right at market value. Homes at market value sell at average market time. Looking at the last 3 months for your sub area the average market time is 54 days. It may just be a waiting game. Hopefully, it will not take that long. Another site you might want to try is posting your home to Postlets.com. It is free and it has great web syndication. It is tough if the homes around your property do not have the same amount of the curb appeal as your home.

Maybe you should make a change, not lower the price again, but you need to do something the best market time is now.

Obviously making it cheaper will make it sell, but there really has to be a better answer than that. If I'm just going to keep slashing the price why would I need a Realtor? I can slash the price and pay to have it in the MLS and in the newspaper all by myself and keep a few thousand dollars in my pocket.
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Some more info:

The first couple Realtors that went through it at 99,900 said it was priced right, but their clients were really looking for a midtown 2-story. They came through a ranch just because it caught their attention.

We had an accepted offer at 105,000 with us paying $3000 of the closing costs back in April. We were ready to close, and the buyer's pre-approved financing fell through once the bank actually took the time to check up on the person that they had pre-approved. We had another buyer at that same time back out when they heard we had accepted the offer. That really hurt. I blame the bank for that hit. There was nothing else I could have done to protect myself in that dealing. And since the financing fell through we didn't get to keep the earnest deposit either.

I'm very confident that our price is more than fair, not "overpriced". There have been plenty of sales in the area over the last year at this price and higher for less desirable homes. One neighbor now regrets buying the home that they just did knowing that I'm asking less for mine which is in so much better condition.

There are a few homes on the street that I'm sure are not helping my cause, but they were there when the others on the block sold as well.

Even if I get my full asking price at this point I'll feel like I took it in the shorts. Someone is going to get a great house that I sunk hundreds of hours and thousands of dollars into for just about my costs plus improvements, possibly less.

Proper pricing is marketing. The best marketing plan on the market will not sell an overpriced listing. Some sellers are even finding that when there house goes under contract, the home will not even appraise for the price on the contract. If the home does not appraise then the buyers can not get their financing.

Face it, one of the biggest challenges for most buyers is financing. That is why the market is the way it is. What about advertising to potential buyers that you pay some of their closing costs? Just a thought.

On traffic, do you know how many "hits" you are getting online? Some sellers might have 2,000 property views online and then have only 20 showings. That means 1,980 people looked at the home and only 20 people liked it enough to make an appointment to see the home. That means they are rejecting the home online.

If the home is vacant then I would strongly recommend professional staging. The next option is renting?

Thanks,
David Matney
Allance Real Estate

If the price is right, then it may be the marketing...you shouldn't have to give away your house...you need to be competitive in condition & price....Did you get feedback from the buyers who did see your house? Did they say it was priced too high? It is not always the price, there are alot of other things it could be. As a marketing & selling expert I usually KNOW why my listings are not selling & I let the sellers know it is up to them to fix the problems or not (I do help if I can). That is not very many showings for 4 months. Really your realtor should know the answer to this question.

Hi Peter,
Have you considered seller financing? Buying down the loan rate for the buyer? Or a lease to own option? Or just renting your home for a couple of years until the market becomes more favorable (no guarantees). Sometimes it is not a problem with the house but a problem with an interested buyer being able to finance your home. Please review these options with your listing agent, tax consultant so as to understand the advantages and disadvantages of all these options.
Dean Uhing
Prudential Ambassador

You have a very nice home. The average sale price for your area is 71K. There are homes less and more than yours. Hang in there for another 10 days and see how it goes. If you are anxious to move the home, than reduce again. I have sellers who purchased new homes 7-8 years ago and are selling below their purchase price. They added fences, finished basements and other nice features with zero return.
So few buyers and so many homes.

Peter,
There are many factors affecting price and I agree from looking at your home on the MLS your home really looks nice from the photos on the MLS. Sometimes updates will make a home more marketable and may help it sell quicker but it may not necessarily net you more money. Location has a HUGE impact on price. If your home was located in a different location it very well could be worth a great deal more. If you are now at "market value" at 99,900 then in reality your home has only been on the market for only two weeks. At $110,000 your home was listed - but it was not "in the market."

How are the properties surrounding your home? Sometimes a neighbor may be killing the sale of your home because maybe their home has some deferred maintenance. Buyers are not just looking at your home, but also looking at the properties of the area.

Other external factors are the amount of inventory in the area. Your home is in sub area 2223. In the past year, 112 residential homes have SOLD. Therefore, on average about 9 homes sell every month in that sub area. [112/12 = 9.33] Currently, there are 78 active homes on the market in that area. Which means it will take approximately 8 months to exhaust the current inventory. [78/9.33 = 8.33] Keep in mind, every month new listings enter and other listings leave the market either they sell or the listing expires. Homes follow supply and demand, if supply increases price decreases. Many sellers especially if they purchased in the last few years have to bring money to close.

The entry level market has seen a large decrease in the number of buyers that can even qualify. Buyers who qualified last year are now being turned away empty handed. Many buyers are asking the sellers to pay several thousand dollars of the buyers closing costs. I wish it were different.

This is being extremely picky but I woud suggest removing the border in the kitchen. Most buyers see wallpaper and then they think of the work that it takes to remove it. Is that that big of deal, probably not. That was the only thing I saw that jumped out at me.

If you believe you are priced right, it may just be a waiting game. The best time to sell a home is the first 30 days, after that the home becomes "stale" and folks start to wonder what is wrong with it. When a home first enters the market that in the ONLY time there is pent up demand for a home. Buyers control the market. Right now, buyers believe the market is worse than it is and sellers believe the market is better than it really is. I hope this helps and if I had a buyer that was interested believe me I would be the first to show your home. David Matney with Alliance Real Estate.

Presentation on the MLS is your number 1 selling tool. How does your home look ? does it make a buyer want to see your home ? Young buyer's select their homes from the internet. Very internet savy.
No more I can offer without your address to view the home to provide additional feedback..

The MLS is 20804424.

I feel we are at rock bottom price given quality and location. We started at 110,000 which at the time I felt was fair given the comps.

Several houses on the block of MUCH worse quality & size have sold for 99,000 in the last year.

Compared to the comps now I feel we are right on par and even a little low if all that you look at is sq ft and beds/baths, but once you throw in the quality factor our house stands out at this lower price range.

The kitchen and bath are new, the basement is finished, we have a monster deck and patio..etc. Having all of these things is not typical at this price range. We're also throwing in all of the appliances and a warranty so that a new buyer doesn't need to have anything. We even have a grill and lawn mower that are negotiable. We've done everything we can think of to make it an easy transition for a first time buyer.

We've looked at many of the comps in the area, I feel that we've got them beat. And that is going in with the most unbiased mind possible.

My sister-in-law and her husband are house hunting in this price range right now, and she wants something "as nice as ours, but not in our end of town". We've gone through several showings with them, and our house would stack up well against those listed at 115,000 - 120,000 if it were in a better area. 99,900 is going to be a steal for someone.

I bought it for 88,000 five years ago in far worse condition and with no appliances, and it was a steal at that price then compared to the other 30 houses I went through. That was without the deck, patio, new kitchen and bath... much more. (Thousands of dollars worth of improvements.)

PRICE really is no longer the issue. When it was at 110,000 I would have agreed.
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Staging, on the other hand, could very well be an issue once people get in the house, it is empty right now. But that really doesn't explain why we are getting so few people through. The pictures in the listing are of the house staged.
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Is 15-20 people in 4 months time "great traffic"? I would have expected more. I'm including both open house attendees and showings in that count. A few of those are people that are acquaintances of my family who heard about it through us, not online.

Is there another more effective way that we should be trying to reach a first time buyer? It's online at the MLS, I've put it on craigslist, and it has been in the paper for the open houses.

Hi Peter, You've been given good advice from other agents already. So I am not going to give you another answer. Just a question. The more honest you can be with the answer the better this exercise is going to work.
Pretend you're the buyer (not a seller with alot of emotions tied up with the sale of the house). Walk through your house with the eyes of a critical buyer who has learned from many sources that it's a buyer's market, that he can literally "steal" properties from sellers (your definition of a "Steal" and the buyers could be completely different). Look at the location, the things that need to be repaired and/or updated. Think how much it is going to cost to do those improvements (buyers usually estimate 3 times more than actual costs). WHAT ARE YOU, THE CRITICAL BUYER, WILLING TO PAY??? Try this price.
I'm sorry if doing this was painful. But that's my impression of the market today.
The positive side to your story is that you may lose as a seller. But you can gain on the purchase of your next home. Buying UP in a DOWN market does have its advantages.
Good luck and Thanks for using the services of a Realtor.
Dean Uhing
Prudential Ambassador

Peter,
You are asking a great question. Unfortunately, there is only one reason why a home does not sell and that is price. It sounds like you are getting great traffic and positive feedback that indicates a PRICE problem, not a marketing problem. Homes in Omaha are selling and if you want to sell you have to be the most compelling VALUE compared to the competition in the area. Here are a few tips I would recommend that might help. I would have the home pre-inspected. The 100,000 price range is entry level market, ANY little item that needs fixing HAS to be fixed otherwise you are giving the buyer and excuse to eliminate your home. Also, it is also a good idea to have the home professionally staged. Have you ever visted a entry level Hearthstone home in Omaha? An brand NEW entry level Hearthstone can be purchased in the low 100's and their model homes look impeccable. That is TOUGH to compete against. Given a choice of NEW versus OLD the young buyers will typically pick new. On price point, I prefer to list a home exactly at 100,000 instead of 99,900 because your home is invisible right now for a buyer seaching online between 100,000 and 110,000. If you price at 100 then you home is visible for buyers seaching 90-100 AND 100-110 thus doubling your exposure. However, since you are getting good traffic I would suggest lowering to at least $95,000. I hope this helps. P.S. I would LOVE to bring you a buyer! I am Licensed Broker in Omaha, NE

Great information already. Many would be happy to look at your listing here in Omaha and give you our opinion. Am sure you have a great Realtor !

A few quick comments:

You say: "We have had nothing but positive feedback from Realtors & house hunters about the house itself."
Response: Unfortunately, lookers and even Realtors tend to be quite polite. Yes, your property could be really, really nice. Or it could be something less. Most of the time, you'll get positive feedback. Value negative feedback like diamonds; it's very rare, but often very useful.

You say: "the drawback seems to be the location."
Response: Can you elaborate? Location is very important. Unfortunately, you can't do anything about location. You only have the ability to control the price and the appearance.

You say: "Part of the problem is also that only about 15 -20 people have come through in the last four months."
Response: That's a problem, but you have gotten some people through. The price may (or may not) be somewhat high, but it's apparently at least within a range that you're getting people looking. And that despite your location issues. (People who don't like a location won't even come in to look.) So, you probably also have to look at the house itself. What are people seeing once they drive up? And have you received any offers? If so, what were they? And did you counter? How did that whole process go?

You say: "We have been working with a Realtor from the start, she has held at least 3 or 4 open houses."
Response: The dirty little secret is that open houses seldom sell houses. They're usually done to make the client see that the agent is doing something. And they provide good leads for agents looking for buyers.

You say: "and the house has been online from day one."
Response: Good. That's absolutely necessary. But where? Everywhere it needs to be? Ask your agent.

You say: "We dropped the price to 99,900 two weeks ago to make it a steal."
Response: What are the comps? In some areas, $99,000 would be a steal. In other areas, it wouldn't be. Make sure your home is priced at the bottom end of the comps.

You say: "Is there something about our listing that is turning people off? Contact me and I can point you to the specific listing (I don’t want to be accused of trying to promote my property on the advice board)."
Comment: I appreciate that. However, most of the agents who are active on Trulia don't seem to mind a posting in a case like yours. You're clearly asking for input and suggestions, not just promoting your home. So I'd suggest supplying the link.

Hope that helps.