Home Selling in 07450>Question Details

Phyllis, Home Seller in Ridgewood, NJ

I am selling my home. I have received only 1 offer in 3 months and the offer was low. How do I know that my?

Asked by Phyllis, Ridgewood, NJ Sun Aug 3, 2008

home is priced correctly?

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Answers

11
The likely answer, as Keith and others suggest, is that if you've only received 1 offer in 3 months, then your home is priced too high. Ask your agent for a CMA. Then, not only study it yourself, but ask your agent to take you to see the other active listings that are comps. Compare them yourself. Put yourself into the shoes of a potential purchaser. Evaluate location, price, condition, and so on.

There are other possibilities, of course. As others asked, are you a FSBO or are you listed with a Realtor? Nothing wrong with being a FSBO, but your marketing may not be as effective. And if you're a FSBO, make sure that, if you're willing to provide the buyer's agent a commission, that you make that clear in your marketing.

It's also possible that your home doesn't show well. After you've completed the exercise I suggested above (actually visiting the comps), compare their appearances to your home's. Again, put yourself into the shoes of potential buyers.

You didn't mention whether you'd had many showing. If you've had a lot of showings, that's an indication that your agent (or you, if you're a FSBO) is doing a good job of marketing, and that the price is reasonable. People are showing up because they're looking to buy a home of your approximate size in your approximate location for approximately what you've listed it for. Then, if they aren't making offer, it means that something's turning them off once they see the house. Frequently, it's the condition.

On the other hand, if you've had very few showings, then either the marketing is faulty or the price is too high, or both. Either people don't know about your house, or they do know but consider it to be a poor value.

So, get a CMA. Then tour the other comps.

Hope that helps.
1 vote Thank Flag Link Thu Aug 7, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
If you aren't getting showings, it means that the professionals (agents) think you are over priced; if you are getting showings and not many offers, it means that the buyers think you are overpriced.
Web Reference: http://www.dianeglander.com
1 vote Thank Flag Link Mon Aug 4, 2008
the market makes it clear what the value of your home is...1 low offer generally indicates that the price is too high (assuming you or your realtor are doing everything else you should be doing.
0 votes Thank Flag Link Thu Dec 8, 2011
Is your home unique or on a busy street? That would slow things down. Has your home been professionally staged and photographed by a professional. August, in Bergen does not help either.

Good luck
Web Reference: http://DebbyCrane.com
0 votes Thank Flag Link Sat Aug 15, 2009
As an appraiser myself, I must agree with Dave's answer but with one caveat. A bank appraisal is a nice thick report but has a very specific purpose which is to get a value opinion for a federally regulated mortgage. However, you as the owner does not need that type of appraisal report as it does not answer the question you are most interested in: What should my price point be and what is the local market trend?

I find the Broker Price Opinion (BPO) report to be much more effective in answering those questions from the owner's point of view. It is more accessible, easier to understand and is less expensive. Technically speaking realtors can prepare one of these reports as well and many do so for bank-owned properties. I started doing them as additional income as an appraiser as I feel it better addresses homeowner's concerns in today's highly segmented market. They're less expensive because BPO reports do not carry the liability risks that full appraisal reports carry because of their federally regulated status.
To get back to your question of knowing if your home is priced correctly......it's all about knowledge. Arm yourself with knowledge and you'll become more empowered in your dealings with your realtor and potential buyers as well. Good luck with the sale!
0 votes Thank Flag Link Thu Aug 7, 2008
No matter how you market you home today it all boils down to having it priced right. So how do you price your home to sell?

First a reality check; you have to remove your emotion from the equation. Remember it is business and prospective buyers are not concerned that you put your blood sweat and tears into your home. Also, many times a realtor is also emotionally attached to a price for your home because their reputation and commission is based on it. A recommendation that we have been providing to our clients for years is to order a bank appraisal.

One of the most accurate measures to come up with the “right” listing price is to have a mortgage appraiser do a true valuation of your property. This takes all emotion out of the equation from you as well as a prospective realtor. It is a stark objective view that the eventual buyer’s mortgage lender will undertake so you might as well get it out of the way before you list the home. The expense of a few hundred dollars is easily offset by positioning the house to sell at its current market value. If you have a mortgage planner that you have used in the past or plan to use for your new purchase you may be able to save a little on the cost by using your mortgage planner’s appraiser. Since they are in the business of ordering these regularly they usually have a discounted price arrangement.

We find that sellers that follow this advice and put their property on the market a few thousand over this appraised value are selling in 30 days or so; even in today’s market. Bottom line; price your home at a level that will create competition among buyers and watch it sell quickly.
0 votes Thank Flag Link Thu Aug 7, 2008
Phyllis
The rule of thumb is that a home, properly priced and marketed, will sell closest to asking price in the first 30 days. The anticipated results are 10-12 showings in the first two weeks, or if non offer, lower the price. If no or few showings, lower the price.

According to Trulia over 40 homes have sold in the last three months, so your problem is not that homes are not selling. Your problem is that YOUR home is not selling. In order to sell it you need showings. I'd ask your REaltor what it will take to get showings.

I would ask them to give you a list of homes with which your home is competing. The average buyer looks at 12 homes before the make an offer, so the chances are if you objectively analyze your home in comparison to the others, you will see differences.

Good luck.
0 votes Thank Flag Link Sun Aug 3, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Dear Phyllis,
I am very familiar with the RIdgewood market.
If you have had only 1 offer in three months, your house may be priced too high.
If you have an agent you are working with, have a talk with them and have them provide you with a new CMA. In 3 months local markets can change quite a bit.
If you are a FSBO, do your research on the internet to come up with the answers.
Maybe there need to be some changes made in your hone that you can't see. Please feel free to contact me (if you aren't listed with an agent) and I could provide yo with some tips for making your house more desirable to today's buyers.
Good Luck, and I look forward to hearing from you. Please contact me through my website.
Sharon Kozinn
Web Reference: http://sharonkozinn.com
0 votes Thank Flag Link Sun Aug 3, 2008
I watch the Ridgewood market pretty closely and it seems to me that prices have been hit harder there than in some of the other towns in the area.
In this market 3 months is not a particularly long time sad to say and lots of people will say that one offer is one more than they have gotten.
However you really need to assess your price point.. Now you do not say whether you are listed with an agent or if you are FSBOing but either way you need to look at the comparables and decide if you are overpriced.
We are finding that there are buyers out there but they are very price conscious. Since at every price level thre are a number of listings so you need to make maximum use of the tools available to a seller. Moreover your house needs to be the most attractive at its price. Lots of people are using stagers to help make the house tand out
If I can be of any help email me.
Peter Rogers
Fydell@yahoo.com
0 votes Thank Flag Link Sun Aug 3, 2008
Properly priced and properly marked, your home, in any market, should sell in 45 days. If it does not, it comes down to either Price, Product (your home) or Pitch (marketing.) Traditionally, the first offer on your home is usually the best.

Are you using a Realtor? Are you following their pricing advice? Are folks still coming to see your home?
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sun Aug 3, 2008
Cindi Hagley, Real Estate Pro in Pleasanton, CA
MVP'08
Contact
Ask your listing agent for his/her professional opinion and for a new CMA (Comparative Market Analysis). It seems like the market has "spoken" and you should lower your asking price.

Joan Prout, MBA
Broker Associate
RE/MAX Villa REALTORS
Jersey City, NJ
mailto:Joan@JoanProut.com
800-671-0596x1
Web Reference: http://www.JoanProut.com
0 votes Thank Flag Link Sun Aug 3, 2008
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