irose72, Other/Just Looking in

I currently have my house listed in GVR. I have had several showings, even returning for a second look.

Asked by irose72, Wed Sep 19, 2007

It's been on the market 120 days, excellent condition, appraised for $11,000 more than the asking price. Has curb appeal and loaded with lots of upgrades. I have lowered the asking price to compete with new homes being built. But even after looking at it for a second time and being priced lower than a new home the response seems to be the same, "I am looking at a new home or inventory being built". How do I compete? What else can I do? The builder even has a sign up that says "Reasons Why You Should Buy A New Home Instead of a Resale".

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It is very hard to compete with builders in this market. I would suggest you counter the builder's list of why to buy a new build and explain the benefits of buying a resale home. Offer a Home owner warranty, to provide the buyer with a sense of security.

What are the benefits of buying a resale over a new home?
1) No surprises. What you see is what you get.
2) New homes frequently develop issues after the sale. A resale has experienced those issues and repaired them.
3) The buyer can benefit from your hard work, mature landscaping, window coverings, etc.
4) A resale home typically is in an neighborhood that is mature and finished, less disturbance from noise and construction traffic.

Make up your own list and start marketing! Good luck.
2 votes Thank Flag Link Tue Sep 25, 2007
Irose,

this is an old question but worthy of a review. Without knowing the details of a particular property, I would first say that the market was different in 2007. We use to go out with a list of 10 or 12 homes to see. If one was on a busy street, the home next door was a mess, or a myriad of other reasons, it would be quickly eliminated. Now that the inventory is so low, even those detrimental things are often overlooked and the buyers will write offers quickly. Especially in GVR. Green Valley Ranch has become one of the most hot and desirable areas in the Denver Metro area. What was a buyers market in 2007 has turned into a strong seller's market over the last couple of years. If you are a GVR home buyer or seller, contact me. We are here to help you with all of your real estate needs.

http://www.aboutme.com/RobertMcGuire33
0 votes Thank Flag Link Sat Mar 22, 2014
It's never easy to explain to a home seller that everything surrounding you has influence over your results. A couple of years ago I had a client in Brighton that wanted to relocate to SE Aurora in the Tallyn's Reach area. They had already had their home on the market with another agent for close to a year with similar results that you are currently experiencing.

Real Estate Agents most often will accept a listing regardless of the fact that they know the chances of the home selling are quite low. When I encountered this Seller...I really helped him to understand that it was in his best interest to be patient and stay put for the time being. As a result, he received a better offer...by waiting.

If you are in a situation that you absolutely "Must" sell your home, then I recommend you take a hard look at the marketing efforts of your agent. If your current agent doesn't have your home featured on over 100 real estate websites nationwide and over 100 video websites world wide...then they have limited the number of Buyers that will be exposed to your house.

If your current agent hasn't customized your marketing plan to fit the proper demographic, then your basically fishing in a "mud hole".

Selling homes has changed considerably over the last 3 years...and if your property isn't being marketed to correctly through visualization & unique storyline...then Buyers aren't going to spend more than 30 seconds looking at your home on the web before they move onto the next property...

Today...you can't show up at the beauty pageant with no make-up and curlers in your hair!
0 votes Thank Flag Link Tue Apr 28, 2009
Exposure! Maximizing the exposure to potential buyers is the key. Remember, you don't need 20 buyers ... you need the one right buyer. Think of what made you buy the home. Think of what kind of buyer is looking for your type of home. I don't know your home personally, but your agent does, and more so ... you do. Think of what type of person or family is looking in your area for a home like yours. Where might they work, what interests them? Is your home near a woods or playground? Is it near shopping or shops? Search for the one right buyer by thinking of where and who they may be. Keep strong and good luck. Priced right and exposed to the right buyer ... every home will sell.
0 votes Thank Flag Link Tue Apr 22, 2008
Stay positive! You need to do everything you can in todays market. Your home should be in the best shape it can be in. Keep it cleen and stay focused. There are many homes in your area for sale and you need to outshine them all!
Web Reference: http://kennaandco.com
0 votes Thank Flag Link Fri Sep 28, 2007
Hi There, you are getting some great counsel here! I would also suggest you making an offer to the buyers that come in on the second showing. Have your Broker prepare a contract and have it sitting on your table when they come in on that second showing. Make sure your Broker alert the Buyer's Agent, so they will be sure to look for it!!

Its all about the price, at the right price your house will sell. I'm actually showing property out in GVR this weekend!! Good luck to you. This is a very competitve market, and we have to think outside the box.
0 votes Thank Flag Link Fri Sep 28, 2007
I absolutely agree with Kristal -- she took the words right out of my mouth!

I have worked with clients on new construction deals before, and it is often more of a pain than anything else.

Take advantage of the pitfalls of new construction (there are plenty!), and ride on those with your marketing, as Kristal suggested.

And, yes, if your Realtor will not provide you with a CMA, talk to her broker, indeed! Regardless of the appraisal, which is quite subjective, you should have additional hard data (recently SOLD comparables!) to support your market price. You may be surprised to find that the additional data indicates that lowering your price just $10,000 more will do the trick!

Good luck.
0 votes Thank Flag Link Tue Sep 25, 2007
Patti Pereyra, Real Estate Pro in Chicago, IL
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Irose
This is a very delicate situation. You have a signed listing agreement with a Realtor, and from your last post there appears to be some information that you need to have in order to make the best decision. You might want to consider talking with the Realtor's BROKER after considering the information you have been receiving.

First, the real estate market, like any market is dynamic. That means that it is always changing. New listings come on the market, older listings either sell, reduce price, change incentives, or expire. That means that the market 120 days ago, is not the same market as today.

Second, the Comparable Market Analysis is an ANALISYS OF THE MARKET. That means that your Realtor is supposed to help you understand what the market is like, in terms that you can understand. That also means that because the market is always changing, you needed an UPDATED MARKET ANALYSIS weekly.

Example. I had a listing, we reviewed the CMA and my client and I agreed to price the home UNDER MARKET, so we listed it at $599,000. I thought for sure it would sell for maybe $615,000. After two weeks on the market, with showings by no offers, another property, two blocks down the street, that was nicer, was listed for $599,000. I discussed this development with my client, we immediately reduced the price to $569,000, we had an accepted offer shortly thereafter.

The biggest factor you need to be aware of I asked in my response. How many homes, like yours, have SOLD since your's hit the market? If the answer is ANY, then you need to look at those homes. The homes that sell the fastest are perceived by the buyer, and their Realtor, to offer the most value.

I use a checklist of 20 things that a seller can do to enhance value for their property. Things over which the SELLER has complete contro. The Realtor's job is to EXPOSE the property to the market. It is the seller's job to follow the advice of the Realtor to make the home as attractive as possible (meaning have the best value).

As I stated earlier, I recommend talking with the Realtor's Broker immediately to review your situation. Based on your posts I do not believe your circumstances are going to improve without some action.
Good luck. Keep us posted.
0 votes Thank Flag Link Sun Sep 23, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
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Irose...

One last thing about the appraisal. Appraisals can vary from appraisal to appraisal as much as 5%. It is always important to have a current CMA especially after being on the market for 120 days. Our market changes.

Good luck with your current situation and it is important as the others suggested to sit with your Realtor immediately to discuss what is or is not happening with the sale of your home.
0 votes Thank Flag Link Sun Sep 23, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
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Irose. I have one more comment. As far as the other REALTOR asking your REALTOR to provide him/her with a CMA is concerned, I am not sure why the other agent would ask your agent to provide a CMA. I have never asked an agent to provide me with a CMA for a listing. I may have asked what comparables the listing agent used and if the agent had a CMA he'd might say that he'll send it to me, but the other agent should real do his/her own CMA. In my experience, the request for a CMA might suggest that the other agent felt that your property was overpriced.
Web Reference: http://www.go2kw.com
0 votes Thank Flag Link Sun Sep 23, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
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Hi Irose 72. I would say that your agent should still provide you with a current CMA so that you can compare the CMA and the appraisal. I don't know how old the appraisal is and whether the purpose of the appraisal was to set the initial asking price. Is the developer also selling through the MLS? If not, your agent may want to pull recent sales from public records and see how they compare to your asking price. I have found that resales often find themselves competing with the developers and unfortunately, developers are in a better position to cut the price and they oftentimes have special incentives and special financing options that are not available to those that are trying to resell.

One of the things that your home may have over the developers is landscaping. Most new homes dont have any or very little landscaping and many buyers underestimate the cost of putting landscaping in. I don't know if this is the case for your, but I thought I just point it out.

What are the reasons why buyers should buy a new home instead of a resale? Find out what the builder says and see if you can find good reasons to counter the builder's arguments.

Best of luck to you.
Web Reference: http://www.go2kw.com
0 votes Thank Flag Link Sun Sep 23, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
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Irose,
Sorry to hear such a negative uncooperative response from your REALTOR. Even with a current appraisal, a CMA is ALWAYS a useful tool. The answer to the other questions should also be provided and EXPLAINED to you by your REALTOR. Rather than to get into details here, I now see the larger issue to possibly be a lack of adequate representation by your listing agent. I say POSSIBLE--have you addressed these concerns (other than the CMA) with your current agent? Did you not like his/her answers because it was sound advice which was contrary to what you wanted to hear? Or is your current agent just not addressing your concerns at all? How did you find your current agent? Did you interview more than one agent to list your home? Why did you choose your current agent? Sorry to sound like an interrogator, but I need more specifics to be of any assistance... Looking for your reply...
0 votes Thank Flag Link Sun Sep 23, 2007
I am working with a Realtor. I asked for a CMA but he says it is not necessary because we have an appraisal, also, another realtor asked him for one as well but he would not provide one. I don't know the answer to the other questions.
0 votes Thank Flag Link Sun Sep 23, 2007
Irose,
Ouch! Sounds like you are in a highly competitive buyers market! Kurt's response gave you some good general advice, but to further assist you, we really do need answers to the questions posed by Keith... So please re-post these answers, and we'll see if we can help...
0 votes Thank Flag Link Sun Sep 23, 2007
Sounds tough! Marketing is going to be a very important factor in this sale. Exposure Exposure Exposure! I am a Realtor so I alwayse say MLS is very important. Buyers usually use agents, agents usually use MLS.

Also I would "shop" the competition, see what this builder is offering and then make your deal just a little bit sweeter.
You may also have a copy of the appraisal available for your potential buyers to see, so they know they are getting a fair deal on the home. This could also save you negotiating price later!
Sounds like your market situation is soft but stick it out and keep your head up! Selling a home is not easy to do even in a sellers market with new construction on the market just next door.
0 votes Thank Flag Link Sun Sep 23, 2007
Is your home listed with a Realtor?
Did your Realtor provide you with a CMA?
How many homes, like yours, have sold since your home was listed?
How many homes have come onto the market in the last 120 days, comparable to yours, and have sold?

Please report back...or discuss with your Realtor.`
0 votes Thank Flag Link Wed Sep 19, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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