Home Selling in Hanover Park>Question Details

Bilotas Mario, Real Estate Pro in Palatine, IL

I have a client that has been listed for a long time as the lowest priced unit in the complex. My question

Asked by Bilotas Mario, Palatine, IL Sun Dec 2, 2007

is: As realtors often start at the highest price and work their way down, is it smarter to raise this clients home price to be just below the listed comparables, or suggest further reductions. He is currently at $159,900, and the next home is listed at $168 - 175k.

Mario Bilotas
Four Daughters Real Estate
http://www.SoldbyMario.com

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8
Hi Mario, In my opinion your listing could only be overlooked if someone was doing a search limited by the price. Ex.: $ 160K - 180K.

But, if the buyer's pocket is being considered on the search, and if the location and community is already a key factor, in this hypothetical situation, chances are, buyer and or buyer's agent are researching all the properties in that location/community, and the lower priced property should have much higher chances to be seeing and not missed, than the higher priced one.

All just hypotheses though. The best way to measure it, is getting with the other listing agents in the complex. Why don't you promote a broker's open house? I would be curious to know the outcome. Thanks!
Web Reference: http://www.karinaleal.com
1 vote Thank Flag Link Mon Dec 3, 2007
Is your listing and end unit? What floor is it on? What condition is it in? Has a real estate broker given his/her Broker Price Opinion (BPO). Or better yet, have you had a state licensed appraisal conducted? My guess is that your listing is overpriced...otherwise, it should have sold by now. I agree with Deborah and Karina inasmuch as you really need to visit the competition and see what shape/condition those homes are in. Specifically, look at the comparable sold units and then create a comprehensive comparable market analysis, which should give you a more viable and realistic asking price for your subject property. Good luck!
Best,
Mark Palace, CEO/Founder
Palace Properties International, Inc.
http://www.PalacePropertiesOnline.com
321.773.5611
321.704.9305
1 vote Thank Flag Link Sun Dec 2, 2007
As a Realtor I always suggest pricing the property competitively. Much like bread, property does not have a shelf life. If one starts high they are always trying to keep ahead of the bell curve with the sales. Check the development, surrounding developments and like kind and quality properties to check on recent sales and listings if it is in a declining market.
1 vote Thank Flag Link Sun Dec 2, 2007
Pam Winterba…, Real Estate Pro in ,
MVP'08
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Hi Mario, I agree with Deborah. I would also visit the other units available for sale in the complex, and try to get an idea about the way the last ones sold ( if any) were showing. Also, if your unit has being getting frequent showings, what is the feedback out of it. Maybe the price is not the issue, but the condition of the unit or the way it is staged.
Web Reference: http://www.karinaleal.com
1 vote Thank Flag Link Sun Dec 2, 2007
Have any sold in that complex? What nearby complexes might you be competing against? What has the activity been in those complexes?

It would be a very rare circumstance that I could ever image raising the price of a home because it had not sold at a lower price. Hard for me to image suggesting such. Although I have had a seller insist on such before, against my advice. It was quite interesting, as I had several people - buyers and agents - notice and ask why.

I would suggest, instead, try to determine if competittve units were selling (in your complex or nearby ones) and find out why buyers chose the competition over yours.
1 vote Thank Flag Link Sun Dec 2, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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Mario,

You don't say if anyone has been showing the property. Have there been any recent sales in the subdivision? My research tell there are areas in H.P. that have had little or no activity in over a year. If you are getting showing what is the feedback? What is the condition of the unit? Have other units sold in the subdivision? What is your competition? You need to know the answers to these questions. I've sold many t/h in Hanover Park over the years and recently the market there has been hit harder than some of the surrounding areas.

Good Luck
Web Reference: http://www.howardking.com
0 votes Thank Flag Link Wed Apr 16, 2008
Hi Folks - some great advice, thank you, and I agree that there are many "controllable" factors that I should look into that may be reviewed and altered to increase the potential of this listing's movement. If you don't mind I want to break down a thought process behind my potential misconception, and hope to get your feedback and advice if my thought process is skewed.

Why I thought raising the price may help:

When a buyer calls and says, I want to be in "X" city, and cannot go over "$" and I need min "Bed Count" & "Bath Count", and they add, I want it in move in "Condition", here is the natural thought process that enters my mind:

Based on my limitations (X + $ + Bed + Bath + Condition) = (aprox 70 properties)
Now, from experience its easy to assume that the higher priced homes with these specifications will be either due to one of these 3 factors: 1. Most Updates 2. Size 3. Seller Overpriced (I will not know until I go in)

As an agent searching though limited pictures, and remarks, it is safe to say that I may find for example 7 neighborhoods, holding aprox 10 properties within each area. I have a client that works during the day and wants to be shown about 14 properties over a course of 3 days.

I would probably show them:
---2 homes per neighborhood to narrow in
Therefore showing (2) x 7 neighborhoods = aprox 14 homes

Therefore back to my original question: Wouldn't we start at the top of the price range hoping that these homes offer the best "Move in Condition, size, updates for the same money? I think “yes”, which means my lower priced property is being judged based on buyer perception of the higher priced homes and will assume the less expansive homes offers LESS.

My lowest listed property offers more than the homes which are $10k+ listed properties, but will not be seen and the neighborhood will only be judged on the higher priced homes.

Sorry for such a goofy mathematical approach, but this little "key hole" concerns me and I'm very curious to see what you think.
0 votes Thank Flag Link Mon Dec 3, 2007
HI Mario. It's really difficult to answer your questions without being in your area, but as a realtor, you probably know why the property has not sold. I' have encountered a similar situation before when a property I listed failed to sell at a specific price for over a year. I took it off the market for 2 months, painted it, bought flowers and things for the outside, and relisted it at 15K more and it sold within a couple of weeks. So you never know. Is there something about the property that turns people away? Sometimes it's the time of year, sometimes it's the area. Difficult to say. I would say to let it rest for a short while, improve the exterior a bit, and re list at higher price. Try it. Nothing ventured, nothing gained. Hope this helps.
Web Reference: http://www.9723nflora.com
0 votes Thank Flag Link Sun Dec 2, 2007
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