Home Selling in Arcadia>Question Details

Ironman1632, Home Seller in Arcadia, CA

Im selling a house in upper Arcadia & my agent wants to lower the price 4%.The house fell out of escrow a month ago.Is this reasonable?Any?

Asked by Ironman1632, Arcadia, CA Fri Oct 21, 2011

resources? Home was sold and fell out of escrow. Now the agent wants to lower price 4%. Would like some advice or statistics to merit a decrease. I personally don't believe it should because it has already sold and the price is lower than the rest of the houses in my area but I could be wrong...

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Ask your agent to show you why you should lower your price - what are the most recent solds and what is your competition - that is what other houses in your are are now on the market. There's nothing wrong with any house that the right price won't cure.
1 vote Thank Flag Link Fri Oct 21, 2011
If you have to come here asking this question, I would say your agent is not doing a good job communicating the rationale behind the price reduction. It could well be your agent does this out of frustration. It is very rare you have to take a 4% cut for a house that just falls out of escrow unless you are in a market with rapid deterioration. ask your agent why, and if you are not happy, maybe it is time for a new agent.

MLSUnlimited - http://www.digi-go.com/mls/
Sell Your House Fast w/ Flat Fee FSBO MLS Listing
0 votes Thank Flag Link Mon Oct 24, 2011
Hi IronMan . I am a Realtor in Arcadia. I wish I could get more info about your specific situation as you don't provide enough details to give you an informed answer. For example, I'd like to know why it fell out of escrow. Financing issues? Appraisal? Buyers cold feet? Also, without knowing the details of your home and the price, I have no way of knowing whether the current asking price for your property is reasonable or not. I see many houses that are priced over the market and ultimately need to be reduced in order to find a buyer. Sellers understandably don't like doing this and often believe their home is worth more but it is the market that ultimately decides what things are worth. To know whether a price cut is necessary, your realtor should be giving you information on comparable recent sales to show what houses like yours have been selling for. He or she should have information to back up their advice. This isn't just about throwing darts at a board. They need to do a proper analysis based on proper data. Ultimately, your real estate agent should be giving you this information and educating you about the current state of the market. I'd advise you to speak with them first and get them justify their recommendation. They may very well be right, but they should be able to show you proper data and analysis to back it up. Whether its reasonable or not all depends on the details. Hope that helps. Feel free to ask anything else if you still have questions.
Web Reference: http://JenniferMu.com
0 votes Thank Flag Link Mon Oct 24, 2011
You stated that your property is the lowest in the area, It does not make sense to me to drop the price, but read on.
The best way usually to list a home is based on SOLD properties in the area.
If the properties are going down you may want to go down as well. Only base it on sold homes in the area. Your agent should send you auto emails of the homes in your track so you are informed and have an idea of what is happening to keep you in the loop. Heck even if you dont have your property for sale you should ask an agent for auto emails so you always know your homes value. Keep in mind square footage of the dwelling first and land second on track homes.
If no evidence to support the price drop, and you are patient, then don't.
If it is a short sale, the price should not be a lot of an issue to you at this point.
I think it is wrong to tell a client to drop their price by xyz amount. I think it is better to show the client the numbers and let the client come up with their own opinion. If they ask for suggestion I will give the suggestion. Maybe if the agent says Just and FYI, the last two homes similar to yours in your area just sold for 275,000 and you are still at 300,000, you may want to consider a price reduction.
Every agent does it a little differently.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Sun Oct 23, 2011
ask agent his/her reasons to justify a price adjustment. obviously with your asking price, you received an offer, went to escrow. was the accepted price close to your asking price? 2 things I could think of to justify a price adjustment: lower comps or solds, and cost of repairs.
your agent has the right resources to help you decide. good luck with the sale.

Myrna Averia
Web Reference: http://www.myrnaaveria.com
0 votes Thank Flag Link Fri Oct 21, 2011
Hello Ironman,

You can request your realtor to give you the market sales comparison to validate their reason for a 4% price decrease. Also, a very important matter that you need to discuss with your agent is why did it fall out of escrow the first place? (i.e. loan appraisal issues)

I suggest speaking to your realtor directly with your concerns and have them pull the data in the area for you.

Thank you,
Jonson Nguyen
Coldwell Banker George Realty
(626) 456-1911
0 votes Thank Flag Link Fri Oct 21, 2011
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