Home Selling in Joliet>Question Details

Setongirl, Home Seller in Joliet, IL

My agents keeps asking me to lower my price on the my house. I can't take a beating, it has been on the market since Oct. Now she wants me to

Asked by Setongirl, Joliet, IL Tue Jan 26, 2010

lower to 279,000. Asking 290,000.

Help the community by answering this question:


Homes sell every day of the week...just not yours. It comes down to 'positioning'. When you bought you home you probably looked at a few homes...let's say ten. By default, one was the best, one was the worst and the rest fell somewhere in the middle.

If a buyer is looking at ten homes similar to yours, is your home the best positioned home? When you bought, you didn't buy the home that was in last place. You didn't by the home that was in second place (at least most people don't). Instead, you bought the home you thought was the best, based on what you're looking for.

Unfortunately, Realtors only know the 'lower your price'. While this is true in many cases, it's foolish to believe this without seeing what the marketplace is doing.

For example, let's say your home is in the Cathedral area. If no other home has sold in the Cathedral area then it might not be a price issue. Instead, it could be a location issue. What is the average marketing time in the Cathedral area is 270 days. Well, you're nowhere near that.

Before you can make any decision on whether it's price or not, you have to understand the market. Did your agent show you ten similar homes for sale that a potential buyer might look at along with yours? Do you know exactly how many homes have sold in the last four months? How much inventory is on the market. If there are ten homes on the market and they are selling at a rate of one per month, then you have ten months worth of inventory on the market. Many areas have over two years worth of inventory.

The bottom line is you probably do not have the answers to these questions. Therefore, we don't know for sure what the issue is. Once you understand the market and all it's variables, only then can you decide if it's a price issue.

To just lower your price is irresponsible and possibly not needed.

Here is an article I wrote that is published on Ezine Articles. Hopefully, this will help you. http://ezinearticles.com/?id=3024529.

In the mean time, are you getting your value's worth from your Realtor? If not, demand less commission.
0 votes Thank Flag Link Tue Jan 26, 2010
Hi. I guess you need to look at the activity you have had on your home and analyze the feedback you have received to this point. Also take a look at how and why you originally priced the home and compare to the current market conditions. Joliet values have "slid" backwards at a rate of 1.5% / month for the past 10-12 months. You have to look at all the factors involved in your sale. Particularily the price but contributing factors such as your internet prescence your ability to get in front of the other agents and your "saleability" to current buyers. I have been full time in the Joliet market for 21 years and have sold @ 700 homes in that time. I beleive some of the things I do are hands down different and more"results oreintated" than what you see in the market. At the end of the day it comes down to price but there are a number of marketing factors that cannot be ignored. Good luck.
Bryan Kasprisin
1 vote Thank Flag Link Tue Jan 26, 2010
focus on the number of months of listing inventory there is on the market in your price range. The larger the inventory the more you need to review the price buckets to understand how you can sell your home.

Example: 10 listings with an average of 1 sale per months leaves you with 10 months of inventroy. Maybe if the price is reduced the number of months of inventory will be less and generate a quicker sale.

So look at what has sold and what is on the market in:

290,000- 300,000

See if there is a difference between the price buckets and current inventory.

Keith Manson
First Weber Group

Certified Distressed Property Expert

Metro Milwaukee

0 votes Thank Flag Link Sat Jun 12, 2010
It's been almost five months since your most recent response. Hope you've sold since then. If not, then the others are right: if a house isn't selling it's probably the asking price. Either it's too high for the market or the condition of the property doesn't support the asking price. A lot of property is "under water" these days. So, you're in plenty of company. If you still haven't sold, consider strategies like lease option and rent-to-own. If the foreclosure dragon is rearing its head, consider a short sale, but be careful to get documentation from the lender stating that they will NOT pursue any deficiencies. Find a short saler who knows what he's doing. Agent have told me of recent (circa. June of 2010) that the "sweet spot" in the market is the $150k to $199K range, for what its worth.
0 votes Thank Flag Link Sat Jun 12, 2010
Setongirl- When you reduce your price by $11,000 - it reduces a prospective Buyer's monthly payment by $58.00 per month. So, I am sure you will agree that although it's a pretty big hit for you...it does not increase your market potential and expand your pool of potential Buyers by very much. When it comes to price reductions. ... One big bite is far more effective than a bunch of little nibbles.

If you were to reduce your price to $279,000 + offer a $5750 Concession package that a Buyer could use toward closing costs and/or an interest rate 2-1 Temporary Buydown (where the Buyer saves $315/month the first year and $162.25/month the second year) that may be more enticing for potential Buyers.
To create a competitive edge in this market you need to think outside the box.
The lure of the prize is often the catalyst for the sale. Good Luck!

Calculate small cost for the Seller & HUGE savings for the Buyer:
0 votes Thank Flag Link Thu Jan 28, 2010
I understand your frustration. Alot of seller's take it personally when we agents ask you to lower your price "Again". Alot of times you think we control the situation, but, in reality, it is the buyers who determine your current value. If you have had SEVERAL people preview your house, and no offers, it is probably off by upto 10% . If you have had NO people preview your property in 2 weeks or more time, you are off by at least 20%. The buyers are giving you a signal that your property is not competitive to what they are currently seeing out there. Take the clues they are giving you and adjust your price accordingly. Best of luck.
0 votes Thank Flag Link Tue Jan 26, 2010
Know your competition- current and sold- Your agent can provide this info.How many have sold in this price range since you have been on the market? Have you had that many showings? If not perhaps the home is so obviously overpriced as to have alienated potential buyers just by the pictures and location. The house will have to appraise to sell. The best house in your price range will be the next to sell. Have you done all you can as far as maintenance and condition to be the 'best'? When considering your bottom line don't forget to figure in as a negative how much each additional day on the market will cost you in terms of additional - mortgage, taxes and insurance. One last thing that really should have been the first thing as a seller you considered- Are you confident that your home is being marketed competently with consistent exposure. Your agent can provide a list to you of all marketing efforts.As a very proactive agent myself I understand that I can ( and do ) lead a lot of horses to the water but I don't get paid until they drink! Also know that while you may feel that you are taking a beating in the market so too is the seller you are buying from..
0 votes Thank Flag Link Tue Jan 26, 2010
If you haven't received an offer since October then your agent is correct and your house is overpriced.
Web Reference: http://www.lennyfrolov.com
0 votes Thank Flag Link Tue Jan 26, 2010
Good Morning Setongirl,

I really do understand your dilemma, a lot of home owners are going through the same situation. I am presuming your agent has done a Comparitive Market Analysis of your neighborhood and that is why they are asking you to reduce the price. If not, then ask them to do that for you so you can see what homes are truly selling for.
Your agent really does want to help you to sell, just sit down with them and really talk about your concerns and ask questions.

I wish you the best!
0 votes Thank Flag Link Tue Jan 26, 2010
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