If the property listing was originally taken overpriced, or if the property has been on the market for long, or even if it hasn't, if suddenly you are competing against a lot of foreclosures, short sales and REOs, perhaps that is what you need.
In fact, make sure you are NOT still "chasing" the market even after the $75k price reduction. To "chase" the market simply means that you are always priced slightly higher than where you should be and every time you feel prices are declining, you lower just above the magic number again in an effort to elicit an offer from which to negotiate.
However, as long as you are above the mark while chasing the market, buyers will invariably skip your unit unless somehow they get wind of your desperation and begin to low-ball you. It is only when you are at the point where the unit is getting seen (getting attention) that you increase your chances of an offer being made and therefore, your chances to finally begin negotiating for a contract. Until then (at least until you start getting constant showings), you may still be asking too much.
Today, condos are very soft. Did you know that in April, 2008 there were 25,555 condo units available for sale in Miami Dade County? (May figures should be out soon) . That's a lot of competition and this figure does not count the ones who insist they can do better without professional assistance, cancelled/withdrawn/expired listings that may be coming back, or REOs being put on the market by lenders/investors.
The bottom line is this. Sit down with your Realtor and take a hard look at the numbers in your area of Miami Beach. Compare notes with the activity in your building and evaluate the actives and solds. Listen to your Realtor and look at the transaction from a buyer's perspective (because THAT is what buyers do).
This market has turned into a price and beauty contest and buyers are expecting to get the best unit at the lowest price. This is how you would shop if you were buying today, and it is exactly how buyers are looking at your unit as they compare it to others.
Stay strong. This too shall pass.
Wenceslao Fernandez Jr, BS, CDPE
Best of luck,
or Palmetto Bay | Redland Real Estate | Maggie Dokic. They are both terrific real estate agents in Miami.
However, First thing you MUST do is ask your Realtor to give you an updated CMA (comparable market analysis). The CMA will give you what your house is really worth and what it should sale for compared to similar condos in your area.
If your house was initially "overpriced" then your Realtor may be looking for a drastic price reduction in order to fit with other homes for sale.
Communication is very important and you must discuss the details with your Realtor.
Real Estate Broker Associate
Licensed in NY and FL
After 30-45 days; then re-evaluate the situation and start fresh!
As Llyod mentioned your Realtor must have a valid reason.
As mentioned by Ines, have your Realtor do a (CMA) comparative market analysis to validate the price reduction. Make sure you get specifcs and that they compare apples to apples. An upgraded kitchen and a direct ocean view provide alot of value, however you must examine the rest of the unit, including condition of bathrooms and flooring.
We have certain triggers (as you know) to warrant a price reduction - no showings in a period of 10 days and no offers in a period of 2 weeks. I would ask you listing agent to provide you with another comparable market analysis since the market is changing every day.
Thanks Lloyd for the plug! : )