Home Selling in 33140>Question Details

Lois K. Gell…,  in Hollywood, FL

My real estate agent wants to shock the system...which means lowering the price of my Miami Beach condo by

Asked by Lois K. Geller, Hollywood, FL Sat Nov 10, 2007

$75,000. Is that a shock to the system...or will it look like a fire sale with its brand new kitchen and ocean view?

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Without knowing the details (building name, time on market, competition for sale and sold, etc), it is hard to say. However, if you picked a trusted professional, trust his/her recommendation.

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and this figure does not count the ones who insist they can do better without professional assistance, cancelled/withdrawn/expired listings that may be coming back, or REOs being put on the market by lenders/investors.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
0 votes Thank Flag Link Mon Jun 2, 2008
Thank you so much for your sage advice. It has been sold at a bragain basement price and two of the same units were sold 2 weeks later for over $75,000 more than mine. Realtors sometimes lower the price for a quick sale?
Flag Wed Mar 21, 2012
Since, we do not know the comps or most recent sales it is hard to say if a $75k price reduction is necessary. I do feel strongly about one thing, I'd rather my clients list at bottom line and refuse 10 offers than get none. You can't negotiate a contract you never receive.
Best of luck,
Susan Walker
2 votes Thank Flag Link Sun Nov 11, 2007
Lois: there are many factors.First how does your property compare to not only these in your complex and area but to these sold in the last 2 months. There are a few rule of thumb: your condo should be listed at the lowest or near the lowest price within your comparable in Miami Beach in the MLS. Either your real estate agent feels that your condo is overpriced or thinks that if you haven't had enough interest and you have to do something drastic.$75,000 looks a lot but it depends how much you are asking in the first place. The bottom line: how much did the last one sold for.Your agent must have a reason.He/she is there to sell your condo. For more information contact Ines at Rick & Ines - Miami Shores Real Estate
or Palmetto Bay | Redland Real Estate | Maggie Dokic. They are both terrific real estate agents in Miami.
1 vote Thank Flag Link Sat Nov 10, 2007
I will need to know more details to give you a better answer to your question.
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.

Good luck,

Gisele Zachar-Nashelsky
Real Estate Broker Associate
Licensed in NY and FL
facebook.com/sellinginmiamibygisele
0 votes Thank Flag Link Tue Mar 27, 2012
I am a Florida licensed professional in Naples; so though not familiar with your area I am sure that your agent has presented you with the current comps and based their request on this information . Sit down and talk to your agent again if you did not understand.
0 votes Thank Flag Link Wed Mar 21, 2012
The system would most likely not be "shocked" at all~ There are many price reductions and increases everyday! Perhaps removal from the system would have a far greater benefit, honestly.

After 30-45 days; then re-evaluate the situation and start fresh!
0 votes Thank Flag Link Thu Dec 20, 2007
Hey Lois,

Any updates on the price reduction? Let us know.
0 votes Thank Flag Link Tue Nov 20, 2007
$75,000... wow!
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.
Good Luck!
0 votes Thank Flag Link Sun Nov 11, 2007
Lois.....

Maybe the shock and reduction in price will generate multiple offers and sell for more that it is listed for. A bidding war is great for raising the price. Good luck.
0 votes Thank Flag Link Sat Nov 10, 2007
Pam Winterba…, Real Estate Pro in Danville, VA
MVP'08
Contact
Even if it looks like a fire sale, does it matter if your home is sold? I'd say give it a shot. The market ultimately sets the price. If the new reduced price is too low, youwill get multiple offers, hopefully get into a bidding war, and get a fair price. Good luck!
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sat Nov 10, 2007
The Hagley G…, Real Estate Pro in Pleasanton, CA
MVP'08
Contact
Do you want to sell or don't you? If you have no offers on the property and you want to sell quickly, you need to reduce the price. The more you reduce, the faster it will sell. If you can afford to wait around, then reduce at a slower rate. I don't follow Miami market closely but if you read the popular media it seems like the Miami condo market is virtually dead. You, therefore, need to do something dramatic to draw attention to your property. There is nothing more appealing to a buyer than a property that appears underpriced relative to the market as a whole.
0 votes Thank Flag Link Sat Nov 10, 2007
Hi Lois - "shocking the system" is a common "Coldwell Banker" technique when you see no movement with the sale of your property. You know that pricing is part of the marketing technique and if overpriced to begin with, the reduction may be a good idea.

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! : )
0 votes Thank Flag Link Sat Nov 10, 2007
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