Banks "need" to sell their homes. They are not supposed to be in the home ownership business. Keep in mind that there are a lot of homes on the market. The number of homes on the market in your neighborhood will affect the ability of your home to "stand out." So, you could have your agent run another market analysis looking at the items that will drive your price. If your home is not in as good condition as the ones that are selling, you have two choices. Fix yours up and match the prices of the comparable homes sold, or reduce your price under those sold to be the "next" sale. It all depends upon your motivation to sell.
Thanks for your input. Good point about the appraisal contingency. My realtor mentioned one experience where his sellers had to lower their sales price quite a bit because the property didn't appraise at sales price. In this market, I certainly can't imagine a buyer being willing to put down more cash!
I did read about short sales. and I'm quite sure I wouldn't qualify (e.g., no hardship, sufficient assets, etc.).
It does boil down to needing to sell versus wanting to sell!
The appraisal is an unbiased estimate of value by a state licensed Appraiser, and is the report what the buyer's lender uses to measure the value of the house for lending purposes. There is an "appraisal contingency" in the California Residential Purchase Agreement, and unless you have an all cash buyer, the house generally must appraise at or above the purchase price. If the house does not appraise at or above the purchase price, then the buyer can (a) pull the plug on the transaction, (b) ask you to reduce your sales contract price to match the value of the appraisal, or (c) depending on their loan-to-value ratio, add more cash to the downpayment to satisfy their lender's requirement. If you were a buyer, which option would you push for?
I agree with the others...if you do not have to sell, right now is not the right time to test the market. If you do have to sell, you will want to seriously consider lowering your price to be competive with the other short sale and bank owned listings in your area...or you may consider doing a short sale.
Good luck to you.
I appreciate that you are very direct with your advice. You are right -- I don't think I can meet all of the criteria necessary to be successful in this market. I will certainly reconsider my goal to sell at this time since I don't "need" to.
Thank you for chiming in, and for the good wishes. My price drop should happen pretty soon, and hopefully that will bring activity.
This is not an act to cover for or make excuses for another agent. But it takes time to set the wheels in motion. Three weeks is normal time frame for putting everything in place so to expect anything before this is unfair.
It's the next three weeks that you should pay attention to. If inactivity is the theme you should evaluate your situation. The rule of thumb is no showings......lower the price, showings and no offers.....lower the price.
Short sales and foreclosures are creating the "new market" and cannot be ignored. To do so will only serve to extend your hardship and prolong the inevitable.....dropping the price.
Thank you to all three of you for responding!!
Paula -- I am in the Greenhaven/Pocket area. No opens yet, but a couple of broker tours. Sadly, I don't think single person came by during the tour days. Good point about needing to the THE best price as opposed to being in the general price range.
Elizabeth -- I read a TON of your house-selling articles on about.com and found them very helpful! Thanks so much for writing them, and for the great info on your blog! I believe I learned from your articles that the first several weeks are so important, which is why I've been on pins and needles these past weeks. I am priced below $300,000 and am considering a price drop. But I am skeptical about whether that will even make a difference, because it still doesn't put me in the range of the REOs/short-sale folks. I am fully prepared to lose money on this sale, but there is a limit to how much I can afford to lose. So, unfortunately I can't match those prices.
Sue -- Yes, I am learning very quickly that it's all about price! I thought that buyers cared about whether properites are bank-owned or not, but I guess this isn't necessarily the case.
I will hang in there longer, but realistically I may just need to stay put. Thank you again, ladies! I appreciate your time.
If you have lots of showings and no offers, I would say it's staging, and pricing at the condition of your home. But when you have no showings, it's Pricing and the demand in that price range.
The answer is always price. There is no distinction in the market between bank owned, or seller owned properties. Short sales may have less attention because there is still inconsistencies on which ones are legitimately approved by their lenders, but ....even the worst kept homes will sell for the right price.
So if you're over $400,000 you may have to be lower than competition to attract the smaller pool of buyers in your market. It may seem like that's a lazy answer but it really isn't. It's the basic supply and demand dilemma.
Not knowing where you are located, I am a little in the dark, but I will suggest a couple of things. First, yes...it is unusual to not have any showings in 3 weeks. Has the house been held open or has it been on a broker tour? These are two actions that would help. You may not be in an area where brokers will show up for a broker tour, but certainly you would have results with an open. In this market, and with the number of REO's you say you have in your area, you must be the best house at the best price. You can't be IN the price range, you have to be THE best price. I wish you the very best!