Home Selling in Midlothian>Question Details

Wendy, Home Buyer in Richmond, VA

Our realtor asked us to drop our house from 2.2 million to 1.9 million. We have been listed only 3 months.

Asked by Wendy, Richmond, VA Thu Sep 11, 2008

Should we drop our price so fast? Hour house is worth 2.5million but we thought we listed it at a fair starting point. We must sell by Christmas due to a job transfer. We have ONLY had 2 showings and no offers. Our realtor told us it would bring more showings, but would it bring an offer to the table at our new asking price?

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Answers

10
Wendy
The single most clear indicator of marketability of a property is showings. The rule of thumb is 10-12 showings will produce one offer. if there are no showings, it is unlikely you will see an offer.

The biggest problem I see with home sellers and their Realtors is unmet expectations. I suggest sitting down and looking at the market activity every week or so. How many new listings, how many homes have lowered their price, how many went into escrow., etc.

I also recommend that you as the seller take some responsibility and know your competition. The NAR buyer survey shows that they average buyer looks at 10-12 homes before they make an offer. So you should know what homes a buyer that might be comparing your home in terms of size, amenities, price, etc. Selling a home is more like playing chess than poker. If they lower their price, what do you do. If one of your prime competitors sells, what was the selling price, terms, etc.

A good Realtor will keep you informed of your competition so you can make the right strategic decisions.

Know that listing price is a MARKETING TOOL. Overpricing in this economy is not a wise move. I suggest to my sellers that they underprice . No showings, lower the price.

Good luck
1 vote Thank Flag Link Thu Sep 11, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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Wendy,

Sounds like the agent over priced the home initially and is now admitting it. Request the comps to suppport the recommended price reduction.

Good luck,
0 votes Thank Flag Link Thu Sep 11, 2008
Keep the house. It's not a good time to sell a house. Good Luck
0 votes Thank Flag Link Thu Sep 11, 2008
Sounds like you may think your home is worth $2.5M, but it's really not. Although you're in the high price bracket where properties take longer to sell, it has been 3 months and you've had 2 showings with no offers. And 3 months is not "fast" - that's the average days on market for homes to sell in the first place.

Did you ask the 2 buyers and their agents that came through your property for their feedback? What did they say about the price and how it compares to others they've seen? Have you looked closely at the comps (solds, NOT actives)?

And if you have to move by December, then you have to factor that into your strategy. Your wish to get more tha market value is not in line with your need to sell by the end of December (nor sell in the first place).
Web Reference: http://www.LoudounScene.com
0 votes Thank Flag Link Thu Sep 11, 2008
you are in a market of your own. being in the upper price level. in any price level people search within a certain price range, in yours it is likely 1.5 to 2 or 2 to 2.5, being above 2 you may be missing out on people not looking over 2 so i can see why he would seek such a drop. there isnt alot of movement in this price range these days so you are fortunate with even having people look. where you are hitting a time constraint, price will sell your home. go to 1,999,900 at least. good luck with your sale wendy
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Sep 11, 2008
It is undetermined on what will bring buyers and offers, perhaps offering an additional buyers agents bonus would attract more agents. Market has shifted many home buyers dont want to have that expensive of a home. Keep in mind mult-million dollar homes have limited buyers market thant homes less than $1 mil.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Thu Sep 11, 2008
In this current market, prices are changing daily, you may list your home at any price, but fair market value at this time changes frequently. Fair market value is really nothing more than what a ready, willing & able buyer is willing to pay for a home and what a seller is willing to sell for. Of the 2 showings you had, what was the feedback? Based upon the new price, how do you stand up to your competition? I am confident the reason you hired your Realtor was due to a level of trust in their abilties, expertise, and knowlegde! To Predict the Future , You must Create It! Best of Luck with your Sale.
Web Reference: http://www.frankcarollo.com
0 votes Thank Flag Link Thu Sep 11, 2008
In this current market, where prices are fluctuating daily, you may list your home at what may be fair market value at the time, but once listed, you may end up having other homes come on the market priced under yours, etc. Fair market value is really nothing more than what a ready, willing & able buyer is willing to pay for a home AND what a seller is willing to sell the home for. Have you asked the Realtor what the feedback was on the 2 showings that you have had? Does your home need to be staged? How is your home priced relative to the competition that is on the market - condition, price, staging? Have new homes come on the market priced under yours and/or offering more of what a buyer wants? Are price reductions being taken on a regular basis by other competitive homes? There are many reasons why a home may not have sold as quickly as you would like - your Realtor knows the market and if they are advising a price drop, if you trust the Realtor, then trust the advice they are giving you. Good luck with your sale.

Barbara Reagan - Long & Foster Realtors
0 votes Thank Flag Link Thu Sep 11, 2008
Wendy,

You're not alone in your questions or situation. There's some key things I would need to know before I say that a price reduction is mandatory, but based on your question, I would say that it's very likely you need to reduce the price. Here's why:

1. 2 Showings in 3 months - YIKES! You may be as much as 10% off, assuming that a 2 Million dollar home is common in your area.
2. You need to sell by Christmas. You really can't AFFORD to wait it out.
3. You think your home is worth $2.5 Mil. Not sure why, if it was worth that you would have had an offer already.

Price reductions are tough, but I agree with Bobbie, your Realtor should give you some compelling evidence on why you need to reduce the price.
0 votes Thank Flag Link Thu Sep 11, 2008
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
Contact
Hi,

I understand that making a price reduction, especially at such a large amount, is concerning at best. But your realtor should be able to show you the facts of record to support the necessity. What is the absorption rate in your price range? I mean how many homes are selling divided by the number of homes for sale in your price range. If that number is high the only way to counter it to comply with your timeline is through a price reduction. That opens the potential buyer pool to a wider number. Best of luck!!
Web Reference: http://www.BerkleyMass.com
0 votes Thank Flag Link Thu Sep 11, 2008
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