Home Selling in 22304>Question Details

Johnny, Both Buyer and Seller in Fairfax, VA

Price reduction

Asked by Johnny, Fairfax, VA Mon Sep 1, 2008

My house has been on the market for over 3 months. We are considering a price reduction. We are still getting 2-3 visits per week and just had two this past weekend. How do you handle price reductions when you just had two visits?

Do you wait to find out where the potential clients are at in their process?
Do you have our agent mention to them that we are considering a price reduction?

We don't want to lose these "potential clients" due to price but at the same time we do not want to lower the price if they are considering making an offer at its current price.

How do agents handle this situation?

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If you're getting 2 to 3 visits per week, you might not need to lower the price. (Maybe.) If you're not getting any traffic, that's a clear sign your price is too high. If you're getting 2 to 3 visits per week, but no offers, that's an indicator of other problems to me. Either, your home is not showing in top form (and perhaps there is a staging issue), or the market is flooded with similar homes. If there are similarly priced homes, you have two options: bottom out the price to be the cheapest guy with that type of house, or hang tough until you find someone who likes your tastes. Again, I haven't seen your home, but I don't think price is the problem. Your home might lack a certain appeal that you can' t see because you live there. Or, the market just has more sellers than buyers.

None of that answers your question.

To your question, once you have made up your mind to lower the price, the first thing you should do is call the folks who are interested and advise them that you are about to lower the price. This might induce them to make an offer before the price is lowered.
0 votes Thank Flag Link Mon Sep 1, 2008
Correction to my web site address (there was a typo)
0 votes Thank Flag Link Wed Nov 5, 2008
Hi Johnny: Sorry I'm just seeing this now, as I see you queried it on Sept. 1st. I'm wondering where you stand now with your sale. Also ... I'm wondering where your property is located.

This is an excellent question.... and to be honest this is a dilemma that Realtors often face as well. My advice to you is simple. If your property does not draw an offer within the first 2-3 weeks, it most likely is not at the proper price point. Please believe me when I tell you that every single time a property does not sell, it is a matter of price. That's a long blog that I think I will write soon . . .

In todays market, your agent should be monitoring the market WEEKLY is be certain that you are properly positioned. In our market area (Rockland County NY) there are a mere 2-3 offers per month now at any given price point. If my clients are not positioned properly, they will sit there and languish on the market.

My advice, re these 2-3 week visits is this. Have your listing agent contact the agents who showed the property for IMMEDIATE feedback. If no offer is in the wind (and trust me the agent will know) ... then you can feel safe that you are not leaving money on the table. You should be acutely aware of every single property that is in direct competition to yours and that has gone under contract and/or sold during every current week you are on the market. I do this for my clients. It is time consuming, but it is my job, and I would be negligent, especially in this type of market, if I did not provide that info.

Remember that we do not dictate to the market, but rather the market dictates to us.

Pick one day a week (I do Thursdays) and be sure you're up to speed on the market. Your realtor can help you with this ... be sure your price point is right in the sweet spot of where the last property similar to yours sold. Tweak, tweak, tweak. That is how you will be successful. You don't want some other property to be your competition...you want to be theirs. If you are not seeing an offer with all these showings the market (not your realtor) is telling you ... your are high. Tweak tweak tweak!!

Hope that helps . . . at least a little bit.

Angela
0 votes Thank Flag Link Wed Nov 5, 2008
If you've had consisent traffic but no offers, you're 3-5% over priced. If you've had very little traffic and no offers...you're 10% over priced. (In my opinion.) Properly priced and properly marketed, your home should sell within 97% of list price in the first 45 days.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Mon Sep 1, 2008
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
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What is the reason the people have not made an offer? Is there a common thread among them? No matter what the price is, if your property is appealing someone will make an offer even if crazy. Lowering the price may atract more buyers such as if you were ar 307,000 going to 299,900 will open you up to more people as many people search within 50,000 increments. However the first thing you should do is find out what people are saying after they view your home. Good luck with your sale Johnny
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Sep 1, 2008
Johnny,
Assuming you have access to the people that viewed your home recently, this is an excellent reason to be in touch with them....to announce a price reduction.

The fact that you are getting visitors is very encouraging....but with 3 months and no bites, this might be an indication that something is wrong.....a price decrease in likely in order.

Have your agent look a the comps for recently sold homes in your area. They may have changed since you put the home on the market.

Buyers in this market are looking for the DEAL they can't afford to walk away from. Your key is to figure out what this means in terms of your property.

Good luck,
The "Eckler Team"
0 votes Thank Flag Link Mon Sep 1, 2008
Johnny
Is your goal to net the most money at the close of escrow?
The rule of thumb is that homes that sell in the first thirty days on the market sell closest to asking price. To do that you need showings. We expect 10-12 showings or one offer in the first two weeks, or there is a price reduction.

Based on your post, you do not have enough showings. In my MLS homes that sell within 30 days sell at 100.8%m versus 93.8 at 120 Days on Market (and that is AFTER some price reductions.

Here is what to ask your Realtor:
How many homes, since your home hit the market, have:
1. Come on the market
2. Lowered their price
3. Entered escrow
4. Sold
5. Expired.

Homes are selling. The Realtors are not on vacation. They are selling the homes that offer the most value. The easiest way to increase value is to lower the price.

Good luck.
0 votes Thank Flag Link Mon Sep 1, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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