Home Selling in 01821>Question Details

Jonw, Home Seller in 01821

Property not selling. Price reduction?

Asked by Jonw, 01821 Thu Jun 14, 2012

Ok I bought a house in a great neighborhood. I gutted it and totally remodeled it! All the latest design features. I live in a relatively small town and I know all the properties in town that are for sale. I can truly say none look like mine style wise. During the brokers open the agents were blown away! When it went on the market it was shown nearly everyday for a month. But I haven't had any offers. It was $172,000. I lowered it to $168,000 a month ago and still nothing. When I bought the house I was originally thinking of listing it for $149,000. I didn't because the entire brokerage told me the house was worth more. I'm regretting it now. Should I lower it to my orinigal price or will it be bad for me to lower it by so much?

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Annette Lawrence’s answer
Your original goal was to list at $149,000. You listed at $172,000. That is about 15% above your intended price. That is 6% above the 'absolute silence' threshold. Clearly you need no additional advise. That, however, does not mean I am done.

Be aware, only a willing buyer and a willing seller will reach an agreement on the purchase and sell of a home. My impression is you have experience in the real estate business and understand your margins as well as strategic value.

You may be well advised to review with your agent at least three strategies to get this house sold. If all that is offered ONLY involves lowering the price, you are then in a difficult position.

At this point you will need to rely on YOUR negotiation skills and your apparent understanding of your local market. If your home is indeed 'The Prom Queen' of all the comparable real estate, you can make that work to your advantage. Employ denial strategies to get all those buyer in the house TOGETHER! You'll know what to do from there. (Read Ron's paragraph 3)

Best of success in achieving your selling objective.
0 votes Thank Flag Link Fri Jun 15, 2012
As mentioned, price is intended to attract attention to a property but there are no simple secrets to selling real estate....it's a matter of finding the right buyer for the right property.

The key is often, playing some feature(s) that draws attention to your property: location, lot size, proximity to amenities, updates, etc. Making these features the cornerstone for your promotion may make a difference.

Many people overlook key factors that are taken for granted and miss out on the opportunity of drawing potential buyers to the listing. Think outside of the box.

Good luck,

Bill
0 votes Thank Flag Link Fri Jun 15, 2012
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.

Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Fri Jun 15, 2012
so you went with a higher listing/asking price and now you find yourself, as I like to call it, "chasing the market" instead of letting the market come to you. As you probably already know pricing is one of the big factors in selling a house. At this point if you want to sell it quick you would have to do something a bit more drastic than just dropping 4k. You had a lot of curious people looking at the house and if it (market value vs listing) had been only a difference of somewhere in the neighborhood of 4k you would have received offers. I would have a conversation with your listing agent, if you are using one, to reassess your situation and come up with a plan to sell it quick. Everyday you sit on the market you are losing money, specially if this is an investment property. info@wenrealty.com
Good luck
Web Reference: http://www.wenrealty.com
0 votes Thank Flag Link Fri Jun 15, 2012
The best thing to do now that you have your listing is ask your broker to do some statistics for your area. If they are able to find out what the absorption rate is in your area, they will be better able to price your home appropriately. The market speaks to us daily and it is finding the sweet spot that attracts interest that is the key. Sales agents truly do want to sell your home so the company you are working with should be able to address your concerns and drop the price appropriately. Waiting it out in 1000 dollar increments is not usually a good thing unless you are not in a rush and are patient. I would have a long discussion with your sales agent and if you are still feeling uncomfortable with the advice or thought process, it may be time to look for another company. As a sales agent, we truly do want to sell your home for the top dollar we can and for most of us, it is not about the commission. It is about wanting our home owner to retrieve the hard earned money that they have put into the property.
Diana
0 votes Thank Flag Link Fri Jun 15, 2012
The lower the price the more interest the higher ultimate sales price. If you originally went with your gut feeling, you would of already sold it possible for more than the 149000

Good luck
0 votes Thank Flag Link Thu Jun 14, 2012
Hi -

Reducing the price to a "market price" is never a bad thing. Letting it sit for a long time hoping that someone will meet the inflated price is a bad thing. So my advice is to adjust the price based upon recently sold properties. Looking at the current inventory of comparable homes will also help you adjust the price to the right range.
0 votes Thank Flag Link Thu Jun 14, 2012
Jon, I don't see your listing in MLS for zip code 01821. Is it still on the market? There are 5 properties listed between 149,000 and 172,000 and all 5 have accepted offers! So it's hard to say what's wrong. Sounds like a good market for that price range.
Web Reference: http://ddrealtyteam.com
0 votes Thank Flag Link Thu Jun 14, 2012
Jonw,
Have your agent provide recent ( 30 days or less if possible) comparable sold property information. Then price your home as simialr homes that have sold (not the active listings). The active listings are your competition. If you offer the best overall value buyers will start to make offers. The bigest mistake most sellers make is overpricing their home for their market. You need to be listing that sets the pace for others and your home will sell. Most real estate markets are still declining so, the sooner you price your home right, the more money it will potentially sell for.

All the best,


Gary Geer

http://www.ggeer.illinoisproperty.com
0 votes Thank Flag Link Thu Jun 14, 2012
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