Home Selling in 01966>Question Details

Donna Chapman,  in 01966

What's the percent for a reduction in price? I am at $599999.00 and no offers as of yet. Should I reduce my price and how much?

Asked by Donna Chapman, 01966 Mon Jun 20, 2011

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Jim Armstrong’s answer

I actually saw your listing on MLS. The grounds and perennials are beautiful, and the interior photos are very nice, but it appears that your property is significantly overpriced. Mind you, I am basing this solely on MLS stats and I have not personally seen your home, but your asking price is the highest per square foot for living area of all homes currently listed in Rockport between $500K and $675K.

My humble opinion: if you want to sell your home by August, list it for what you paid for it in 2006 (at the height of the market) at $499K. Unless you have done significant work to the property since you purchased it, it hasn't gone up in value. Good luck.

2 votes Thank Flag Link Mon Jun 20, 2011
You should go & look at the competition. What are properties of like size/type currently on the market for & at your current pricing how does your property compare to others in the $600K range. You might re-do your market analysis to see what might have changed in the local market recently/since the time you listed.
2 votes Thank Flag Link Mon Jun 20, 2011
If it's over priced to begin with by 20% to begin with a 3% drop every 30 days will take 7 months to get in line!
1 vote Thank Flag Link Mon Jun 20, 2011
hi Donna,

Have you checked other listings (both sold and active) around yours? How different are between the original listing price / final listing price / sold price and the DOM on each listing? Did you check the traffic on your MLS record?

0 votes Thank Flag Link Thu Aug 11, 2011
To help you, you need to realize that right now your "agent" does not seem able to be objective. Most homes are worth about the same as 2005, if they are lucky. So go back to the lower of the 2005 asking price or paid price.

In our Santa Clara County (Silicon Valley) area, the listing must be reduced by 5% to be considered "new" enough for agents to re-tour.
0 votes Thank Flag Link Mon Jun 20, 2011
Thanks for all the responses. Yes there have been many improvements since I purchased the property. I had to finish all the renovations that were started. It is a totally turn key property. Nothing in the house is older than 6 years old, electrical, plumbing, windows, roof etc. So I am hoping to at least break even!!! An an ocean view to boot!
0 votes Thank Flag Link Mon Jun 20, 2011
As a rule of thumb for I like to drop in 5% increments. If your not getting the activity in a reasonable amount of time or you have had 12-15 showings with no offers, I feel you have missed the pricing by 5% or more.

Also in Rockport the average list price to sell price is 95% which tells us, in general you need to be with-in 5% of the sell price to secure offers. Market time across the board for the past year is 148 days. Hard to give you a firm answer without knowing all the details. I also feel an appraisal in 2009 really does not give us a good idea of what the market is doing today.
0 votes Thank Flag Link Mon Jun 20, 2011
It was appraised at $650,000 in 2009 and I started at $619,900. I went down to $599,999. and I haven't had a offer. I guess I'll do the $580,000 or do you think I should go lower? I am doing it FSBO because I have bought and sold 3 houses in the last 7 years and could have bought a house with all the commissions I have paid out.
So I'm hoping to sell and be in escrow pretty quick...have to be at new location by the end of August.
0 votes Thank Flag Link Mon Jun 20, 2011
It depend on how long is property on the market, how motivated is the seller, how much is similar properties are listed for, e.t.c. For start try to reduce the price for 10K every other week.
0 votes Thank Flag Link Mon Jun 20, 2011
The amount of price reduction is entirely up to you - but it should be based in part on what comparable homes in your area have sold for.

The largest land owner in the U.S. is ... the federal government (who else?). They have found that when they put a property on the market and it doesn't sell, they will lower their price about 3% in 30 - 34 days after the initial listing, and do so again every 30 - 34 days until sold. Usually a property will sell within 3 or 4 months by using this method (but not always).

That means with a listing currently at $599,999, you should reduce it by 3% - or down to $581,999. If it were me, I'd consider dropping it to a flat $580,000.
0 votes Thank Flag Link Mon Jun 20, 2011
You need to be objective. If it's your property and you are an agent you may want to ask some colleagues for their opinion.
0 votes Thank Flag Link Mon Jun 20, 2011
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