Home Selling in 60563>Question Details

Jeffrey Hunt, Home Buyer in Oswego, IL

10 Showings, 3 positive feedbacks, $8,000 price reduction....NO OFFERS!

Asked by Jeffrey Hunt, Oswego, IL Wed Aug 15, 2012

So my wife and I just had our 10th showing on our 2B 2B condo in Naperville, IL. Just about everything that can be updated is. New SS appliances, new counter tops, new woods floors, new carpet, new vanities, new base boards.......like I said, just about everything.

I spent the past year watching similar properties sell for $114,000 and $100,000 in only 30 days, yet my wife and I are at 74 days and $99,999 without even a single offer?

What should we do? My wife is expecting and we want to start our family in a home, not a condo.

Here is our listing....http://www.trulia.com/property/3086235176-1049-W-Ogden-Ave-2…

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Jeffrey Hunt’s answer

Unfortunately, our Condo board banned renting back in 2000 and does not have any plans to reverse that decision. It was our contingency plan until we found out that we couldn't. Now we are stuck until we sell.
0 votes Thank Flag Link Thu Aug 16, 2012
If you want I will be happy to rent it out for a year, while you contemplate your offers for selling at a later time. Just let me know wht is the minimum you would rent it out for?
0 votes Thank Flag Link Thu Aug 16, 2012
Hi Jeff,

I think your location would be great for an open house, if your Realtor hasn't already done one. I'm a firm believer in them and, of course, the more people through the better. Can you pay the first month's assessment? Just an idea, but someone might be short of cash after closing on a home.

Marianne Hofmann
Naperville, IL
Web Reference: http://mariannehofmann.com
0 votes Thank Flag Link Wed Aug 15, 2012
Hi Marianne,

I've googled our condo and I lost count at 20, being the number of sites our condo is listed on. Its even on HGTV! (Thanks to Rosemary). I agree that neutral paint on the family room and 2nd bedroom will go along way (realtor didn't think we needed to paint) and its one of the projects I plan to do in October / November (assuming we don't sell).

As for the unit that is contingent, aside from the granite countertops everything else in the unit is outdated (we looked at it). The new unit that just listed this week is also severely outdated and has mirrors everywhere (not popular right now). I guess I will watch those properties to see how it they pan out.
0 votes Thank Flag Link Wed Aug 15, 2012
Hi Jeffrey,

I am so sorry to learn of your frustration. Here's the scoop: A 2 bed, 2 bath listed for $89,000 with granite counters, fresh paint and new carpet is Contingent. New on the market is a 2 bed, 2 bath with new carpet, fresh paint, updated baths and new windows for $96,500. If you buy 1-2 gallons of paint (Walmart sells Kilz, a highly rated paint for around $20/gal) and neutralize the walls, your condo will look great. I don't know how much time you have, but if you paint and your Realtor does an open house you can see how things go. Now is your listing being submitted to the many sites available? My website submits listings to about 30 sites

Marianne Hofmann
Web Reference: http://mariannehofmann.com
0 votes Thank Flag Link Wed Aug 15, 2012
Selling a home is more like playing chess. You need to know who your competition is and what they are doing.

Surveys show that the average buyer looks at 20-30 homes before they buy. So when a buyer is ready to buy, they contact a realtor, they select properties to see. The information that you lack is what homes, that are your direct competition, are doing in your area. As the summer buying seasons draws to a close, you find yourself still waiting for a buyer, yet chances are a number of homes, like yours , have sold already while yours was on the market. The problem you have is that you don't know their selling price and which ones sold.

The truth is that if your home was priced correctly, it would have sold. The Realtors are not on vacation. They are showing buyers homes, and then writing offers. So the market it talking to you. It is saying you are not priced right.

Talk with another Realtor and get a current CMA on the property.

Hope this helps, please feel free to call with any questions.
Shahzana Ripp
0 votes Thank Flag Link Wed Aug 15, 2012
I also want to add that current market analysis has the price of a 2B 2B condo in Naperville right around $97,000 on average. Obviously that does not take into account the more update units but just the average selling price.

I tend to think our is more competitively priced then the other 362 condo's for sale in Naperville (yes you read that right 362) but I starting wonder if it will ever sell.
0 votes Thank Flag Link Wed Aug 15, 2012
Thanks for all the input so far. I wish I could say I have the ability to slash the price another $8,000 to $9,000 again but I don't. As it is right now, we had to put $10,000 into updating it and that does not take into account that my wife paid $131,000 for this condo just before the market crashed. All in all we are -$40,000 on this condo in only 4 years.
0 votes Thank Flag Link Wed Aug 15, 2012
Unfortunately, and I say this with the greatest amount of true sympathy, the market doesn't care whether you can't afford to slash the price. The market will only pay what the market will pay. If you put yourselves into the buyer's head for a moment, you'll agree... if there are other properties of comparable value, available for purchase, what possible motive would there be for a buyer to overpay for yours!?
Flag Tue Aug 21, 2012
Randy, thats where this gets REALLY ugly. Our condo board voted back in 2000 not to allow rentals BUT they rent out the units they foreclosed on (due to missed HOA payments). I already lost a buyer who said she was only interested if she could rent the property.

I have talked to the managing partner and they said if I got 2/3rds of the owners signatures we could repeal any decision made by the board but last time they did something like this it took 2 years to get answers from all the owners.
Flag Wed Aug 15, 2012
You're welcome Jeffrey. You may also want to talk with your Realtor and Attorney about some options should you not have the ability to take a further loss. You may also have the option of using this property as a rental, if allowed by your association and if by doing that it doesn't negatively affect your ability to finance your single family purchase. Speak with your Loan Officer about this before you go down this path. Guidelines have changed and you may not have this as an option with your situation. If you don't have a Loan Officer I would recommend you speak with Mark at Inlanta Mortgage in Oakbrook. His number is 630-417-7174.
Flag Wed Aug 15, 2012
oh... and I missed a third 2br currently on for $95,000.
0 votes Thank Flag Link Wed Aug 15, 2012
Alan May, Real Estate Pro in Evanston, IL
First of all I'm sorry for your frustration.

There is no "crystal ball" answer but typically homes don't sell because of price.

I would ask my listing agent for an up-to-date market analysis to make sure you're not over priced today, don't pay attention to year old sales.

I would also make sure your agent has your home marketed in more than just the MLS.

If you feel they are doing what they can to market your property then it really comes down to pricing.

Is your complex FHA approved. If not then you are excluding a large number of buyers in the market today.

If you need further assistance email me at EricHall@RealtyExecutives.com
0 votes Thank Flag Link Wed Aug 15, 2012
What you may be missing is the fact that you are not the only unit for sale, at the moment. There is at least one other 2br unit for sale (#302) at $74,900... granted, it's a short sale... but it's one of the choices that buyers have.

and there's unit 108 (another 2br), which is currently under contract that was listed for $89,000. That's going to impact your appraisal, even if you can manage to find a buyer.

Along with a handful of other 1 bedrooms, from $74,900-$89,900 currently on the market competing with you... just in case the buyer doesn't have to have a 2 bedroom.

And that's just in your own development! Forget the past year... concentrate on now. Talk to your Realtor and have him run a fresh CMA for you, and be realistic and objective.

Good luck!
0 votes Thank Flag Link Wed Aug 15, 2012
Alan May, Real Estate Pro in Evanston, IL

You should really continue to discuss this with your agent, Rosemary West of Re/Max. She has a great reputation for listing and selling property in your area and I'm sure is doing a great job marketing your property.

I understand your frustration especially in light of the desire to start your family in a single family home. Continue to dialogue with your Realtor, promote your home to friends/co-workers and request a weekly marketing log on where your home is promoted through your Realtors efforts.

Your home is promoted professionally on the MLS. The pictures look great and the description is accurate. I'm sure you'll have an offer soon as more people take a tour of your home.

Best to you and your wife as you start your new family.
0 votes Thank Flag Link Wed Aug 15, 2012
The Buyers are voting with their offers:
To begin with; it sounds like you are trying to do this yourself, no Listing Agent.
Then, do you think $99,999 is fooling anybody; it is kind of insulting.
Lastly, 74 days without an offer is screaming at you; are you listening?

check my blurb on 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 Wed Aug 15, 2012
Ron, I am listed with one of the premiere listing agents in Naperville with over 30 years of experience.

Also, how is $99,999 insulting anyone? The price was dropped to that number in order for it to pop up in more search's. Since dropping the price to that number, virtual traffic has tripled and we had 3 showings in a row.
Flag Wed Aug 15, 2012
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