Home Selling in Newhall>Question Details

Moon, Home Seller in Newhall, CA

our house for sale in So. Cal, no offers yet. Do we keep lowering price or do upgrades. sell price 720,000. We need to sale house do to unemployment.

Asked by Moon, Newhall, CA Sun Aug 21, 2011

House value approx. 700,000. square foot 3,100.

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26
Barry lives in the Ca. area so I am assuming he knows your market if that is accurate his advice is exactly what I would say. The fact that you are both not working makes selling it sooner rather than later imperative before all your funds are depleted & you are forced into bankruptcy. Meeting with your bank is important as communication is paramount in a case such as yours. One thing I would add to Barry’s remarks is that you should check all recent sales in your area and make sure the home is uncluttered with furniture & knick knacks as well as keeping the yard up. The sizzle in selling is all important.
Lots of luck,

Ira Bloom
Broker
Bloom Realty Investments LLC
5125 Admiral Pl
Sarasota, FL 34231
direct: 941-587-3509
Fax: 941-924-4470
e-mail: i.irabloom@verizon.net
web site: http://www.bloomrealty.net
1 vote Thank Flag Link Thu Sep 29, 2011
Price it at $650,000 and have a 2-week only sale!!! Do not respond to any offers until day 14. Now you will hopefully have a multiple-offer situation (2 or more Buyers). Counter all buyers with 'highest and best' and your home gets SOLD in the quickest time at a price determined by the marketplace. Do it today -- don't wait! The Holidays are right around the corner. So, it's time for for your listing to go from SO OLD to SOLD!!! PS... Call your bank and explain to them your situation -- let them know you expect to have a Buyer for your home in 2 weeks and close escrow in 45 days from today.
1 vote Thank Flag Link Tue Sep 27, 2011
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.)

We have found that extremely often, the LISTING PRICE that is set on SHORTSALES and REO’s are not determined, nor even discussed with the Bank: The banks play their cards very close to the vest, they will not tell the Listing Agents any more than they have to; they will not give us their lower limits. So usually, the LISTING PRICE on a distressed property is a number taken out of the air.

If you are considering a property, have a Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. If you look at enough CMA’s, you will see the trends.

So, at this point, you have two choices:
Keep lowering the LISTING PRICE until you get an offer, or,
Call a Realtor.
1 vote Thank Flag Link Sun Aug 21, 2011
Hello Moon,
Sorry for you are experiencing these difficulties.

My suggestion is to speak to an agent who is local to your market - preferably several agents.

Advantages of using a professional:
1. An agent can present a strategy for getting your home sold quickly.
2. An agent can give you the marketing muscle you need in this very difficult, price-driven environment.
3. And, as others have offered, an agent can suggest things you can do to stage your home.

Price is critical. Price brings buyers to look. Staging is what sells your home.

I do appreciate that you're driving a lot of energy into job searching. The hunt is a full-time job and you may need to dash out the door instead of vacuuming before heading out. This is all the more reason to move your property quickly. The situation you are in can be exhausting. I urge you to hire an agent as soon as possible. Give your home selling project a full-court press and put it behind you.

Final note: Make sure the agent is a good communicator - someone you are comfortable with.

Best to you,
SuZ
PML
of Longmont, CO
0 votes Thank Flag Link Sat Oct 1, 2011
Hi Moon,

Although I do not work in your area, I do work in Southern California so I thought I would throw in my advice. My first recommendation is not to spend money on upgrades - there are things you can do for no money, or very little, and these are what I would focus on at this point. Make sure your home is clean and de-cluttered. Open window dressings to let in light. The entrance to your home should be inviting - planting flowers is usually a great idea, or if you do not have an area in which to do so, you can place some potted plants strategically. Remove personal photos from walls and items from countertops, and place a few vases of fresh flowers around. Buyers want homes that show well, so they can imagine moving in and visualize their belongings in the home.

Of course I have not seen your home, but even if it shows well this is a difficult time to sell. If you are getting lookers and no offers than the first thought that comes to my mind is that it may be priced high. You need to discuss the comparables with your Realtor and really price your home aggressively. These days buyers are very savvy - they have access to information on the internet and they know whether your home is overpriced. If so, they may not even come and look at it. It used to be that they would come and make low offers, but these days I see less of that. If a home is priced right, you will likely still get a low offer, but you do need to get those buyers INTO your home. If your agent has not yet had one, a broker open house is a great way to get feedback from brokers and agents.

Sit down with your agent and listen to her/his advice, and make a marketing plan that will get you the maximum exposure, and a showing plan that will make your home look it's best.

Best of luck,

Rachel LaMar, J.D.
0 votes Thank Flag Link Sat Oct 1, 2011
Moon,

In doing a quick check for Newhall CA your value is twice the average market value for the area.

Depends on the improvements that are needed? Feedback as to upgrades does not sound like that is what is stopping people as if they liked the house they would make an offer on it. Price is typically the key factor that motivates buyers. Condition will effect price.
0 votes Thank Flag Link Sat Oct 1, 2011
There are lots of "upgrades" that you can do that don't cost much money. Here a few pointers: neutralize the colors, paint is the biggest bang you can get for your remodeling dollars. De-personalize the home by removing family pictures, this helps buyers visualize themselves in the home and not your family. De-clutter the house and stage it to look spacious and roomy. Get advice from a friend who's good at decorating as to how to re-arrange the furniture, it can change the whole feel of the room. Most of all, keep it clean and free from any pet or smoke odors. The bottom line is that if you aren't getting any showings that the price is too high. If you are getting showings but no offers, then buyers aren't liking what they see and you may need to make some improvements as noted above. I wouldn't recommend putting more than 5 thousand dollars in the house unless you have serious repair issues like a roof leak or damp basment. Most buyers will request you to fix serious issues anyway. My advice would reduce the price by $10,000 every three or four months until you start seeing some interest. Keep in mind the winter is typically the slow season as most folks are busy with the holidays. I advise many of my clients to spend the money to get a certified appraisal, rather than a free market analysis. You may sell your home for $720K but if it will only appraise for $650 then you are back to square one. Hope this helped you some, best of luck!
0 votes Thank Flag Link Thu Sep 29, 2011
The key market factors to selling a property are Location, Competition, Market Condition, all which we cannot control, and Condition of the Home, Marketing, Terms and Price, which we can control. Your agent should have provided you with a Market Analysis of homes on the market currently and sold in your area in the last 6 months. You will have printouts of the size, location, condition, upgrades, amenities, views of these homes so you know exactly what has sold and what your competition is. That will give you and your agent a basis for setting the price. 10% below market value will get that sold. Is the home accessible on a daily basis? How is the marketing, advertising, open houses, number of people who actually look at the home? If you are dissatisfied with anything and your current agent does not seem to be working out, don't hesitate to get a 2nd (or 3rd opinion) from another agent or broker. These are free. Just call for a "Comparative Market Analysis".
0 votes Thank Flag Link Thu Sep 29, 2011
When selling a home there are internal and external issues that all factor in to the ability to sell your home. Is it updated, does it back to power lines, electrical, sewer or other concerns? Is the floor plan unique or difficult to navigate? Is it an older home? Are there repair, deferred maintenance or faoundation issues? Once you as the seller has tried to limit ALL of these factors, if the home is NOT showing price may be the only issue. In the higher end markets, buyers are having difficulty obtaining mortgages and getting through the process. A quality, experience Realtor can answer all of these questions and honestly assess the issue and provide the right fix. Price is always a major factor. With unemployment you may not have an option but to just get out and price will help you do that!
Web Reference: http://www.GetRossNow.com
0 votes Thank Flag Link Thu Sep 29, 2011
Dear Moon,
It's hard to say exactly what the problem is without being able to actually see the property in question. Just generally speaking, you are in competition with Short-Sale and Foreclosure properties, which drives the prices down on all homes for sale. You need a good agent, and you need a very good CMA and marketing plan.
Buyers are looking for a home they can move into, without having to do a lot of work. If you home needs repairs I would recommend you take care of those in order to make your home more attractive to buyers.
0 votes Thank Flag Link Thu Sep 29, 2011
The first thing you need to do is have your agent complete a broker price opinion so you can see what the current market value of your house is. make sure your price is at or just below that value less any repairs that are needed. Lowering your price every month means nothing if it is still over priced.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Sep 29, 2011
Thank you Ira... I like what you referred to as "The Sizzle in Selling" ... Buyer's often need an incentive and sellers can offer one in their marketing approach.
0 votes Thank Flag Link Thu Sep 29, 2011
Moon,

Although I am in Naples, Florida your question and answer will be very similar. I could probably answer your question better if your agent could send me a copy of the MLS.

How long has your home been on the market, have any homes sold in your area. Perhaps you need to remove the listing from the market, give it a rest. Ask your agent to go over the comps with you; it is a hard market perhaps some type of buyers incentive at closing?

Good Luck!
0 votes Thank Flag Link Tue Sep 27, 2011
Moon, are you still with us? We'd sure like to hear from you.
0 votes Thank Flag Link Tue Sep 27, 2011
Moon,

Just checking in, with all the good advise below, did you sell your home?

Sean Seckar - Realtor
RE/MAX of Santa Clarita
661-644-2945
DRE License # 1336429
Web Reference: http://www.SeanSeckar.com
0 votes Thank Flag Link Mon Sep 26, 2011
Unless property values in your local real estate market are going up, lower your asking price.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Tue Aug 30, 2011
Moon -

Did your Realtor give you a printout of local comps comparable to your property or did you set the price? People are looking for a "deal" so you absolutely must be competiive! How many open houses/broker opens have you had? How is your property being marketed?

One thing I'm seeing valuable is a seller buydown - meaning the seller is willing to pay points so the buyer can get a far lower interest rate. Ultimately, buyers are interested in their monthly payment.

What are you willing to do to attract the right buyer? What is the advantage of buying your home vs buying someone else's home? What incentives are you willing to give to attract a buyer? Give this some thought.

If I can be of assistance, please call me at (661) 255-3335.

Cheryl Garner, Mortgage Expert
Fairview Mortgage Capital, Inc.
DRE-01262285 NMLS-295929
0 votes Thank Flag Link Tue Aug 30, 2011
One more vote for lowering the price. If you are unemployed, every month you hold the home costs you double - your actual expenses (mortgage, interest, taxes, utilities, etc.) plus any deferred income you could be making if you were living elsewhere and working.

Also, if you are not bringing in any money, spending money you don’t have on improvements trying to get additional money you probably won’t get is not good accounting … at least in my books.
.
0 votes Thank Flag Link Sun Aug 21, 2011
Keep lowering the price. Money spent will not likely be returned in this market. Feel free to call with any questions.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Sun Aug 21, 2011
Look at your home on Trulia.com. Look very carefully at the pictures your agent took. Are they clear, fuzzy or blurry or in bad light? Is the sunlight hitting the front of the house (if not retake), does the house look cluttered? If so, unclutter it.

Make sure the pictures are taken from the best possible angle, multiple kitchen pics if possible, multiple backyard / side yard pictures, color saturation is your friend.

There is nothing worse in the MLS than seeing BAD blurry, ugly pictures & believe me I see a lot of them & think "what the heck is the agent thinking to publish this crap, in this price range", but it does happen.

Put your price at $699,900 today. If you're on here asking us about lowering the price, then you have no offers at $720K, no one wants it at this price.


EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors.
0 votes Thank Flag Link Sun Aug 21, 2011
Hi Moon,

Have your Realtor do a current Comparative Market Analysis (CMA) using SOLD comps within a 1 mile radius of your property (the closer, the better) that have SOLD within the last 3 months. This will give you current market value and this is what your list price should be based on. You state the value is $700K but you have the house listed at $720K. If in fact the value is $700K (based on the current CMA your Realtor should do), list your home at that or a little lower to general interest. I personally don't suggest doing upgrades - in this market you usually don't get your money back and if your house ends up not selling, you've definitely thrown money away which you don't want to do.

Good luck!

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Sun Aug 21, 2011
Moon, desperate time sometimes require desperate measures. You need to do whatever it takes including a short sale if you're unemployed and can't make the payments. But don't go down the foreclosure road. That will haunt you for sometime to come. And don't keep throwing good money after bad. If you don't have a golden goose out there somewhere to help you out until you get back on your feet you need to do what ever it takes short of foreclosure.
0 votes Thank Flag Link Sun Aug 21, 2011
Definitely lower your price. Homes that have sold in Santa Clarita over $700K is much less than homes below that treshold.
I would also have professional photos done on your property as well. Make sure your home is showing on multiple web-sites. A lot of times Newhall gets over looked in our area because of Stevenson Ranch and Valencia as a high end neighborhood. Make sure your agent is promoting in constantly as a desirable place to live not far from the freeway in the desirable Happy Valley area.
Also if you are appointment only many agents find this difficult for showings so I would we consider this.
Best of luck to you.
0 votes Thank Flag Link Sun Aug 21, 2011
You must lower the price. That price range has the lowest amount of potential buyers. I would recommend that you lower price and maybe have your listing agent change his approach. I rather have you see the home quick due to your circumstances then try to get max price. Good luck.
0 votes Thank Flag Link Sun Aug 21, 2011
Moon,

The guidelines for selling property are not complicated:

no showings, lower price
no offers, lower price
no accepted offers, lower price

Additionally, assuming major renovations and upgrades will make a difference can be costly and may not make the difference necessary.

Good luck,

Bill
0 votes Thank Flag Link Sun Aug 21, 2011
If your home's value is approx 700,000 why are you at 720,000? Sounds like you might be over priced, talk to your agent.
0 votes Thank Flag Link Sun Aug 21, 2011
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