Market Conditions in 33156>Question Details

Kathy Ambros, Home Seller in 33156

How long should a house be on market before you should lower price?

Asked by Kathy Ambros, 33156 Thu Sep 6, 2007

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Kathy,

No one has taken into consideration your location. MIAMI not selling! I feel your pain I have several friends who are realtors in Miami and there is nothing good to say right now about your market. I am so sorry! All of south Florida is just at a stand still. I have a client (in central Florida) who's daughter is a realtor in Miami. I talk to her frequently and she tells me that she dreads calling her clients every week to touch base with them beccause things are just so slow. There is a point when you have to consider how much you need to sell. Is this a time when you can sit and wait. Are you in a position to take your home off the market and wait a few months to see what happens. If Gov. Chris t gets the tax break for property owners that he is looking for it would help your area increadibly. Also is the interest goes down at the next meeting in 2 weeks that may help. There is an influx of homes on the market in Miami. On top of that this is not buying season for Florida in general. You know that buying season starts (generally) he end of September but is not the strongest until after the first of the year and trickles off after April.

Consider taking it off the market for the next couple of months. IF that is not an option talk to your realtor about your marketing. Price is not always the issue as it is in Miami.

Best of Luck,
Linda J Sears

PS: Bank of America in south Florida is offering 100% financing with no PMI. Have you realtor check with your local branch to see if it is offered. If it is advertise it!
1 vote Thank Flag Link Sat Sep 8, 2007
Kathy,
At the time a house comes on the market for sale there is a certain pool of buyers already in the market that is ready, able and willing to buy once they find the right house. The marketing for your house should hit this group of buyers within the first 30 days. Once you have exhausted that pool of prospective buyers your buyer pool becomes smaller and smaller. It takes the average buyer about 6-9 months to reach that stage where they are ready to buy once they walk in the right house.
Often sellers want to test the market and price their house higher then what the market tells them just to make sure they don't miss that one buyer that would pay more. Kathy, the value of a house is what a buyer is willing to pay, not what a seller wishes he can get.
Pricing your home from the 1st day properly is your key to success.
Once the marketing is in full swing, and with today's media that is happening within a week, the buyer pool will tell you if you are priced right. If you have daily response to the marketing and your home is shown multiple time per week than you should receive an offer after the first 10 showings. If you don't then you need to evaluate your product and the price. Don't procrastinate, every day your home sits on the market without interest of prospective buyers you are loosing money.
Good luck to you.
5 votes Thank Flag Link Thu Jul 21, 2011
You must have adequate market exposure in addition to right pricing. Assuming your Realtor has provided a strong marketing campaign, lack of interest indicates overpricing. No amount of advertising will sell an overpriced listing. Frankly, to the contrary, excessive advertising of an overpriced listing helps sell the competition. It calls attention to how much less the buyer gets at the overpriced listing, thereby encouraging the buyer to take action via an offer on the competitive property.

Assuming you have good market exposure…….

Having no showings tells you that your property needs a very strong price reduction. If you have showings, but no offers, you still need a price reduction.

If you drop the price incrementally, you will be chasing the market. Instead, you want the market to want your property over the competition. You will be better off by making a reasonable price adjustment now. A common mistake that sellers make is to inch their way down in price. This results in stigmatizing the property as unwanted and ultimately leads to a lower sales price. You will sell faster and for a better price if you right price sooner versus later.

If you have no activity in the first few weeks, the market has spoken loudly that the price is too high. Within 10, to max 14 days, evaluate pricing and make adjustments. Your best market time is the first few weeks, make the best of that time
3 votes Thank Flag Link Thu Sep 6, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
Hi Kathy,
If you don't have many showings in the first week, something is wrong. When a home first hits the market, that is when interest is highest. I tell clients who wish to price their house above what I consider to be a good price that we will start it there, but review it after the first week. Few or no showings means you've missed the mark. Even if you do have showings, if no interest is generated (meaning no offers) you're probably overpriced. Dropping a price will generate additional interest, and many MLS systems show price reductions to agents and also will re-send the listing to those who have been set up to have listings emailed to them. A price reduction should show good faith on your part, though, too. Dropping it $100 will get more scoffs than interest.

If you're listed with an agent, ask them to run the comparables for you every two weeks or so. If your selling on your own, this info is a bit harder to obtain. You want to keep up with the competition so that your home stands out in the crowd.

Best of luck to you!
2 votes Thank Flag Link Thu Sep 6, 2007
Hi Kathy:

In our market, we say that if everything is in tip-top condition and your Realtor is doing all the marketing they could do and there is no interest, then you should look at lowering the price in two weeks. If you want to lower the price, you should make the reduction substantial enough to make a difference to the buyers instead of just a teaser reduction.

However, everything depends on your motivation. If you are really anxious, one week is good enough to wait. because you really want to stay in front of the curve instead of catching up from behind, which is much more difficult.
2 votes Thank Flag Link Thu Sep 6, 2007
Sylvia Barry,…, Real Estate Pro in Marin County, CA
MVP'08
Contact
If you have a full service Realtor, I would listen to his or her advice. Considering all the Marketing is up and running. You are still not receiving offers. Run comps for the neighborhood. Go out and look at your competion. Put yourself in the buyers shoes. I would drop the price 5 to 10K below the lowest price in your neighborhood. We live in a Wal Mart World. Your Realtor must create "The Fear of Loss" that some other buyer will come along and buy the house.
Good Luck
1 vote Thank Flag Link Thu Sep 6, 2007
Mr.P, Other/Just Looking in Arizona
MVP'08
If you have had 15 showings and no offers that is an idication it is priced to high. If you are getting exposure, with or without a realtor, and you are not having showings, it is an indication it is priced to high. How long has your home been on the market? Have you had many showings? Have you had any second showings? Are you selling by yourself? Please tell us more! Inquiring minds want to know.
Web Reference: http://carriecrowell.com
1 vote Thank Flag Link Thu Sep 6, 2007
Try to go no longer than 4 weeks before you go for a price reduction. The single most important thing is momentum. Meaning traffic (buyers and other agents) considering and looking at your property when it first hits the market.
You want to try to avoid your property of becoming "stale", not selling.
Best of luck.
1 vote Thank Flag Link Thu Sep 6, 2007
I agree with Kathy. If you are not getting any movement ,I would say to reduce the price after about 2 weeks. And it should be a significant reduction, perhaps 10% below the the lowest price in the area. Although the market is not what it was , we are seeing that properties priced right for this market are selling.
Web Reference: http://www.ewm.com
1 vote Thank Flag Link Thu Sep 6, 2007
The NAR (National Association of Realtors) says that if a house sits on the market for more than three weeks, the house is probably overpriced by 2-4 %. These are national statistics. I agree with what Bill says below, that the house has got to be priced appropriately from the get-go. In addition, you must maintain your price to remain in-line with the comparables homes in your immediate area. The next step is to keep your eye on the homes that go under contract, aka "Pendings". A good agent will find out what the current Pendings are ultimately selling for, thru their network of agents and resources. As we know, the most recent solds are our best, most concrete indicators of where the market is heading. It is all about keeping up with the competition and in today's market it is about staying in front of the competition.
0 votes Thank Flag Link Tue Feb 10, 2009
Kathy,

Unfortunately, there is no formula for determining when a home's price should be decreased. The most important feature is that your home is priced appropriately....for the current market conditions. It is important to note that this can change over a fairly short period of time and thus should be monitored closely. A good agent will provide this level of service and keep you posted on new listings and sales in your target location. An important fact is that your home's price should not only be tied to the neighborhood it is in but also to homes in other neighborhoods with similar homes being marketed in your price range. It is absolutely essential that you are aware of the total market in which your home is in competition.

If you are priced competitively within your market there are certainly things that can be done to enhance your home's appearance. Here's a check list:

1. Evaluate the photos representing your property on the MLS. Do they attract people?

2. Verify all information on the MLS to be accurate. We find many mistakes.........

3. IMPORTANT-Do the remarks represent your property? This is a place to enhance your home.

4. Are all community amenities covered?

5. Are directions to your home posted clearly and accurately?

Additionally, if your home is priced right for this market and you still wish to enhance its presence there are steps that can be taken to accomplish this.

1. Offer to pay an amount toward the buyers closing costs

2. Throw in a golf course, fitness center, boat club etc. membership with the purchase

3. Pay for the first year of HOA fees

4. Offer an extended home warranty 2, 3, 4, .....years

5. Be creative, build a case for people to need to see your home

And the best thing is.....all of these attractive features are negotiable and can be negotiated out of the deal during negotiations.....not costing you a dime!

We truly hope you find this information helpful.

Good luck,
The "Eckler Team"
Century 21 Almar and Associates
Venice, Fl 34285
ecklerteam@comcast.net
941-408-5363
0 votes Thank Flag Link Sun Jun 1, 2008
Smart move, Kathy. You did not mention it but I assume you're trying to sell by owner. Cooperating with brokers is a smart move but consider this.

Realtors who are attracted by your 4% commission offer may bring a buyer, but they will be representing the buyer's interest, not yours. Therefore, you may be paying a commission to a Realtor for them to negotiate against you while looking after the buyer's interest.

Also, consider that a professional and powerful Realtor member of a board like RAMB, will expose your home to buyers in foreign markets in a way you may not be able to, and will expose your home to the entire local real estate community, in addition to other marketing.

If you would like some help in determining the right price for your home, give you an objective opinion of price as it relates to the condition of the home, or any other factor which may be affecting your ability to promote it, visit http://miamirealestateking.com/9404/dsp_agent_page.php/45860… and I will gladly offer you a complementary consultation with the evaluation.

Wenceslao Fernandez Jr, BS, CDPE
Keller Williams Realty
0 votes Thank Flag Link Sat May 31, 2008
Atleast you make me feel better. We have decided we are going to lower the price to $10,000 below others that are 4/2 and smaller, we are 5/2 and larger lot. We are also going to pay $2-3,000 towards closing costs and raise the agent commision to 4% from 3%. We cant do anymore after that, but sit and wait. Hopefully that will atleast make us the best deal in the area if and when someone comes buying
0 votes Thank Flag Link Mon Oct 1, 2007
Linda is 100% correct here.

I am reading what others are saying with regards to price evaluations in as little as 2 weeks!?! In Miami!!! No way. It’s the market that is hurting you most. I see zip codes that have sold only 4 - 3/2 units this entire year! That’s 4 homes in 9 months for an entire zip code! And this is w/ all the agents marketing and adjusting prices. And that was with no hurricanes and included the South Florida “busy season”.

I see very nice, well marketed homes taking $25-35k price reductions screaming “bring all offers” in their ads, simply sit month after month.

The property tax reduction vote that was to take place Jan 29, and would have helped out A LOT is (as of today) not going to be allowed due to a democrat politician that sued and had it removed from the ballet to protect is revenue stream, despite taxes killing this real estate market.

Best thing to do, if you are truly priced correctly, is to pray for tax reform (calling the Governor’s office to push to get the tax bill returned would also help).

In the mean time just be prepared to weather the storm like the rest of South Florida.
0 votes Thank Flag Link Mon Oct 1, 2007
Sorry my key board this morning has gremilins and I have all thumbs.

Point Blank, your home should show 2 x per week and if no contract in 30 days review. Some areas in Atlanta I am looking at 2 week reviews, this is not the market to sit and wait.
Web Reference: http://www.TeamRenton.com
0 votes Thank Flag Link Fri Sep 7, 2007
Kathy,
I have a 30 day review with the client if we have no contract. I am now noittaking listings if they are not priced in the top1/3 or the condition is not in the top 1/3.
Web Reference: http://www.TeamRenton.com
0 votes Thank Flag Link Fri Sep 7, 2007
I set it up with my sellers in the beginning that if we have no or limited activity in the first two weeks we need to re-evaluate our price.
0 votes Thank Flag Link Thu Sep 6, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
I try to make a pre-agreement with my sellers that we reduce 2 weeks if there are no repeat showings. If there are repeat showings, let's give it another week or two to see if they blossom into offers. If not, the market is telling you that it is time to reduce to a more competitive price.
0 votes Thank Flag Link Thu Sep 6, 2007
The biggest market motivator at this time is price, we are seeing it with all of our listings. Rick and I use what we call triggers to warrant a price reduction in a home. If you have no showings in 7 days and no offers in 15 weeks - it means a price reduction is recommended.

Depending on the location of the property your Realtor should be able to give you an idea of the competition and how other similar listings are doing around the area. Make sure that you are marketing aggressively (especially on-line, since over 87% of buyers begin on The Internet), and then make your decision.
Good Luck!
0 votes Thank Flag Link Thu Sep 6, 2007
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