Home Selling in Pasadena>Question Details

R J, Home Seller in Pasadena, TX

Need advice on market price and timing in Pasadena CA.

Asked by R J, Pasadena, TX Tue Jan 6, 2009

House went on the market in Oct. Asked 878K. It appraised in Sept at 840K before the remodel. Dropped it to 848K in Dec. (now 345. per sq ft.). Have had lots of views and positive feedback, but no serious offers. Now our realtor is asking us to drop it below 800K- but the house has only been on the market 70 days. The house next door (2935 Hermanos) sold in Dec at 399. per square foot (180 days on market) but if we were to take the realtor's new advice, we would be asking only 325. per sq foot for a house in much better shape. The average market period for a home in Pasadena is 140 days @ $400 per sq ft. I think we should sit tight awhile.Dropping it another 49K seems foolish this soon.The market is only losing 2% per month value. Am I making a mistake? The realtor seems anxious to sell.

This question is about this property: http://www.trulia.com/property/1068945248-651-N-Sunnyslope-A…

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R J

If you can afford to wait, and aren't up against short sales and foreclosures all over the place, you can be one of those to draw a line in the sand. At least for a while. Those that do numbers have to start increasing in some areas at some point. Besides your timing on listing was not that great. You are heading into a much better time for selling. You may want to get a little more proactive with the marketing. The link below is to a blog directed mainly at FSBOs. However, there is information in it that you could possibly use to supplement your agent's efforts. Always keep your agent advised of anything you do on your own, and use the agent for the contact person.

I would like to add that in my situation my agent dumped me. Probably for several reasons, one of them being price. It was in Sept. of 07. I wasn't even going to re-list until the end of Jan. 08. In the meantime I did a half-hearted FSBO, and got the call in early Jan. I sold for 20K more than where my agent was trying to lead me. To his defense, the house really didn't have true comps in the immediate area. However, he wasn't willing to go outside the subdivision. I may have just gotten lucky, but agents are not infallible. They can actually be wrong sometimes.

http://www.trulia.com/blog/rockinblu/2008/08/thinking_about_…
1 vote Thank Flag Link Wed Jan 7, 2009
Always ask your agent to provide you with updated comps for the area. In reviewing the comps, you should get a better idea of the price of your home relative to comparable neighborhood properties.
0 votes Thank Flag Link Mon Aug 13, 2012
R J,

I would like to add to my earlier post. I just looked at the photos. it absolutely blows me away at the prices out there. However, it seems to me that maybe the agent is trying to go low and hope for multiple offers to bid up the price. Only the Realtors out there would know if this is a good strategy. In the current environment, I am more than a little skeptical, but then I'm not an agent that has first hand dealings with this. I'm sticking with my earlier post. At least give it another 30 days until you are in the real buying season.
0 votes Thank Flag Link Wed Jan 7, 2009
RJ
First, this is not a solicitation (disclaimer).
Second, I just answered another post just like yours, so know that your question is not uncommon.
In any given market about 20% of homes sell within the first 30 days. That is my goal when I list a property. The reason is that homes that sell within the first 30 days sell closest to asking price. In this area (your area), homes that sell in 30 days are selling for about 98.7% of asking price. At 120 days the are selling for 90.6% of asking. Market time is hurting you.

The listing agent's job is to project the features of the home that buyers are looking for in your area. That includes cleaning, decluttering, staging, professional photos, perhaps scale floor layouts, etc. You may have a great property, but if the buyers have to work to figure out why it's so great, it will not achieve full value at sale.

When a property is properly prepared, properly marketed, and properly priced, I expect 10-12 showings or one offer in the first two weeks of market time. If we do not see those resutls, we adjust the price and marketing.

80% of listings are not properly prepared, marketed, or priced. I would ask your REaltor for comments from showings. How many properties, like yours, since your property hit the market, have:
Come on the market
Lowered their price
Gone into escrow
Sold
Expired.

You should be getting market updates on a regular basis. Home sales (units) are UP. We are selling more homes this year than last year, so the market is not slow. It is red hot...when a property is well-marketed.

Good luck.
0 votes Thank Flag Link Wed Jan 7, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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RJ

Your realtor appears aggressive because of their awareness of the mistake many sellers have regretfull made in the current market of declining value. Sellers that have take a conservative view of pricing their homes have found themselves in a position of "chasing the market bottom" and never quite finding it. Conservative pricing always has them coming up short.

This is evidenced by your own disclaimer "getting lots of views" but "no offers." This is silent communication that experienced real estate professionals hear and identify as a "pricing issue."

Sellers that chase the market down, never quite catching it, end up losing larger sums of money than those that price aggressively and find the present true market bottom.

Your agent is hearing what the market is saying......now it's a matter of you hearing it as well. Remember as you wait it out, the bottom continues to drop.........

Good luck
0 votes Thank Flag Link Wed Jan 7, 2009
After looking at pictures of your home, I agree, you should consult a staging proffesional. Your home looks very nice, it is remodeled, looks spacious, white, and empty but lacks anything to make the buyer connect to it. Staging a house isnt about making it feel sterile so that it appeals to the most possible people. It is about creating an atmosphere where many people will feel comfortable and and some will want to call it home.
Seek a stager and listen objectively to their advice.
Good luck! You have a great home, youve made it through the worst season in the worst year. It will get better!
0 votes Thank Flag Link Tue Jan 6, 2009
Pasadena ended the year with $420 per sq. ft. based on 657 closed sales. On average, it took 96 days to market these homes. December stats for Pasadena show that 69 homes sold at an average of $373 per sq. ft. with the market time of 102 days.

I would take a look at your personal situation and how quickly you need to sell your home. December was a hard month for real estate sales given the holidays. Give it a couple of weeks and see what kind of activity you are getting.

If you are getting a lot of viewings, but not offers, the first place I'd look is at how the home shows to the buyer. If the price was high, you wouldn't be getting many viewings and your home would be ignored.

My recommendation would be to get a staging consultation before reducing the price of the home. Implement the suggestions of the stager and see how quickly your home sells.

Oh... and make sure that your Realtor takes new photos. :-)

Good luck!
0 votes Thank Flag Link Tue Jan 6, 2009
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