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Joan Kendrick, Home Seller in Florida

Our home has been on the market for 14 months.Everyone that has looked at the home loves it but no

Asked by Joan Kendrick, Florida Sun Jul 29, 2007

offers. It is prices to sell We have reduced the price several times.Are people just looking ?I am confused.

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If you reduced your price a few times, it indicates that you may have started out too high. Unfortunately, someitmes this is difficult to recover from. Time on market and price adjustments can adversely affect your position, if your time on market is longer than the competition (other listings.) The end result of overpricing is often selling at a lower price than you would have, had you gone to market more favorably aligned with the market in the beginning. You might just be in a very slow market. In order to find out.....

Ask your agent to do an updated CMA for you. Look at properties that did get contracts while you were also on the market. What was it about those properties that generated an offer and contract. Compare your property against the current acitve listings. How do you compare?

Ask your agent to provide you the data for absorption rates and average DOM. Are other properties selling while you are not? Or, is just no one selling?

Good luck.
2 votes Thank Flag Link Sun Jul 29, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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Hey Joan - I don't know what area of the nation you are in so I can't comment on the possible reasoning for your predicament.

You definitely need to do a completely revamped CMA - and have you considered pricing on a scale: i.e.:
Buyer will entertain offers between: 250,000 and 259,000

I know that it has helped in the larger markets like Southern California.
1 vote Thank Flag Link Sun Jul 29, 2007
Joan,

Are you present when your home is being shown and speaking with the potential buyers yourself? I had a seller that insisted on being present at and participate in all showings. Her home was a nice home and moderately priced. She was very proud of all of the decorating and landscaping she had done herself. She made sure every potential buyer knew about every detail of everything she had done to improve the property. Everyone loved her home, her decor, her price. She would get so excited with each showing never realizing that these people were being polite and were made very uncomfortable. She was terribly let down when they never produced an offer. Every showing was an emotional rollercoaster for this woman, but she still wanted to be there. She still believed that everyone who told her they loved her home would produce an offer. She is now on her sixth realtor (the last time I checked) and her home has been on the market for two years.

Most realtors ask that you not be present during showings. This allows the buyer to freely evaluate the home and to give real, honest, feedback. Many potential buyers are uncomfortable with the seller present and will look as quickly as possible, moving on to the next home. What they will remember most about your home is you.

If this is not the problem, do a new market analysis (should be done weekly). How many homes are on the market that are similar to yours? How many similar listings are selling before their expiration date (only 35% of all homes listed in my market are selling before their 1st expiration)? What is the average days on the market for homes in your specific area and price point? It could be that your market has slowed and your time on the market is not unusual for your area right now. You may not like the information you get, but accurate relevent statistics will help you plan accordingly.

If you are working with an agent, sit down and talk with them. What are they doing to market the property? Do they give you a weekly report of what has been done and feedback on showings? Can the two of you sit down and re-work your marketing plan to find one that might be more effective? Is there anything that your agent can see that is a deterent? Ask them to be honest, and don't get offended if they tell you something you don't like.

Allison
1 vote Thank Flag Link Sun Jul 29, 2007
Careful Ruth, you are going to end up with your IL Real Estate License. Your passion for real estate is going to hook you! :)
0 votes Thank Flag Link Sun Jul 29, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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Joan
I just love questions from Florida!
You have a buyer's market , right?
If your home was price to sell, it would be sold.
The real estate market is like the stock market...it runs on emotion, not logic.
You've got some great advice....here is the hard truth
The market picks the price, not you, not your Realtor.
Do you have to sell?
If so, time is money.
Price it 10% below market.
Promote, market, new photos, paint the front of the house, add flowers, declutter, etc.\
Our broker just did that, got multiple offers, it sold at market price, no contingencies, done.

Good luck
Keith
0 votes Thank Flag Link Sun Jul 29, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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Cindi-

I did not mean to imply that my listings sell at the average days on the market, they don't or I wouldn't be able to afford being in this business. I only meant that local market statistics help to prepare a seller for what to expect. Last year it was not unusual to sell homes in a matter of days, not so now. Knowing the local market and the market for the appropriate price point helps dramatically in deciding how to market, how to price the home, and what terms to offer. I was merely suggesting to Joan to consider where her market is now. I also use my personal statistics for days on the market, percentage of listings that have sold, and list to sales price ratio when letting sellers know what to expect.

As far as telling a client that I will sell their home in x amount of days, I just can't do that. If I tell someone that I will sell their home in 45 (to use your number) days and I don't get an acceptable offer until the 46th, then I've broken my promise. I don't promise anything that I don't know 100% that I can deliver. I prefer to give an educated estimate based on my past performance and the current market. If you can promise a sale in 45 days or less every time, fantastic, I'd love to know how you do it. (I'm not being facetious, I mean really, call me). What I do promise is the highest level of service available, and the education, knowledge, and performance record to help assure my sellers that they will get the best price and terms in the shortest amount of time possible.

I absolutely agree with you that many agents will take a listing that is overpriced, or even suggest a higher price to "buy" the listing. This has become such a common practice in my market that it is getting more and more difficult to educate sellers about the correct price. With the higher end lake and mountain properties, It's almost counter productive to look too hard at the competition when pricing a home. I try to convince my sellers to look at the home as an appraiser would, sometimes I even bring an appraiser with me to list the property. This has gotten so out of hand that the number one reason that contracts fall apart in our area is that the property didn't appraise. I don't know when agents will realize that we don't set the market, consumers do.

As far as being an "normal" realtor, I've never met one. We're an odd bunch for sure. (Now I'm being facetious)

Allison
0 votes Thank Flag Link Sun Jul 29, 2007
Joan,
How many times has the house been shown? Typically, for every 10-15 times the house has been shown, you should have at least one interested buyer. If they are saying they like the house I would seriously consider your price. You may have lowered the price to keep it priced to sell, unfortunately by the time most people lower, the market price has lowered to and they never seem to catch up with it. If you really need to sell, you might want to take a bigger cut! I would advise you to talk with a REALTOR and get a good picture of where the market is in your area. I hope this helps.
Web Reference: http://carriecrowell.com
0 votes Thank Flag Link Sun Jul 29, 2007
Cindi
I think we are on the same page about lowering the price to where it will sell. We are saying the samething but expressing it in a different way I handle my clients the same way in Naples and I to don't let the market dictate any stats but If you don't have the comps you can't set a price. We are more alike then different. Good Luck with your business and your success
Web Reference: http://CaronHomeTeam.com
0 votes Thank Flag Link Sun Jul 29, 2007
Allison-

I respectfully disagree. A properly priced, properly marketed home will sell in ANY market in ANY condition in 45 days. I have a suburb in the Bay Area where average time on the market is 18 months....I sold a home there in 15 days. Why? It was properly priced - and propely marketed. There are a lot of sellers that are not willing to accept that the market has changed dramatically. And there are a lot of agents that will take a listing knowing that the home is overpriced.

Ultimately, it's the market that sets the price of the home. If it doesn't sell in the first 45 days....it's either price, product, or pitch. (Marketing.)

45 days is not the norm in the Bay Area either. A good Realtor can propely advise their sellers, market their listings properly, and achieve results far above the "norm." I am not a normal Realtor. I choose not to be....I don't let the "market" dictate my stats. Good luck.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sun Jul 29, 2007
Cindi Hagley, Real Estate Pro in San Ramon, CA
MVP'08
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If you are getting a lot of showings, but no offers, lower your price--again and again until you get sold. There are buyers out there.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Sun Jul 29, 2007
Joan
Put yourself in the buyers shoes. You look at a house it has everything you want but it is more then your willing to pay. With the amount of inventory that is out there you have to be very aggressive with pricing your home. A fews years back when the market was changing upward every month and in some locations weekly realtors and appraisers could not keep up. Now the opposite is happening the market is changing monthly but downward so if your property is on the high end of comparable homes it will be overlooked for the same home on the lower end. The fact that your house is on the market for 14 months would indicate your on the higher side, there are buyers out there you just have to put yourself in the ball game. Remember, if you price your home for 400,000 and the market is 380,000 by the time you make the decision to lower to the market it may now be 20,000 less then that . Don't chase the market down. The quicker you sell the more you gain, the longer you wait the more you lose. I hope this will help you, the level of anxiety with having your home on the market that long is definately not fun. If I can help you in any way please feel free to contact me Good Luck
Web Reference: http://CaronHomeTeam.com
0 votes Thank Flag Link Sun Jul 29, 2007
Cindi,

That may be true for your market, but the average days on the market for the average priced home in my market has dropped to 164 days and only 35% of all homes in my local market are selling during their initial listing period. The dom and %of slp are higher for higher priced homes. The market in coastal SC has slowed even more than upstate. 45 days on the market is not the norm right now in this market, but it's great that it is in yours!

Every local market is different and clients need to be made aware of what the market conditions are currently and locally in order to know what to expect and how to plan accordingly. A good agent knows what statistics are relevant to each particular listing.
0 votes Thank Flag Link Sun Jul 29, 2007
A properly priced, properly marketed home should sell within 45 days. It comes down to price, product, or pitch. (Marketing.) Your Realtor should be able to advise you. Are you using a Realtor? Or simply a licensed agent? Or are you trying to sell the home yourslef?
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sun Jul 29, 2007
Cindi Hagley, Real Estate Pro in San Ramon, CA
MVP'08
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Sounds like there is some kind of issue and it can be solved by price. You must be in the right price range, but maybe your home needs updates, or there is something about the style or location that is turning people off. Normally if there are no showings, then price is an issue. If you're getting lots of showings, but no offers, it's priced too high. Anything unusual about the home?
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sun Jul 29, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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