Wow, I am so sorry to hear of your disappointment! You must be livid!
As a seasoned broker, I would like to communicate at that level. For those readers that are not"in the busines", please just read, don't judge or over react.
I am so sorry to hear that your first "full service brokers" did not properly market your property.
The good news - it can be re-marketed.
The bad news - it's going to cost you.
A couple of ideas
1. You know that selling price is different than List Price... you might need to be a little revolutionary...maybe 15% below market...the point is to get SHOWINGs and get OFFERS. The market will pick the price. I am sure you would agree that if the marketing is "adequate" no home will sell for less than the market wil let it.
2. I do not know the particulars of your market. I am assuming that you have monthly carrying costs. It may be that the market has shifted....as we say, "shift happens". Run the numbers. Take your carrying costs, add your expected profit, plus the costs of rennovatting...and through them OUT THE WINDOW!
TIME is you enemy. The market already knows that the home DID NOT SELL FOR.
This is my strategy
1. Change brokerages
2. Change the price
3. Re-shoot the pictures - you need a virtual tour
4. Repaint the front door
5. Add more flowers and landscaping..so the curb appeal looks different...not better ...but different.
6. Increase the commission to the selling office...if you need to, add it to the price,
7. Make sure the new agent sends an invitation to theopen house to at least 400 neighbors...email me and I will send you my template.
8. If you don't have ten showings, or two offers in two weeks, lower the price 5%.
I am not kidding, this should work.
Ruth, as you know, price is the first factor, marketing is number two. I am so sorry to hear that your first MLS listing R
As you described the situation, I would be annoyed and disappointed also. Brochures should be done timely and include information that is relevant to the substantial renovation and help the agents understand why there is such a price change.
Agents may know there was a foundation problem and be a bit shy with clients as a result. If that was a well known problem, I would address it to the agent community, but not in public marketing brochures. MAKE NOT MISTAKE, I am not suggesting that you withhold info from a prospective buyer. Disclose. Disclose. Disclose. Include all relevant data in disclosure materials and make sure all buyers are supplied with all facts before entering a contract. I just am not recommending including a prior foundation problem in a marketing brochure. :)
What I am suggesting is something along this note. Have a broker open, invite the brokers and have an engineering report, or something similar that helps build their confidence. If the foundation was a previously talked about problem among brokers, bring it up to them and let them know what has been done.
I pulled your Realtor.com listing. If you had a full service agent, I would not critique. Since you are directing this, and you are asking for help, I will share my feedback. Focus the banner message (the yellow frame) on Renovated, Perfection, etc. The kitchen shot is difficult to interpret and has a fish eye roundness. Seems like you put a decent amount of $$ in the kitchen and are not showing the kitchen for all itâ€™s worth. I might try to pick up some of the architectural details closer up in your photos, also.
I am not a fan of buyer agent bonuses. I firmly believe you need to offer competitive compensation. Once the compensation is fair, my mind, as a buyerâ€™s agent is focused on meeting the buyers needs. A bonus has no affect on me. I know that is not true for all agents. I am committed to finding my buyer what they need, and am not going to shift my focus based on a bonus. Thatâ€™s me. As a result, I donâ€™t support buyer agency bonuses. You will find several agents who will give a thumbs up on the buyer agent bonus.
I am sorry to hear that your full service agent disappointed you. Every situation that I approach, I try to bring more value than expense to the table. Every day, though, I rely on the updates and market knowledge I gain from the inside track and my contact with colleagues.
On the tract that you are now.........I hope some comments above can be helpful for you!
Keep me posted. I feel like we are starting to be friends!
In many areas of the country, agents use square footage. Here in central NJ, you find sq ft on some listings, but many do not have it. So, I understand the "not using sq ft", but might expect a few other RE Pros to find that surprising. We do measure rooms, and include the room sizes on MLS.
What you are really saying in your post is that you are not satisfied with the comps that the agents have chosen. I suggest you meet with your agent. Are you currently listed? I know you were, but am not sure of the current status.
You can ask the agent to bring a list of all comparable solds, expires, under contract (pending), expireds, and active listings for the last few months. Try not to dwell on any particular comp. Instead, look for a pattern to emerge. Are you considering properties to be comparable that the agent is not? Identify where the difference are between your read on the comps and theirs by fdinding the emerging pattern. Are you looking at properties that are all on quiet streets, while you are on a busier street? Size, condiditon, function, updates or lack of are just a few of the factors that will cause adjustments ot pricing when comparing comps, or cause an agent to eliminate a property from being a valid comp.
Deborah Madey - Broker
Thank you for your update.
I realize that it is difficult sometimes to face a challenge...after facing one or two!
I pray that you have success. If you have more questions...please post!
Keith said, "Take your carrying costs, add your expected profit, plus the costs of rennovatting...and through them OUT THE WINDOW! "
Yes, I know!
The problem is how to un-ring a bell?
Thanks for the compliment! I went to your site for your home and spent a few minutes clicking on the links, etc. It is a lovely home.
Keith provided you a thorough and accurate response.
Since you have a real estate background, you know if you are reaching the agent community with your current marketing. When a property does not sell, it comes down to either price or exposure. If the exposure is strong and the market does not produce a buyer, than it is a price issue. Take one more look at your marketing to evaluate whether you have given broad and deep exposure to the agent community and public. If so, then, as much as you might not want it to be the case.........price. We can adjust price when a property doesnâ€™t show well, or fix the property to bring the value up. In your case, your home is lovely. There does not appear to be anything to fix. Any factors about the property that are beyond your control to change (busy street, school district), must be adjusted in price.
Did the agents give you comps to support 600K since that was the pricing advice?
It does sound like you have done a lot of homework on this. You canâ€™t advertise your way out of a bad market, or an overpriced property. If the price is too high and you throw marketing dollars at it, you will only be throwing money and more time away. (A reality I have to face as a broker when we have an overpriced property.)
Keith hit the nail on the head again when he made the suggestion about underpricing 10%. It does generate results. I donâ€™t know what your market price is since I am not in the Chicago area. You have a wide spread between 799 and somewhere in the 6's as you mentioned in your post.
I wasnâ€™t sure how you arrived at your numbers for the count of serious buyers per price range.
Thank you for sharing your background.
It sounds to me as if you true question is "hy isn't my home selling?" and ""How do I price it right?"
Is this correct?
You also wrote "Feedback from the Realtor Open House caused us to finally list it with our full service agents for $899,900 when the house was completed. "
Then later you wroteI "ow have it listed with a flat rate MLS office and am marketing it myself"
Is this correct?
How many days collectively has the home been on the market in the MLS?
You know at what price it did not sell, right?
Did you have showings? If no, it is priced too high
Did you have any offers? If no, it is priced too high.
Ruth, as a broker you are aware that the majority of the time an agent brings the buyer.
You need brokers to view and show your home to sell it. Price, schmeise, if the home is being "properly marketed", as you say it is, then it is price, plain and simple.
I would be happy to share a nifty article that was in the Wall Street Journal http://(www.wsj.com) last Sunday on making homes more saleable. Email me if you would like it.
To sum up, if you are not receiving showings, assuming it's in the MLS, multiple photos, virtual tour, etc., then it's the price. Prior to lowering the price, I would try an increased commission to the selling office. It's cheaper than a price reduction.
There was an earlier post I made today about selling home in a tough market:
Price it 10% BELOW market. Our operating Principal just did that, got multiple offers, it sold at market price with great terms (no contingencies) in two weeks.
Most of the houses in the area are 80 to 120 years old and vary from tiny bungalows to Frank Lloyd Wright mansions. The Victorians that have the same sq ft as our side-entrance Colonial need about $100-$300k worth of repairs and they are selling for over $1mil and don't even have air conditioning. Homes that haven't sold have no historical value and need work.
The agents just refused to look beyond their tunnel vision. I kept asking them to show me true comps or tell me why the comps I was finding were wrong. Granted, we are on a slightly busier street then two streets away and we are only a block away from a commercial street. But when I ran stats on sold homes on our street or other streets equal distance to the commercial street and compared them to homes on better streets, the average cost per square feet was about $25 lower. We have our home priced almost $75 per sq ft lower to compensate for location and market conditions. Then they said some of my comps were from a different grade school. I didn't believe that would make a difference, so I asked around and learned they were right. So I took out those comps and it didn't change the price any, it just gave me fewer comps.
They never actually said our house wasn't worth a million dollars but would say we need to price the house in the $600s because that is the price point with buyers in it.
I now have it listed with a flat rate MLS office and am marketing it myself. I was a Realtor and a Broker in NC back in '95 and am treating the house as if my business partner is the owner and I am the agent - which is true, I'm just not an IL licensed real estate agent and I have an owner's interest as well. I never lie about the situation and some people pick up on the difference or ask. It just eliminates some of that "I don't want to insult the owner" aspect.
I can guarantee you I know more about the local market now than most of the local agents. The DOM stat means nothing to me, I want to know the days on the market from listing to contract, not listing to sold. The average is only 19 days not counting one house that took 184 days. This is why I am worried - The bad agents stoled my window of opportunity. All of my statistics are from the past 6 months. There are approximately 41 serious buyers for $750k homes, 33 buyers for $800k, 28 buyers for $850k, 22 for $1mil, and 15 for $1.2 mil homes in Oak Park, IL.
What I don't know and why I am asking here on-line, is if I am completely off base and out of my mind? A lot of questions asked here are philosophical crystal ball reading sort of stuff and differing opinions. Also, there are so many factors that go into selling a home, it is almost impossible to figure out which one or if all of them are preventing the sale.