Foreclosure in Chicago>Question Details

Marcus, Home Seller in Chicago, IL

Should I Lower My Price Or Stick It Out?

Asked by Marcus, Chicago, IL Thu Aug 30, 2007

I had been contemplating relocating from Chicago to California for the past few months. Once I definitively decide to move, I put my condo on the market. Unfortunately, several months later it still has not sold and no offers have come in. I guess my decision now is how badly do I want to go? I can significantly lower the price to entice a buyer or rent it out. The only probably is that I was counting on the proceeds to keep me afloat while I searched for a job. Any advice?

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I think Sylvia made the most important point. If you don't have a job or enough money, you may not even be able to RENT!!!

I hear Costa Rica is a much more affordable place to be a surfer b_m.

I couldn't send this. Trulia thinks a homeless surfer is profanity. I mean no disrespect. My husband and I ditched everything and moved to the beach years ago. We just got back from vacation at a surf camp in Costa Rica and the majority of Americans there quit their jobs and were using their saving to survive for 6 months to a year.

As Sylvia also said, it depends on how motivated you are.
Ruth
1 vote Thank Flag Link Fri Aug 31, 2007
Ruthless, Other/Just Looking in 60558
MVP'08
Where are you planning to move to once you come to California and will you be planning to buy a house or will you be renting?

If you are planning to buy and you don't have toe downpayment or a job, you won't be able to qualify for a loan, or maybe you won't even be able to rent.

I agree with Ruth and Pam that perhaps you should wait until you find a job before you move to California, but without knowing the kind of job you are planning to get (and you don't have to tell us here unless you want some lead on that also :-)); it might not be feasible to do that long distace.

I guess we really don't know how easy or difficut it is for you to get a job from afar. But that is an advise to consider.

Also, as in your own question, how BAD do you want to go with or without a job? Is it for the location, for a new job or for a totally new beginning? That is what YOU will have to answer.

A lot of times we said that how the house is priced really depends on the seller's motivation. So,
until you deicde your own motivation, I dont' know if we can advise whether you should lower the price or stick it out.

Aside from life choice, one other thing to consider is the market trend. If you have not received an offer after so long, is Chicago housing market going upwards or going downwards? If it's going up, then waiting makes senses, if not, how long will it go back up? Will you eventually have to cut the price more than what you would have done if you do it today? You might have to ask your realtor that.

This is not an easy answer. Look at your options and then decide the best route.

Oh, and winter will be coming soon, so make your decision wisely - meaning if you stick it out, will winter affect the market and how long it will take to sell?
1 vote Thank Flag Link Thu Aug 30, 2007
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
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Sheldon, do you reallly think no one will notice it's the same house that was for sale a few months ago?
0 votes Thank Flag Link Sun Nov 4, 2007
I would suggest that you take the property off the market for four months and then bring it back on for the spring market. Lower the price and have another realtor give you an additional comparative market analysis to see how much the price reduction should be. By using this approach, the property will appear "fresh" and the spring market is typically stronger than the fall. I would also have a discussion with your realtor as to what realtors are saying about the property. In addition, ask your realtor for suggestions. Will painting or making improvements to the kitchen or baths help move the unit.

Keep in mind that most analysts are saying that the Fed should be reducing interest rates early in 08, if this happens, the spring housing market should probably impove.
Web Reference: http://SheldonChicago.com
0 votes Thank Flag Link Sun Nov 4, 2007
Drop the price. The longer you wait, the lower price you will ultimately get. On the brightside, CA real estate has a high inventory which will be to your benefit here.
0 votes Thank Flag Link Wed Sep 26, 2007
Before you do anything think back as to why you wanted to move in the first place, are there better opportunities for income for you there, or do you prefer a different lifestyle than the one you have in chicago, You seem to not be married or have children so the move is entirely up to you. Some people get bored of there day to day and want to challenge themselves in a new environment,. Only you know what truly is important to you. After reveiwing your options if moving is what you want to do look at your condo as a product. If it is not selling adjust the price of the condo or offer incentives like paying for a buyers closing cost or new appliances or a bonus to the selling office, get it sold,
I feel that once you explore other options you have mentally moved out it is a matter of time.

You made no mention if you had friends in California or a network of Business associates in CA, that would refer you to job openings, If you feel you have marketable skills and have confidence in your ability to sell your services to any company then do it life is too short. Sometimes too much advice just confuses you more. Only you can decide what you want. Good luck in your future endeavors. Trust your instinct, Its never going to be the right time for anything.
0 votes Thank Flag Link Wed Sep 26, 2007
Counting on anticipated proceeds is counting dollars that you never had. If your property is being professionally marketed, and you have not found a buyer, it is a pricing issue. If you only put a sign in the yard by yourself and haven't adequately exposed your property to the market, perhaps you need to consider that route.

By all means, move forward with your life. Do not let a slow market hold you where you don't want to be. Hire professional representation, price aggressively and good luck in CA. BTW, what part of CA?
0 votes Thank Flag Link Wed Sep 5, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
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Marcus, honestly, if I were you, I would base my decision on what income the new job will bring you. If you get a high paying job and you feel that moving to California is the best thing for you, then go for it, lower the price and see where you get. Also, I would double-check and make sure that your property is priced accordingly.

I hope this helps
0 votes Thank Flag Link Wed Sep 5, 2007
Marcus, look for a job now in CA..... call a head hunter, get that part of your life put in order.
The other issue, If you have been on the market for more then 60 days, with no offers then your pricing is off and needs to be adjusted. Don't let your condo be the reason why you did not move.
0 votes Thank Flag Link Mon Sep 3, 2007
PRICE, PRICE, PRICE instead of LOCATION, LOCATION, LOCATION is selling homes in this market.

Re-look the comparables and make your home stand out from the crowd.

You will more than make it up on the buying end if you play it right.

Drop the price and get 'er done.
0 votes Thank Flag Link Fri Aug 31, 2007
Assuming your home is listed with a reator, and doesn't just have a for sale sign on it, would say lower the price. It doesn't really sound as if you are motivated however, and in that case, now is not the time to dip one's toe into the water and test it, so stay put.
0 votes Thank Flag Link Fri Aug 31, 2007
Marcus,

I see that you asked a rent v. sale question earlier, and that you are in the Hyde Park area.

Currently, the average market time for 2 bed/2 bath condos in Hyde Park over the past 6 months has been 120 days, with a 62% sold rate at 98% of list price. Of course, this depends on the type of condo and price range; those in the under $149K range have a significantly higher market time than the those in the mid $200K range.

The 'sold' rate is not very impressive, but those that have sold have sold at near ask price. This shows how crucial it is that your condo is priced right.

If you really want to sell, make sure you do have it priced according to market. Also, have you had showings? What has been the feedback? If you haven't had any showings in three months, it's either priced too high, or poorly marketed, or, worse: a combination of both.

Did your Realtor share with you the data she used to come to your list price?

It's frustrating when you want to move to the next stage of your life but feel trapped by your current stage; unfortunately, and I don't mean to sound harsh, the money you "need" from this sale is irrelevant to the money this sale will net you according to the market. Therefore, having a bottom line in your head based on what you need vs. based on what is realistic according to the market will only slow the process and frustrate you further.

By the way, should you decide to rent, Hyde Park is a prime area for UofC students. It's a great rental market!

Also, if you want to continue to sell, have your Realtor utilize the university. This is a wonderful opportunity to pitch to student parents the perfect time to invest in a condo for their U of C student.

Good luck!
0 votes Thank Flag Link Fri Aug 31, 2007
If you are getting showings, stand pat. If you are not getting showings, take it off the market, or lower the price and sell it.
0 votes Thank Flag Link Fri Aug 31, 2007
Marion
The truth has to do with motivation. You don't "have to move".
You'd like to move "if you can get your price", which will keep you afloat for a few months..

So I would re-think the moving idea. God speaks most clearly through our clear and present circumstances. Maybe it's not time for you to move? Maybe you should stay.

You've got some good advice. The sale of your home is a means to an end, a way for your to accomplish an objective. if you want it bad enough you'll figure it out. If you don't, then it sounds as though staying (for right now) might make sense.
Keith
0 votes Thank Flag Link Fri Aug 31, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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Hi Marcus,

I don't know what price your condo is listed at, but if you have gotten no offers and are a motivated seller (need to sell) then the next step would be drop the price 8-10% . Most homes sell within 3-5% of the asking price with offers between 5-7% of asking price. So, if you have no offers (nobody is offering in that 5-7% range), the next step is to drop it down by at least 8%. You should then appeal to a new market of buyers and if you are priced correctly at this point and marketed effectively, you should get some offers.

If you don't want to lower the price (or you do and it still won't sell), I would pull it off of the market and have a Realtor pull up comps in late December, aggressively price it and get it on the market in mid-late January for theSpring market.

Now, that being said, you don't have any work lined up in California. I would heed the advice of others and take care of that. I would also suggest figuring out where you want to live in California and getting an idea of the housing market there.

Cathi Weaver
Web Reference: http://www.cathiweaver.com
0 votes Thank Flag Link Fri Aug 31, 2007
Marcus,
The reason for moving seems to be strong. Start looking for a job in CA now on line. If you want to sell you need to be top third in price and condition and you should be getting 2 showings a week. Real Estate and life can not be lived in fractions otherwise we just fade away. I say 'if it right it's right,' and then Nike say it best 'Just do it' Let me know if you need a good Realtor in CA.
Web Reference: http://TeamRenton.com
0 votes Thank Flag Link Fri Aug 31, 2007
If a home does not sell within 30-45 days, its because of price, product ot pitch. Are you working with a Realtor? (Not just an agent.) What are they doing to market your home? How does your condo compare with other condos in the area? Have you viewed the competition? Does your home show well?
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Fri Aug 31, 2007
The Hagley G…, Real Estate Pro in Pleasanton, CA
MVP'08
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If you need to sell and it isn't selling... lower the price.

Price is selling homes right now. At least in California. Location is still the most important thing but PRICE gets the home sold.

There are so many foreclosures out there right now. If you are selling and you are not in foreclosure... you still have to compete with those who are. If you don't want to drop your price, try offereing terms. Talk to your Realtor about that. Offer terms and get full price in many cases.
0 votes Thank Flag Link Thu Aug 30, 2007
A properly priced and marketed property should sell within the 30 - 45 days. I am guessing you have your home on the market with a Realtor. I would have my Realtor pull comparable on your home to see if it is priced correctly, how the market is doing and what I can do to get my home sold.

Since you do not have a job to go to I would search from afar as Ruth suggested until you found a job and then re-evaluate your situation. Good luck.
0 votes Thank Flag Link Thu Aug 30, 2007
Pam Winterba…, Real Estate Pro in Danville, VA
MVP'08
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If you have a job here in Chicago now, I would stick it out and job search long distance.
Ruth
0 votes Thank Flag Link Thu Aug 30, 2007
Ruthless, Other/Just Looking in 60558
MVP'08
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