Ruthmarie:
Thank you for your observations.
The improvements made to house were new heat/ac 18SEER pump (worth about 10k), new windows (we have a ton of windows.. we did get a discounted price because we are friends with someone that does windows but it would of costed 10-12k, we paid 8k ). We put new carpeting in DR, new sump pump, water heater and had radon tested and abated (it was a part of a warranty so we're out nothing -- but I like the peace of mind factor). We also found last November (on our yearly inspection) a tiny bit of termite activity near our porch so we had the house treated and have a warranty to pass along. We also just replaced the fridge and stove a few months ago so the kitchen looks really nice. I had wanted to re-do cabinets/countertops but we ran out of time... what we have does look updated (countertops are only 2 years old) vs some of our competition but it's not the designer kitchen I'd want to put in if we were staying a little longer.
Hope that helps. Again, Cincy's run up has still only been 3% per year.. even in the hot market.. it wasn't nutty. We probably should of stuck to our guns when we bought.. (we offered then 275k, they countered at 281k so we took it.... they were asking 299k). Bottomline I would of purchased back then for $299 if the mechanics had been updated...
So to net out.. we put in about 30k and a lot of sweat equity (painting, flooring etc) and I only hoped to get at best 15-20k back.. since we added the curb appeal back to the house..
I guess one could say someone can move in and enjoy cheap heating/cooling and know all big ticket items have been replaced. We also put down new flooring in our laundry room (which doubles as a hobby room/mud room). We also added to the professional landscaping so it looks nice.
We did other things that are small like we've staged the home. We freshened up the paint. I guess from huge projects, we never did what we wanted to do to move our house to the 340k price range.
The only other thing I know that was huge is we replaced the cedar siding and changed the color. The original color was disgusting and I can't tell you how every neighbor has complimented us on the choice (this was done last year).
So while our fixer uppers weren't in line with making it fancy. - Thu Aug 2 2007, 17:26
Ruth, Thanks for sharing! I did a pull at houses in my town (my house is listed at 300k - to capture the higher end folks and lower end). In the price range of 275k to 315k there are only 7 houses. I've been in 2 of them. One is arguable nicer in many ways and 1k lower then mine but on a very busy street -- someone with kids isn't going to let their kids out unsupervised to play and the other down side is it's a cookie cutter home with a garage in the basement. The other has been on market for almost a year and its' not updated inside.. dark and dingy.
I've done drive by's of a few others and I honestly.. wouldn't want to live in the other neighborhoods just because the house might be nice but there is a huge apartment complex 1 block away and truly unkept inexpensive housing (like 115k range) as your entry point to the subdivision.
My house does have one entrance that has lower priced homes (150k to 275k) but they are all neatly kept up to the point I am getting ideas of landscaping from the cheaper homes down the street.
The other entrance to my neighborhood are 750k+ custom homes (I can walk to the last few lots being built in less then 5 minutes).... I can't compete with these but I am also only priced at 300k.
My concern is something is wrong with my house with the lack of traffic but I bought the house for 281k in May 05' and I think the purchase before us was 273k in Nov 04 (the owners got a job transfer and had updated some things when we bought it) and before that was like 2000 with purchase price of like 220k.. so to the folks saying lower.. lower to what??? we don't have anywhere to go really. There are houses of similar size and ammenities going for 175k-225k, but they aren't in my subdivision. If someone wants a slightly unique (meaning it's not crazy different but it's a custom home ) then they pay a little more for it.
In judging my home vs. the ones slighty more expensive I think I come out a winner.
My gut is telling me to calm down, regroup and stay firm on price of 300k until I have an offer. Once we lower price we're done with negotiations.. we won't have any room.
Thanks for everyone's thoughts and advice. I know there is as happy ending somewhere. - Thu Aug 2 2007, 13:34
Carrie:
I fired my agent last night. I gave the 30 days notice to get out of the contract. The challenge with my agent is probably perception and the fact that I told her what I needed as a client (feedback, calls, advice etc). Thinking back, she never presented us with a CMA. I had several from other agents. I told her upfront we were experienced home sellers.. .I don't think she's an experienced agent. Her company is supposed to be so aggressive but now that I've worked with them, I see that their process to sell.. leaves out room for doing whatever it takes to sell a house.
My husband who never every gets upset, is the one leading this charge. If we pay full service, we expect full service. I really understand the rush to defend my agent, but beleive me.. if I had to stay full service (which we might still do).. I'll go back to my old agent whom I loved.
I am to blame b/c I never should of gone with a different agent to sell my house. It's like trying to fit a square peg in a round hole. My expectations are very high.
Also, if our house doesn't sell in 30 days (while they have the contract still).. then it will be very stressful and price will drop etc. I need to be with an agent (or with a flat fee MLS service aka ourselves) that is going to understand how to work with me during stressful times.
I really wanted to know what Flat fee services were acceptable if I was to go that route. I don't want to get ripped off by some scam artist on line.
I require to get on MLS and the various other sites like WSJ, realtor.com, trulia, etc. I need a lock box and a sign for yard that won't turn off an agent so it would need to not say.. For Sale by Owner (b/c we would certainly pay the 3% if an agent found us a buyer)
I would want to be able to keep the extra 3% if we found out own buyer. The flat fee MLS services I've found are ranging from $499 to $799 and one or two that will do it for $1500 just for MLS and $3500 Flat fee for MLS and a few other features.. trouble is I can't find my own buyer.. I must still use an agent so the contact isn't open.
Yes, the market is tricky. I am going to run the numbers to see if actually taking a loss is good for us at tax time. - Tue Jul 31 2007, 07:25
Hi again.. Ok.. I really appreciate everyone's input.
Keith Soram... Ok.. we're moving because of my job transfer and we aren't buying right away. I want an offer on house by end of August so I am motivated. However, I only have another 10k to play and then I am in trouble. Again.. at this rate, I should not of updated anything and just taken the price off the top b/c at this rate.. my house flows better, updated and buyers want that and the same cost of the crappy homes in the not as nice neighborhoods.
Here are some facts (regardless of outcome right now)...
I am listed with a seller only agent. that agency will get 6% for the full service. I am receiving poor service, in way of communication. The company is very aggressive in many ways and told me my listing price of 300k was solid as of 3 weeks ago.
I do not like my agent, although I am completely being nice and trying my best to get what I need from her. I am in sales myself and very inpatient and aggressive.
She is telling me to chill out it's only been 14 days and give time for the "process" of marketing to kick in.
This is house #4 for me and realize the ins and outs of house selling.. obviously not everything but I have learned a lot over the years.
The other comps I got told me to list my house for 320k and 315k and I wanted to do 300k because I wanted to sell it quickly.
Average days to sell is 66 days. I am ok with that if we can do that. The average price drop I've found is about 1% from Listing price, but that came from an article I read last week in the Business Journal of Cincinnati. I could be mistaken. I wish I could site it for additional feedback.
There are other houses with similar squarefootage but they are not as desirable subdivisions.. I know this because when I bought 2 years ago I had been doing research on neighborhoods for a long time --so I know this area.
We toured 3 homes that my agent thought was our competition. Out of those three, 1 was nicer inside but had the garage in the basement so you have lots of stairs, and was on a very busy street with a not so great neighbor (parked cars on lawn for sale). 1 was price 20k lower then ours but really nasty with very dated cosmetic details, mechanics and .. has been on market for a year. The third one was nice but very cluttered and lacking some of our curb appeal and didn't have the updates. In fact, none of the houses had any of the mechanical updates. I realize you don't get all your money back on that stuff but thought it accounted for something.
I figured with the price of energy, our low energy bills would mean something!
So we're back to price.
I was trying get out of my contract and put back on MLS with flat fee service that will also give me a lock box and a sign. I'd put my cell phone on it and of course pay an agent 3% if they bring a buyer. We are already getting calls for showings and my agent is taking 24hrs to 48 hrs to get feedback from showings.. I would just rather call myself to get more immediate feedback.
If we move in Sept as I think we'll be doing (house sold or not) .. we'll leave our sparsely furnished house as is.. hire a cleaning service and have my inlaws water lawn, cut etc. We'll look like we're here but we won't be.
My agent told me she thinks it will pick back up in September.. that seems odd to me.. I would think we have August and that's it for awhile.
Again.. if I went with flat fee service for $499, then I could drop price by more then 10k and still walk out solvent.. this MLS service I was looking into populated more then MLS.. it also did a bunch of other websites.
I am frustrated because Northern KY's market up til a few months ago wasn't supposed to be a problem. It's getting freaked out (I've read) because of Florida and California's troubles.
Again, we haven't had the run up of prices like other parts of the country. We only had 2 showings and my agent said all showings for all houses are down.. she didn't think price was a factor but that there just weren't people out.
Am I being strung along? I do think this will sell.. I am hopeful, just anxious and balancing my anxiety with reality. If the market is that bad here.. I wish it would drop more quickly in Florida..
The first house I sold in 2000 sold in 1 week. My second house I sold FSBO in 2 weeks ( this was fantasy land Orlando in 2003 .. and we made 20k on the deal... ) I would never expect to make that again on a house. My third house I rehabbed and walked out pocketing 10k and sold in 2 weeks. Here I am on #4 realizing that I will never again buy a house that needs work done on it unless it's really undervalued.
The sad thing is when we bought the house we would of paid more if it had been updated. It's not cookie cutter.. but a well built custom home from the 80's. - Mon Jul 30 2007, 18:09
Jennifer, So you think lowering price immediately - even after 14 days is critical to success? I appreciate everyone's thoughts/advice. Price might be key, but so will be getting out without short selling. Our market hasn't been crazy.. Northern KY hasn't seen the build up everywhere else. I put 30k into my house over the last 2 years for windows, new siding and paint job, landscape, new furnace/ac, sump pump, water heater and overall freshed up place and never expected to get all 30k out.. what I expected was 3% appreciation on what I paid which was 281k.. I am listing for 300k. I don't have much room.. It might be that there isn't a lot of buyers.. I was told only 8% of houses are pending which my agent said was crappy....
If I thought it would pick up in a few months, then I'd wait it out. Cincinnati doesn't have a economy problem or over priced housing -- overall... I am still within 15 minutes of downtown and one of the lowest priced homes in a very expensive neighborhood.... granted.. i realize it's subjective. - Mon Jul 30 2007, 16:21
I expect to pay an agent 3% if they can sell my house and keep it if I find the buyer. I want out of my current contract (I have to give 30 days) but need to have a new way to sell this house.
I need it on the MLS and I either need to lower price to generate more interest (we've had 9 showings in 14 days and out of those 1 was my listing agent showing a few other agents and 2 cancellations ). Decent feedback so far, except 1 that said it was overpriced and wasn't going to keep looking in our county.
I don't mind getting the calls and setting the appointments, as long as there is a lock box.
If I lower price, I need it to come out of something other then my pocket. Right now, based on Trulia, I am priced at $109SF (average is $117).
I am not happy with my agent.. obviously if the house sells in 30 days I'll be excited but I won't recommend them to anyone else.
The money saved if we switch will be to lower the price so we can hopefully walk away with enough to pay off the new appliances and closing costs. I do not want to bring money to closing and I can't let it sit much longer without serious movement/interest. - Mon Jul 30 2007, 15:04
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