David Matney

Brad, Troy Benes is a good guy, tech savvy and a very hard working agent. I would feel comfortable referring him a client in the Lincoln area. His number is (402) 658-6522. I also believe he attended UNL so he would be a great fit for your client. - Sat Nov 8 2008, 07:17

Kiffany, thanks for the additional information. Here is just a few more thoughts. If the sellers are FSBO they either are 1) not really motivated or 2) they do not have enough money to pay Realtor fees. Just because a home is being sold as by a non-represented seller doesn't mean you have to be non-represented. Talk to your agent and many agents will still help you purchase the home and the agent will represent YOU. Representation by the right Realtor will pay for itself. In fact, your agent can have the seller pay the commission.

Go ahead and make an offer - it doesn't hurt. I really suspect that the sellers will not be able to tolerate that amount of loss - especially if they have no money to bring to closing. Again, if I were you I would consult your Realtor. Your agent can perhaps negotiate a "short sale" with the seller's lender. A short sale is when a seller sells a home and the lender accepts less than a full payoff for the original loan. If the seller is in a hardship situation many lenders will accept less than full payoff. The seller made a mistake by telling you that they have to move because of job transfer - this puts YOU at an advantage in negotiations because you know their motivation. They should have told you that their "housing needs have changed." Good luck with you pursuit of this property. - Sat Sep 20 2008, 20:08

Kiffany, you ask a very good question. This is a generic answer because I have not seen the home nor have I done a Competitive Market Analysis for the property - every situation is different. Homes sell at market value and that is determined by the market. My concern from the information in your question you said, "homes across the street sell in the range from $150K-$170K." Buyers looking for a $275K home look in a 275K neighborhood.

Are you buying the most expensive home in the area? This might make it a challenge when you sell the home. If the sellers absolutely have to sell, who knows what they might be willing to accept? You can always make an offer. However, keep in mind the sellers even if they have to sell might not have the money to cover the deficiency in the loan? Assessed value is in no way related to market value.

When you write your offer, I would write that the purchase is "subject to property appraisal at or above purchase price." If the home is not worth the appraisal value then it allows you an escape. My guess - is that more than likely the sellers will not accept an offer of 210K. But, you never know - it depends on their motivation. I would talk to your Realtor and get advice from a local agent in Lincoln who knows the area and the market. Good luck on your home search. I included a link to my blog, I have posted several posts helpful to buyers when they purchase a home. - Sat Sep 20 2008, 15:23

I will say that you are creating a "buzz" and interest in your property just by talking about it here on Trulia. Peter, you may very well be priced right at market value. Homes at market value sell at average market time. Looking at the last 3 months for your sub area the average market time is 54 days. It may just be a waiting game. Hopefully, it will not take that long. Another site you might want to try is posting your home to Postlets.com. It is free and it has great web syndication. It is tough if the homes around your property do not have the same amount of the curb appeal as your home. - Tue Jul 15 2008, 13:03

Proper pricing is marketing. The best marketing plan on the market will not sell an overpriced listing. Some sellers are even finding that when there house goes under contract, the home will not even appraise for the price on the contract. If the home does not appraise then the buyers can not get their financing.

Face it, one of the biggest challenges for most buyers is financing. That is why the market is the way it is. What about advertising to potential buyers that you pay some of their closing costs? Just a thought.

On traffic, do you know how many "hits" you are getting online? Some sellers might have 2,000 property views online and then have only 20 showings. That means 1,980 people looked at the home and only 20 people liked it enough to make an appointment to see the home. That means they are rejecting the home online.

If the home is vacant then I would strongly recommend professional staging. The next option is renting?

Thanks,
David Matney
Allance Real Estate - Tue Jul 15 2008, 06:36

Peter,
There are many factors affecting price and I agree from looking at your home on the MLS your home really looks nice from the photos on the MLS. Sometimes updates will make a home more marketable and may help it sell quicker but it may not necessarily net you more money. Location has a HUGE impact on price. If your home was located in a different location it very well could be worth a great deal more. If you are now at "market value" at 99,900 then in reality your home has only been on the market for only two weeks. At $110,000 your home was listed - but it was not "in the market."

How are the properties surrounding your home? Sometimes a neighbor may be killing the sale of your home because maybe their home has some deferred maintenance. Buyers are not just looking at your home, but also looking at the properties of the area.

Other external factors are the amount of inventory in the area. Your home is in sub area 2223. In the past year, 112 residential homes have SOLD. Therefore, on average about 9 homes sell every month in that sub area. [112/12 = 9.33] Currently, there are 78 active homes on the market in that area. Which means it will take approximately 8 months to exhaust the current inventory. [78/9.33 = 8.33] Keep in mind, every month new listings enter and other listings leave the market either they sell or the listing expires. Homes follow supply and demand, if supply increases price decreases. Many sellers especially if they purchased in the last few years have to bring money to close.

The entry level market has seen a large decrease in the number of buyers that can even qualify. Buyers who qualified last year are now being turned away empty handed. Many buyers are asking the sellers to pay several thousand dollars of the buyers closing costs. I wish it were different.

This is being extremely picky but I woud suggest removing the border in the kitchen. Most buyers see wallpaper and then they think of the work that it takes to remove it. Is that that big of deal, probably not. That was the only thing I saw that jumped out at me.

If you believe you are priced right, it may just be a waiting game. The best time to sell a home is the first 30 days, after that the home becomes "stale" and folks start to wonder what is wrong with it. When a home first enters the market that in the ONLY time there is pent up demand for a home. Buyers control the market. Right now, buyers believe the market is worse than it is and sellers believe the market is better than it really is. I hope this helps and if I had a buyer that was interested believe me I would be the first to show your home. David Matney with Alliance Real Estate. - Mon Jul 14 2008, 16:39

Peter,
You are asking a great question. Unfortunately, there is only one reason why a home does not sell and that is price. It sounds like you are getting great traffic and positive feedback that indicates a PRICE problem, not a marketing problem. Homes in Omaha are selling and if you want to sell you have to be the most compelling VALUE compared to the competition in the area. Here are a few tips I would recommend that might help. I would have the home pre-inspected. The 100,000 price range is entry level market, ANY little item that needs fixing HAS to be fixed otherwise you are giving the buyer and excuse to eliminate your home. Also, it is also a good idea to have the home professionally staged. Have you ever visted a entry level Hearthstone home in Omaha? An brand NEW entry level Hearthstone can be purchased in the low 100's and their model homes look impeccable. That is TOUGH to compete against. Given a choice of NEW versus OLD the young buyers will typically pick new. On price point, I prefer to list a home exactly at 100,000 instead of 99,900 because your home is invisible right now for a buyer seaching online between 100,000 and 110,000. If you price at 100 then you home is visible for buyers seaching 90-100 AND 100-110 thus doubling your exposure. However, since you are getting good traffic I would suggest lowering to at least $95,000. I hope this helps. P.S. I would LOVE to bring you a buyer! I am Licensed Broker in Omaha, NE - Mon Jul 14 2008, 12:40