Obviously, the normal factors of condition and location of the property also come into play.
Agressive marketing techniques and having an experienced agent who can network and properly market your property also go a long way towards helping you achieve your goal.
Since putting a home on the MLS, while certainly not the only exposure I give to MY clients homes, should be enough to rule out #1. So, that means the home is priced incorrectly. However, that doesn't mean you have to accept it. You can work together with a realtor and a contractor to find out what you can do to spend the least and get the most out of your home.
Forget all the hype. You need to price your home compatibly. You do that by having your agent provide recent comparable sold property information. Then price your home with that information. Do not price it like other active listings, they are your competition. Active listings represent what a seller would like to sell their home for. If your home is on the market to sell, then you need to price it like sold listings. Do this and you won't be disappointed. Most real estate markets are continuing to decline at this time. Don't wait it may sell for less later. Buyers do their homework and buy the home that offers the best value. They may look at overpriced homes but only buy the ones that offer the best value. No Offers = Overpriced. Hope this honest feedback helps you to sell your home.
All the best,
It is all about what is fair market value today. You have not talked about comparable properties and that is your starting point. In general, I suggest dropping in 5% increments. Anything less does not get the attention it needs. Also pay attention to price points, most buyers stop looking in 25,000 price points. I like to talk to my sellers about what price bracket they belong in. If you are truly in the 325,000 to 350,000 and you price at 369,000 you are missing the buyers for your property.
It is all about the comparable properties.
Also open houses does not mean buyer traffic. Open houses do not translate into a ton of "qualified buyers". The qualified buyers are viewing your home through agent assisted showings. When I work as a buyers agent, my buyers tell me they are interested in a home, we schedule a showing and go see it to decide if it is a good fit for my clients. Very few of my buyers go to open houses.
One last point.... feedback. Good feedback is vital to see what is going on with your property. One bad comment does not make for a change but if you keep hearing the same thing from buyers and agents, it is either time to fix something or have a price change.
Enjoy - Cindy Nina-Soto
Another trick I use a lot is throwing and ad on Craigslist and stating "make me a crazy offer". You'll get 60-80 cents on the dollar offers site unseen.
What ever you do, don't just lower the prce thinking that it is going to change buyer behavior. That's about the worst thing I can think of. Expect any offer to be less than you have it listed for too...
I personally like The Traffic Approach. To understand the traffic approach, we need to turn our attention again to the â€œreasonable range.â€ Real estate is entirely different from liquid investments with absolute values. For instance, anybody can look up a share of stock and immediately see its current price. But because values are subjective in real estate, there tends to be about 10% flexibility in the price range. Consider a home that's valued at $100,000. It's not worth exactly $100,000! It's really worth between $95,000 and $105,000. If the price drops below $95,000, nearly everyone will agree that the house is a good deal; and if the price goes above $105,000, nearly everyone will agree that the property is priced a little too high. However, within the "reasonable range" there is little price resistance.
Here's how the traffic approach works. Instead of listing the home at the low end of the range, you raise its price to the high end. The problem? Now there's no compelling reason for anyone to show it or buy it. Okay, here's the secret weapon: you raise the commission by 2%! What you're doing, effectively, is â€œbribingâ€ agents to include your listing on their show lists. What I do is raise my commission from 6% to 8%, and then I raise the price about 10%. The client then nets about 8% more money before any negotiations!
Sometimes, not often, the appraisal knocks the price down a bit. When that happens, it's usually a minor adjustment, and then the seller has the option of lowering the price to match the appraisal, or else the deal, as written, falls apart. The buyer also has the option of paying, out of pocket, the shortfall in the appraisal or canceling the deal if there's an appraisal contingency. When that happens, the client knows that he got the absolute top dollar for his home.
Now, I know that almost any agent will immediately say, "I never look at the commission when I'm working for a buyer." But I don't believe that noble-sounding claim because statistics clearly indicate that it's not true. I don't know any agent who would willfully sell a buyer client a home that wasn't right for him; but if there are sixty homes in the market that generally match the client's criteria, and if three of those homes pay higher commissions than the rest, it's certainly not unethical to make sure that those three properties end up on every show list. In addition, there's nothing wrong with hoping that your client chooses to buy one of the three. If he doesn't, no big deal; but if he does, you just got a big bonus!
One of the questions I'm often asked is why I don't just offer a bonus to the selling agent. Once again, the answer is simple. Every buyer's agent knows that if he doesn't present a full offer, the first money to come off the table will be the selling bonus. Since most homes don't sell for full offers, the selling bonus doesn't happen very often, so the buyer's agent can find himself torn between not getting the bonus and not representing his client. If he advises his client to offer less than the listing price, he knows that his bonus is most likely gone. On the other hand, if he encourages the buyer to pay the listing price, he's probably not fully representing the buyer's interests. For that reason, the selling bonus is often a disincentive rather than a legitimate incentive.
Pass this info on to your agent
Century 21 Tenace Realty
Your house has become stale on the market. In the minds of buyers and Realtors your house seems to have something wrong with it. Having a home on the market for one year can make many people uninterested because they have seen it for so long it becomes invisible to both buyers and Realtors. The marketplace has now deemed your home as a problem home because it hasn't sold. Bottomline, buyers think there are major problems with your home and will probably offer way less money for your home today than they would have in the beginning stages of selling your home.
Ask your realtor to refresh your listing so that it shows up as a new home in the new listing search on the MLS for your area. Also, have your realtor do another current market analysis to see what homes have sold and at what price homes are currently selling. You will be doing yourself a disfavor if you are looking at solds more than 3 months unless nothing has sold in your neighborhood in that time.
Also, make sure that you have pictures on the web and I strongly recommend a virtual tour if you do not have these as part of your current listing. If another price reduction is needed have your Realtor contact all the agents who have shown the home to alert them to the new price reduction. Emailing all the Realtors with a price reduction flyer may also refresh your home in the mind of agents who have shown your home over the past year. I wish you all the best in selling your current home.
Good luck with your sale.
Jennifer Pollock, CRS
Keller Williams Denver Central
210 University Blvd. #600
Denver, Colorado 80206
I have sold real estate for over 20 years. A rule of thumb I use is no more than 4 weeks at a price point. Every 4 weeks you need to reduce the price by $5,000 or $10,000 depending on your motivation level and timeframe you want it sold in. If you are getting a good amount of traffic, drop it $5,000, little or no traffic drop it $10,000. I have found this to be a good rule of thumb in any market, especially this one. Another thing to consider in this market is town tax assessment. Odds are that if you are priced higher than the assessed value, you won't get it sold. We have the stats to show you. I wish you luck.
Annmarie O'Donnell, Broker
ERA Morrison/TOP Realty Division
Give me a ring and I'd be happy to review your scenario and discuss viable options - of course, without sales gimmicks, etc. I perform homeowner seminars and would happy to help if I can. Also, check out robust website to learn more.
Unfortunately only a small number of homes actually sell during an open house.
You have to have great curb appeal to entice buyers to look inside the home. Once inside, you need something that will make them fall in love with the house. Take a look when you enter the front door as if you were going to purchase the home. Remember what made you purchase the home and try to accentuate that area. You might also want to consider the services of a stager if you are having people look, but still are getting no offers.
A good number of the answers here indicate that you need to research to see where your home should be priced. I could not disagree more; that is the reason that you hired a Realtor. He/she should be willing and able to watch the surrounding market statistics and make suggestions for price adjustments as indicated by the market.
Normally if you have showings and not offers the price is too high.
What feedback have you heard from buyer's agents?
Remember, it's not what you paid, nor need to make, that is important to buyers.
Buyers want value. If other homes like yours have sold, do some research and consult with your Realtor.
Trulia currently shows 67 4-bedroom homes for sale in Billerica. Hopefully you can find some comparable properties that will give you an indicator of the best current price for your home.
Customer Service Representative
So, the lesson is to get people to call your agent, then have a 2nd chance to sell the house to a prospect. I guess you can find other ways to do the same but its worked for me the 2 times I did it. Lowering the price doesn't get as many 2nd chances calls.
Might I suggest that your agent take you to view your competition (the other listing on the market)? I know not all market areas are allowed to engage in this strategy but here in Rancho Cucamonga, CA it works very well.
This marketing strategy helps you, the seller; understand first hand what the buyers are seeing. This type of information is critical in order to make an informed decision as to how to not only price you property, but to know what incentives are needed to attract your local market buyers.
Pat, did your agent poll the other agents who where at the broker open houses and asked them what they think the house should be listed at, or would sell for?