Linda, Home Seller in 05739

Is the sellers market really THAT BAD?

Asked by Linda, 05739 Tue Sep 23, 2008

My mother put her one bedroom condo in Scottsdale on the market a year ago. It's in a nice complex. She used it for a vacation home as she lived in Vermont. She has since passed away and my sister and I have lowered the price on it twice. We are now asking $115,000. Our realtor down there has told us that she has sold other one bedrooms in that complex for that price, but she doesn't seem to be showing (or selling!) ours at all. I KNOW that it's neat and tidy and clean. What are we to do? We live in Vermont and have no idea if our realtor is making any effort at all to sell this. Is the market really that bad? We are paying association fees and taxes on something that we can't afford. Any advice would be appreciated.

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18
Roberto Ribas, , Scottsdale, AZ
Thu Jan 15, 2009
Well, now there is a short sale listed for $81k. Many short sales never work out, so that might not be a true comparison.

Gene: your offer of $500 to the neighbor lady to show/sell the condo was probably illegal. At least for the neighbor lady, that is practising real estate without a license.

Best of luck selling it. Unfortunately, this price reduction should have happened a LOOOONG time ago. Yes the market really is that bad, it is dropping at 2 to 3% a month, and has been for over a year. Yours is case where sugarcoating the market reality has likely hurt your chances for a sale.
1 vote
Kelli Michel…, , 85250
Tue Jan 13, 2009
Hi Linda,
I am also a listing agent in Scottsdale. Here is what I have found.... 1 beds are VERY tough to market with all the inventory and with falling prices. I just secured for a buyer a 1 bed foreclosure in GREAT shape both inside and exterior in OLD town for 68K. That is really low... If you want to get showings I would suggest you allow your agent to drop the price 3 to 5K a week until you get an offer if you want to get aggressive. I would suggest that you have her/him pull recent 1 bed comps and send them bi-weekly so that you can see what 1 bed units are really selling for. Not what they are listed at!! Remember our market is ever changing... 1 bed units are more difficult to sell no matter what. Photos are sooooo important. If you would like, just share my email with your realtor. I will take a look and offer feedback no problem! kellimichellec21@yahoo.com

Let me know if you have further questions. Allow your agent more time and understanding. $115,000 depending on location is probably still out of range. Buyers are focused on one thing right now and that is price! They are nervous about the economy and housing drops.

Have a great 2009!

Kelli
1 vote
Kelli Michel…, , 85250
Tue Jan 13, 2009
Hi Linda,
I am also a listing agent in Scottsdale. Here is what I have found.... 1 beds are VERY tough to market with all the inventory and with falling prices. I just secured for a buyer a 1 bed foreclosure in GREAT shape both inside and exterior in OLD town for 68K. That is really low... If you want to get showings I would suggest you allow your agent to drop the price 3 to 5K a week until you get an offer if you want to get aggressive. I would suggest that you have her/him pull recent 1 bed comps and send them bi-weekly so that you can see what 1 bed units are really selling for. Not what they are listed at!! Remember our market is ever changing... 1 bed units are more difficult to sell no matter what. Photos are sooooo important. If you would like, just share my email with your realtor. I will take a look and offer feedback no problem! kellimichellec21@yahoo.com

Let me know if you have further questions. Allow your agent more time and understanding. $115,000 depending on location is probably still out of range. Buyers are focused on one thing right now and that is price! They are nervous about the economy and housing drops.

Have a great 2009!

Kelli
1 vote
Bill Eckler, Agent, Venice, FL
Fri Jan 16, 2009
Linda,

Let's look at what we know about the market:

The economy is in the biggest trouble it has encountered in 80 years.

It is commonly know that we are in a buyer's market.

The present inventory of homes for sale is excessively large

Interest rates are lower than they have been in most people's lifetime

The number of short sales and foreclosures is staggering

Home values have dropped drastically

The vast majority of buyers are looking for DEALS

The reality is the market is much better than most people will give it credit. Homes are selling but the activity is in the lower priced market, where the consumer feels comfortable.
0 votes
Linda, Home Seller, 05739
Thu Jan 15, 2009
Actually, I did drop the price quite awhile ago. Then we had an offer of 90,000 and it fell through as the buyer couldn't get financing......that seems to be the case in many instances.

Thanks for everyone's input.
0 votes
Kelli Michel…, , 85250
Wed Jan 14, 2009
Hi Linda,

I got your post asking-What should I do... If you have the equity and your property is owned outright without a mortgage then reduce it down to $99000 and let the showings begin. If you owe on it and $115 is the payoff, you will be wise to seek a tax advisor to see if a short sale is alright. That is where they would have you write a hardship note saying that you have actively marketed the house and have had no luck at the current price. If your agent doesn't do short sales you should seek a short sale specialist. Be careful there are many out there that are SELF proclaimed. You should only use a short sale if you are experiencing a hardship with a property and the $fees. If they are breaking the bank you can consider that. If you sell you will be taxed or 1099 on the deficit on a non -owner occ residence. Talk to your realtor because seh/he has the listing and will help you with that advice.
BEST,

Kelli Michelle
0 votes
Linda, Home Seller, 05739
Wed Jan 14, 2009
Hi Gene,

It is listed on realtor.com. MLS 2891578. My Mom always said the complex was for older adults...maybe that is not the case. I've never been there...

Linda
0 votes
Mickey Carlt…, , Decatur, GA
Wed Jan 14, 2009
Actually the real estate market is fantastic! Interest rates are the lowest in years and it is a purchasers' market. There could not be a better time to purchase property that at the present time. Purchasing in the best location is a must.
0 votes
Linda, Home Seller, 05739
Wed Jan 14, 2009
Thanks for all the great advice everyone. We have had a couple of showings. One for a ridiculously low price and one that fell through because it was a Canadian buyer who was having a hard time finding financing. We have decided to rent it, although as there are no liens on the property we COULD do owner financing. It is an over 55 complex so not really a student type of place.
0 votes
Luetta Newnam…, Agent, Dallas, TX
Wed Sep 24, 2008
Best of luck Linda. Could you ask your Agent to send me a link to the property? I work with students and maybe it could be a fit for one. Never hurts to try.

My email is golf@casabuena.com

Have a Happy Day!
Web Reference:  http://www.casabuena.com
0 votes
Linda, Home Seller, 05739
Wed Sep 24, 2008
Thank you all for your insight (and Luetta for your condolences).

The condo is being sold furnished, so it isn't empty. That's a plus. And my Mom's homes were always "staged." She was just that way. They always looked very nice and decorated and neat. Although I know she didn't upgrade appliances to stainless or add granite countertops. She would have thought that a waste of money!

So... the consensus is to drop the price again, and I finally heard from my realtor there late yesterday and that was her opinion too. Drop the price to 100K until the end of the year, then rent it for the winter season if it doesn't sell and try again in the spring.

Linda
0 votes
Luetta Newnam…, Agent, Dallas, TX
Tue Sep 23, 2008
Linda-

Sorry to hear about your Mother. I hope you have success soon.

I would have to agree with most of the answers. As a Seller myself, I recognize the price driven market.
You most likely need to lower your price below $100,000 or rent it out. We are coming into our peak tourist season, not to mention all of the hundreds of people that can't afford their homes. Good Scottsdale rentals are hard to come by in the right location.

What part of Scottsdale is it in? If the property is at all close to ASU you can really appeal to the college market.

Best of Luck
0 votes
Tammy Medigo…, Agent, Mesa, AZ
Tue Sep 23, 2008
Linda,

The price range of your condo is smack dab in the middle of the price range of homes which are currently moving in this market. A study of market trends for this year show home prices are down however sales are up. The home you are selling is mostly likely ideal for a first time home buyer.

In addition to reviewing the current list price you may also want to consider seller financing. The recent tighting of available credit from Lenders and elimination of down payment assistance programs could also has had an impact on new home buyers.

If there are no current liens on the property you may want to offer seller financing. This will allow you to earn interest on your investment until the buyer is able to obtain conventional financing.

Be sure your agent or escrow officer is familiar preparing the necessary documents.

Good Luck and don't give up!

Tammy
0 votes
Keith Sorem, Agent, Glendale, CA
Tue Sep 23, 2008
Linda
Thank you for your question.
Over 1,700 homes have sold in the last three months according to Trulia. So there is not a problem with the market, The problem is your price.

If 1700 homes sold, then the question to ask your Realtor is this: I want this property sold. What is it going to take? Then take their advice. If it doesn't sell, then perhaps you need a new Realtor, however if you need to sell, the issue is probably price.

Here are some questions you can ask your Realtor:
1. How many homes am I competing with ?
2. Since my property was listed, how many homes like mine have:
-come on the market
-lowered their price
-gone into escrow
-sold
- expired.

HOme values are still declining, so market time will really hurt you. Price right, relaunch the listing, and get it sold. The properties that sell in the first 30 days on the market sell closest to asking. We expect 10-12 showings in most markets, or one offer, in the first two weeks. Maybe three weeks in this market. Otherwise a price adjustment is in order.

If a Realtor brings the buyer 90% of the time, Realtors know value and most of the time will only show an over-priced property in order to sell another.

Good luck.
0 votes
Linsey Plane…, Agent, Rancho Santa Margarita, CA
Tue Sep 23, 2008
I know the challenges of being an out of town seller. I've had to sell property of my own with an out of area agent and it definitely can be a little frustratring to feel out of touch. Express this to your agent and let your Realtor know that you would love some increased communication and a better sense of what is being done to get the property sold.

At the end of the day, it's price. I think it's time to reevaluate the comparables as has been suggested.

I would also dig a little deeper about the property itself. Are there any other circumstances affecting the sale, such as location in the complex or street noise? Were other units nicely upgraded as opposed to just 'neat and tidy'? Is it showing dark? What are the costs of staging in the area?

Evaluate the past agent feedback. Take it to heart and address what you can.

Evaluate the marketing in place. How are the pictures? Is it easily found on the various internet sites?

Try to look at the property through the eyes of the buyer, especially when looking at the comparables. In this market, you must look like a 'deal'. With all of the financial markets in turmoil, the only purchase that a buyer will feel confident about making is the 'deal' they found. They can justify it to themselves and friends.

Good luck to you.
0 votes
Paul Welden, Agent, Scottsdale, AZ
Tue Sep 23, 2008
Hi Linda,

In our buyer's market, it is very likely that NO buyers are interested in a one bedroom condo. You are doing a good and necessary thing by keeping the condo neat & tidy, but this is NOT the market to be selling real estate. You may want to consider just renting it out for a year or so until our market evens out or just dropping it to $99,999 to sell it quicker.

I would ask you current agent to send you a marketing report every 2 weeks so that you can track the marketing the agent is doing or not doing. For more information on creative marketing techniques, I welcome you to visit my seller's site.

---
PAUL WELDEN
REALTOR
HomeSmart
Web Reference:  http://CheapListingFee.com
0 votes
Donald Keys, Agent, Phoenix, AZ
Tue Sep 23, 2008
Linda,

It is such a buyer's market that there is a possibility there are NO BUYERS interested in a ONE bedroom Condo.

Have your REALTOR give you a list of all the SOLD Condos in the area that compare to yours and any PENDING (Under Contract) that compares to yours (1 bedrooms only) since January 1, 2008.

Then have your REALTOR give you a list of LISTED (On the market) Condos that compare to yours. If you take the number of LISTED divided by the number SOLD in the previous 3 months and multiply it by 4 you would have your absorption rate.

Example: 12 listed, 2 Sold in previous 3 months
Here is the math 12 divided by 2 = 6
6 x 4 = 24 months

This means if not one more Condo came on the market it would take 24 months or 2 years to clear out the current inventory. That is a "buyer's market".

Your absorption rate could be 3months, or 3 years.

Try the following to get it sold:

1) Professional Staging - An empty home has no soul (people can not imagine themselves living there)
2) Price Reductions every 7, 10, 14 days (whatever you feel comfortable with) until you start to get multiple showings in a week.
3) Consider hiring a professional management company (REALTOR) rent the unit out until the market comes back.
4) Ask your REALTOR "How can we get this SOLD?"

I hope this helps...

Find out what the home down the street sold or listed for: http://www.623RecentHomeSales.com
0 votes
Tonje Kearney, Agent, Scottsdale, AZ
Tue Sep 23, 2008
Yes the market is pretty bad, but you should have some showings if you are priced right. Make sure your agent keeps you updated with what marketing efforts she is doing, amount of showings on your properties and also have her show you where she is advertising the property. The most important marketing tool these days is the internet, so it is imperative that your home is properly exposed online. That should be pretty simple for you to check on even without coming down here.
Web Reference:  http://www.TeamKearney.com
0 votes
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