Our home has been on the market for over a year and a half. We've reduced the price and still no offers. We cant afford to rent it out.

Asked by Screenhome123, Streator, IL Sat Dec 5, 2009

we've already switched realtors once. Should we switch realtors again?

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20
Beckie Chism…, Agent, Streator, IL
Sat Dec 5, 2009
I agree with Mr. Tepper that you need a current CMA done on the house and I especially agree that you must be the best value than any of the others currently on the market. However, markets are local and the price level your house is at may have something to do with it. Streator currently is stagnant on selling upper priced homes even though many of the homes in Streator are at an excellent value when reviewing a 40+ radius. Many people do not want to reduce the price of their homes, mainly because of the emotional factor. But it is proven that price does matter in this type of market. I would suggest you talk to your current Realtor and ask them for comparables or even a complete Comparative Market Analysis (CMA). Even if you have had one before, after 18 months you will see a difference.
4 votes
Debra (Debbi…, Agent, Livingston, NJ
Sun Dec 6, 2009
Screenhome...... Dp summed it up quite well in regard to price.

As agents, we have all heard the famous last words: "I am not going to give my house away"! The truth is...it's not "giving it away" if no one will pay you more for it. This is a painful and difficult concept for most sellers to accept.

I have a pair of size 8 jeans sitting in my closet....I look at them wistfully....if only they still fit.....but unfortunately, they don't, and I have to deal with fits NOW, not what used to fit !!! (get my point?) :)

Anyway, maybe at one time your home would have sold for 150,000 or more, and maybe you even paid that much..........but, unfortunately, that's not what it is worth today. It is worth what someone will pay for it.

Back to price............why wait..get the price down now.........you home has already been on the market too long...it becomes stale, and buyers wonder what's wrong. Peel off that proverbial bandaid quickly.....small reductions just prolong the pain.

If you want to let the listing expire, give it a rest, and try on your own for a few weeks,.....following Rock's advice.....that's your call. You still need to deal with the price even if you decide to go with that option.

Just a small plea for your agent...it sounds as though he or she is going to become the scapegoat.......you will find a new agent, reduce the price, and then it might sell. New agent becomes the hero.

There's an old joke that says the second wife makes out better than the first one.........so does the second..(or third.. agent)!! If your current agent worked dilligently on your behalf, don't make him or her bear the brunt of your frustration with the market.

Good luck............let us know what happens.
Debbie

PS...Rock - you can always sic Mrs Rock on Dunes! (hope he isn't reading this!)
2 votes
Dp2, , Virginia
Sun Dec 6, 2009
There's a flaw in your line of thinking: "I hate to sell 150k home for 100k but this economy. . . ." You don't set the price for your home; instead, the market does. It's up to you to determine whether you're willing to sell your property at its current market value.
2 votes
Don Tepper, Agent, Burke, VA
Sat Dec 5, 2009
Sean's right. Your price is too high.

Ask your current Realtor for a CMA. A current one. Then actually go and view the properties. See how they compare to yours--size, location, condition, price, etc. Yours has to be less expensive and offer more value than those others. Then talk with your Realtor. Ask, specifically: What do we have to do in order to sell this home in the next 3 months? Then stop. Listen. Pay attention.

if your Realtor doesn't have a concrete answer--probably reduce the price, possible do some repairs or repainting, possibly market the property in new or different ways--then proceed to the next step.

Contact two other Realtors and ask for a presentation from them. They both should provide CMAs as well. How do you choose them? Drive around your community with a pad of paper. Begin at your home, then work in a spiral outward. Write down the name of each Realtor and each real estate company with a listing in your area. Continue until you see a clear pattern. Call the top two listing Realtors. They're active in your community. (There are other ways, too, of course. But you want ones active in your community.)

Then call them. The Realtors. All they'll need is your address to pull up your entire history--how long it's been on the market, the price reductions, how it's been marketed, etc. Invite them to give you a presentation.

See how it goes. Weigh their presentations. Listen honestly for their advice; even if you don't say so, they'll know that if your home's been on the market for nearly two years, you're looking for an effective way to sell it.

Make your decision accordingly.

Hope that helps.
2 votes
Sean Dawes, , Philadelphia, PA
Sat Dec 5, 2009
Well instead of switching realtors why not look at the other reasons why it is most likely not selling....price.

I guarantee it is priced too high.

What are the realtors telling you it should be priced at and where is it priced?



Sean Dawes
Web Reference:  http://www.SeanDawes.com
2 votes
Screenhome123, Home Seller, Streator, IL
Sun Dec 6, 2009
Thanks for all the answers everyone. If it hasn't sold by january I will probly drop another 5-10%. its frustrating but I have to do what needs to be done. i hate to sell 150k home for 100k but this economy is awful and the lenders arent helping anyones situation.
1 vote
Dp2, , Virginia
Sun Dec 6, 2009
First, you've already received several great answers.

Second, unfortunately if you dropped your price 15%, and if the prices for similar homes in your area fell 20+%, then your price reductions won't matter. It's not only important that you reduce your in this market; you have to reduce it ENOUGH within a specific time period. Had you reduced your price by that 15% sooner (like 6 months ago), then you might have already sold your place by now.

Third, another great equalizer--besides price--are the terms that you're willing to offer. Although you need to sell your current home before you move to another one, you don't need to close with an all cash offer. You could offer seller financing, and structure your sale to close with enough cash for your down-payment for your new place and your closing related costs (including the commissions). You could also offer to temporarily buy down the interest rate for a buyer using a conventional, FHA, or VA loan. There are plenty of other options, and you're only limited by your creativity and budget.

So, go do what the others said: get real with respect to your current market conditions, and get it done.
1 vote
Sean Dawes, , Philadelphia, PA
Sun Dec 6, 2009
Have another realtor price it. You say you reduced it 15% off list price from 6 months ago. Some realtors overprice homes.

If it were 15% less than market value, it should be sold by now. So I still am sticking to it is not priced right to reflect todays true value.




Sean Dawes
1 vote
Screenhome123, Home Seller, Streator, IL
Sun Dec 6, 2009
i think its just a bad market for 100k+ homes. like i said we reduced the price already. nearly 15%. 15% less than what our realtor appraised it for 6 months ago. with that said, the average price in streator for home sales according to trulia is about 80k. now i dont want to give the house away. like i said we've already cut nearly 25k off our price. and we nearly had it sold a year ago for higher than what its priced now (realtor took to long for the buyers needs hence the switching of realtors)I'm wondering what if we drop it to 80k (another 20% to try to intice a bidding war. any thoughts or is this a bad idea for where the house is located. anyway i belive our contract is up in january with our current realtor. i think we'll drop another 5% off the asking price and give them 30 days to sell it before signing with a new realtor. if you cant move a house thats 20% less than what you appraised it for than you cant move the house and were looking for someone else.
1 vote
Jed Lane, Agent, Petaluma, CA
Sun Dec 6, 2009
Assuming that there are homes in your area selling, it has to be price more than the Realtor. The old adage that you could sell a home in the middle of a freeway if it is priced correctly is true.
You need to position the property so that it is tne next one taken of the shelf and that will probably mean taking it off the market getting it ready and going back on at a very aggressive price. Bring the crowd to the door to see the jewel you are selling and generate desire for the property.
Again if there are buyers out there they have been looking and comparing homes for sometime and they know value when they see it. If you can get at least two of them interested in the property you can get them to bid in competition and negotiate the highest and best price for the property in the current market.
1 vote
Anna M Brocco, Agent, Williston Park, NY
Sun Dec 6, 2009
A home is worth what someone is willing to pay for it; it doesn’t matter what the seller “needs” or potential buyers can afford to spend. Market conditions do matter as does the immediacy for a transaction to take place. In setting a price, it is in the seller’s best interest to focus on the current market conditions in conjunction with general economic value projections over the next six months. Such projections are useful in the negotiation process and when cited in the seller’s interest will yield the best selling price.
1 vote
Debra (Debbi…, Agent, Livingston, NJ
Sat Dec 5, 2009
Rock gave you some good advice (hi rock) - as did others here.............if your area is saturated with foreclosures and short sales, that certainly can affect the level of desirability from a buyer's standpoint. You then have a big mountain to climb.

Switching agents is not, in my opinion, the answer, unless of course you think he or she has been derelict in some way.

Price is the great equalizer.

On the market for over 1.5 years? That's not good.
Either bite the bullet, and make a substantial reduction in price..........or take it off the market and stay there for the time being. A new agent isn't going to have a magic wand. You need to be priced BELOW the closest competition.

Good luck and best wishes to you..........
1 vote
Andy, , California
Tue Aug 9, 2011
Conflict of interests is one of most propular issues between pre-listing advisors and sellers.
0 votes
Alice Green, Agent, Utica, IL
Tue Aug 10, 2010
Have you gotten feedback from your agent? You need to know what potential buyers are seeing when they are walking through your property. Are you marketing your property? In this market, you need to make sure it's getting out there, just sticking a sign in the yard won't do it in today's market. Good luck.
Web Reference:  http://www.alicegreen.com
0 votes
Carole Garre…, , Illinois
Thu May 27, 2010
dear screenhome123

Really curious what happened with your home. Did it sell? Did you get another CMA or perspective on the value of your home.
Homes in Streator are selling, if priced correctly. Surely you realtor gave you suggestions to upgrade your home with little expense. Does it have curb appeal?
There are many factors to consider and without seeing your home it is difficult to determine the listing price.

Hope you had some good luck, and a good realtor
Web Reference:  http://www.airlogic.net
0 votes
Barbara Q., , Bergen County, NJ
Mon Dec 7, 2009
Screenhome- If you really want to sell...
1.) Price it aggressively
2.) Offer incentives
For Example: "Special Financing!!!"
(You do not hold the mortgage- you just pay ~$2,000 in discount points at closing to buydown the Buyer's interest rate.)

Calculate cost for seller & savings for Buyer:
http://www.321advantage.com/sellers-calculate-your-rate
Web Reference:  http://ww.321advantage.com
0 votes
Screenhome123, Home Seller, Streator, IL
Sun Dec 6, 2009
@ dp2 yup im willing to sell the home. i wouldnt have decreased the price 15% 2months ago from what it was appraised 6 months ago in the first place if i wasnt, and i wouldnt be here looking for advice either. thx for trying. im pretty sure i know the market in streator better than any realtor on here other then Beckie because shes from my area. so im going to go with what she(and a couple others) said and get another cma.
0 votes
Keith Sorem, Agent, Glendale, CA
Sun Dec 6, 2009
Screenhome
A couple of questions for you:
1. Why are you moving? Do you HAVE to move, or just would like to move?
2. Can't afford to rent it out...really. Talk with your CPA., There are tax consequences, both while it is rented and when it is time to sell...
3. Pricing a home above market value is a waste of time. Interview another Realtor who can analyze your situation and provide you with options.
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Sun Dec 6, 2009
When you're putting the fork in it Rock, just know I like mine medium rare!

Night owl, I am......maybe Mrs. Rock and I should start hanging out together..........tell her to ask a question on Trulia, and I will find her :)

Enjoy this beautiful Sunday (well, it's sunny and beautiful in NJ... after last night's snow!)
Have a great day....
0 votes
Susan Jackson, Agent, Atlanta, GA
Sun Dec 6, 2009
Sounds like good advise coming from the other realtors. Aggressively pricing your home in this market is what gets properties sold. Buyers are out there looking for bargains, and price is what matters to them. Discuss this with your agent, request a new CMA. Think about what other valuable incentives you can offer to the buyers. I don't know if this will help, in this time when price matters.
0 votes
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