What is the "normal" time period to make a price reduction on a home for sale?

Asked by K&c Ruggiero, 45040 Mon Apr 14, 2008

My condo has been listed in MLS for almost 30 days. I've had tons of traffic and my flyers seem to be disappearing daily. Feedback received is that our condo is beautiful, looks brand new, shows like a model, but buyers are putting bids in on cheaper condos.
Condos in my neighborhood are going from $140k - $250k. We are listed at $156k.
We are FSBO agent assisted, offering 3% buyer agent commission, so we are a bit flexible with the price, we just need someone to put the offer in to negotiate.

Any feedback?

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Tracy Johns’ answer
Tracy Johns, Agent, Cincinnati, OH
Thu May 1, 2008
The fsbo with agent assistance doesn't help you, to be brutally honest. But, if your showing traffic has been good, as you say, then it could be the location, the lot, better priced competition . . . but showing agents may not give you the feedback you really need-who wants to be rude to a homeowner right to his face? If they're not making offers---you have to reduce the price. Apparently the buyers are out there which is great to know! In this price point you can't just reduce it by a few thousand dollars and induce buyers to write offers. From what I can tell by the photo of your place it looks like one of the Drees built condos-- a reputable builder in the area. Go with $150,000 and good luck!
1 vote
Jerry Wood, Agent, Denver, CO
Wed Apr 16, 2008
1 vote
Holly Futrell, , Chesterton, IN
Tue Apr 15, 2008
Homes usually sell for the most amount of money the first few weeks on the market. I encourage my sellers to lower their prices within the first 3 weeks of list. The feedback you are recieving is that your condo is beautiful, however, the buyers don't like the price. Remember, real estate is a commodity and as a commodity price is market driven. The only difference between real estate and stocks, bonds etc... is real estate buyers have emotion involved in their purchase. As a seller your goal is to play on that emotion by making your home seem like a "great deal".
1 vote
David M. Chi…, Agent, Uniontown, OH
Mon Apr 14, 2008
If your facts are correct, it looks like you are priced just right for offers. A good rule of thumb is, that if you are getting showings and traffic, leave the price alone for a while. 30 days is a good time to take a good look at your pricing, market strategy and what has happened in your vicinity the last month. Your agent should re-visit all those and advise you on your next move. Good luck.
Web Reference:  http://www.liveinakron.com
1 vote
Elizabeth Ti…, Agent, Detroit, MI
Mon Apr 14, 2008
How well do you really know you are priced? Did you have an appraisal that got you to the price you have it listed for? Do you know what other properties in the area have really sold for and are pending close REALLY? I would go to one of the prospective buyers that did look at it and get more of a strong feedback. Find out if they bought in the neighborhood really for less. By cheaper what do you mean? These are all questions you have to ask yourself and find out before you make any decisions to change price. How motivated are you to sell? If it is price would you be prepared to lower to what others in the area coparable have sold for?
Web Reference:  http://www.lizindetroit.com
1 vote
Lisa Sparks, , Riverview, FL
Fri Jul 18, 2008
I'd suggest you become very familiar with your competition. In this market, you need to be aggressive. If you’re getting showings, positive feedback, and no offers, it’s probably time to review your price and make a necessary adjustment. Also, what is your time frame for moving? If you want to move soon, then you might want to have your price adjusted. There is no magic number for the ‘right’ time to reduce your price. Every situation is different. Based on the information you’ve provided, a price reduction might be your best solution.
0 votes
Julie Beall, Agent, Springboro, OH
Tue Apr 29, 2008
I like to visit price every 21 days or every 8 showings. This is not a market to react slow. The are not many buyers shopping so you have to be aggressive. If you have been shown 8 times and no offers then you have been buyer rejected 8 times. I f you have had second showings with the the same buyer then you are getting closer to price. If no one comes back for a second showing ...lower your price. Hope this helps.
Web Reference:  http://www.juliebeall.com
0 votes
Brian L. A.…, Agent, Colorado Springs, CO
Wed Apr 16, 2008
All real estate is local and can be so local as to differ from neighborhood to neighborhood, so there is no "Normal" unless you are speakingwith a specialist in your market.

The general rule of thumb is if you haven't received significant showings, and what is "significant" also varies by your market area, within a 30 day time period, then something isn't right about your listing. That something can be any number of things (price, the way it's being marketed, etc.) There is an old saying in real estate "Price Fixes Everything"...so it just depends on how much equity you want to give up.

Unfortunately as a FSBO you are already placing yourself at a significant marketing disadvantage since according to a 2006 survey of buyers and sellers properties sold by a Realtor sold 16% HIGHER than properties sold FSBO. Since most markets average 5% to 7% for listing fees, a FSBO is leaving 9% to 11% of their equity on the table.

You would be best served to find a Realtor who is a specialist in your market...preferably a Certified Residential Specialist (CRS). The CRS, also known as the PhD of real estate, is the highest designation awarded to professional residential Realtors and though less than 4% of the over 1.3 million Realtors qualify to receive the CRS, they do more than 25% of all the residential sales in the country each year.
0 votes
June Lizotte,…, , Portland, OR
Wed Apr 16, 2008
Your issue may or may not be price so much if what you're saying about your property is accurate (great feedback on appeal, etc). First regarding price: if others are listed as you say, that range represents an enormous size differential- so you need to compare apples to apples, which you are not doing in your description. Also, if you are priced at 156K and there are other listed properties at that price you should reduce your price and be the best price in the market area, ESPECIALLY since you are unrepresented. The issue may be that you are representing yourself. Just because your home is in the multiple listings doesn't mean you won't get showings, but you may not get offers because any reasonable Buyer's agent will inform their client of the numerous issues that could be involved in being in a transaction with a condo owner where there is no seller representation and the Buyer's agent would be unwise to reduce his fiduciary responsibilities to his current client to take on both sides of a condo deal. It sounds like you paid a fee to be in the MLS and from there you have to do your own contract; if that's the case you would be much better off listing your property and having adequate professional assistance. Unrepresented sellers (FSBO) is not a best marketing practice in this type of market. solution: Contact me and I'll refer a qualified agent to you- you need one who will get the job done.
Web Reference:  http://www.junelizotte.com
0 votes
Don Bush Team, , Columbus, OH
Tue Apr 15, 2008
It must be overpriced, but you would not know without Realtor feedback. It seems that the ones that stay on the market too long develope a "stigma" perhaps. Selling without a Realtor is not wise in a difficult market.
0 votes
Keith Sorem, Agent, Glendale, CA
Mon Apr 14, 2008
K & C
Sorry, but I think you are kidding yourselves. You are not agent assisted, otherwise you would know that if you are receiving showings and no offers that you would need to reduce your price.
With all due respect, what makes you think that posting a question like yours in Trulia is the same as someone that
1. Knows the local market
2. Knows your property
3. Knows your situation

IMHO it would be invaluable for you to have someone with the above knowledge...but you opted to take another route.
0 votes
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