You pose a very interesting question. Recently, while doing a history search on another home, I discovered that it was on the market for 205 days, taken off the market for a period of time, re-listed with another broker, and has now been on the market an additional 460 days. It has been "refreshed" with newer MLS numbers and the price has been adjusted several times over the past two and half years. As you are hearing from others, the history will follow your listing for years. The buyers are very knowledgeable today. There are many sources for them to do their homework and to see your listing history.
Keep in mind, there are several parties involved in the selling and buying of a home - each with an area of control. As a seller, you have complete control over three things: the price you are asking, the terms you are offering, and the condition of the property. The listing broker has control over the marketing to expose it to the greatest number of buyers and the negotiations of the contract. The buyers have complete control over their choice to buy your home based on the price, terms, and condition you are offering. The buyers will expect two of the three things you control to be outstanding.
A buyer may be willing to pay well over market value If your home is in superb condition and you are offering unbelievable terms (for example: owner carry financing with little or no money down at below market interest rates, no prepayment penalty, and allowing a subsequent buyer to assume the loan with no qualifying). Another buyer may be willing to buy a home in very poor condition if the price and terms justify the purchase. Most buyers are looking for a nice home at or slightly below market value in very good condition.
In order to sell a home in today's market, it is imperative that you have at least two strong motivators for the buyer. It is your choice, as a seller, which two things they are going to be. If you are unable to offer outstanding terms, then the two things left are the price and the condition.
You did not say what you intended to improve, how you were going to adjust your price, or your plans for the listing. Have you received the advice of the listing broker and a home stager and/or decorator about the things that will make your home more saleable? Sometimes a seller will do or spend money on things that will have no effect on the sale or value while "little or no cost" improvements could make all the difference in the world. It pays to have a neutral opinion from an expert. What is the current market in your neighborhood? Have you received showings? What has been the feedback? If you are getting negative feedback on things you can correct, then please do so as soon as possible. If you cannot correct them, then find ways to compensate for them. A home that is not selling is being rejected by the market.
You have received very wise advice from others on this panel. In my opinion, it would not be advisable to take your home off the market at this time. September and October are still prime selling times. Many sellers mistakenly take their homes off the market during the holidays or wait for spring when the flowers are in bloom. Keeping your home on the market will give you an advantage. You will be attracting the cream-of-the-buyer-crop during a time of less competition from other sellers. The seriously motivated buyers will continue to shop regardless of the season or the holiday. Buyers who are just thinking about buying or "kicking tires" may decide to wait until after the holidays. That is OK. They are not serious buyers at this time.
You indicate that you are both a buyer and a seller. You may want to consider making a few concessions on the price of the home you are selling in order to get the home of your choice before the new home price and/or the interest rates go up.
I do not know your price range, but let's use this as an example - (after your down payment)
$400,000 loan for 30 years at 4.5% is approximately $2,027 per month principal and interest.
Total interest over the life of the loan is $329,626
$400,000 loan for 30 years at 5.5% is approximately $2,271 per month principal and interest
Total interest over the life of the loan is $417,616
This is an increase of $244 per month resulting in an additional $87,990 in interest over 30 years
Let's assume you do not want or cannot pay the higher monthly payment
$356,950 loan for 30 years at 5.5% is approximately $2,027 per month principal and interest
You have lost over $43,000 in buying power for the same payment
Gee, I guess there is a lot more to consider that a few repairs and a price adjustment. I wish you the very best for a speedy sale of your home and the purchase of your dream home.
Shirley Wilcoxon 303-420-8900
P.S. According to MLS, 142 homes have sold in the 80246 zip code in the past three years (40-51-51). Prices declined 13.2% two years ago and 8.3% the past twelve