Showings dropping off in 2nd/3rd week. How can I improve showings in this market? (Plano: for sale, foreclosure)

[Plano_Pal]

Hi, we have listed our home for sale in Plano and I am requesting your help in determining if we are on the right track or we need to make adjustment in our asking price.

1 - House has been on the market for about couple weeks. 10 showings and an Offer ~8% less than our asking price with contigency of prior sale. So, we counter offer but could not come to an agreement...so it has expired.

2 - First week brought 7 showings and second week about 3. And this week is quite with no showings at all....

My questions/concerns are:

1 - In Plano, what would be the average number of showings/wk in spring season for a home priced in $200,000 - $225,000 range.

2 - Should I drop the price now or is it too soon? With our asking price, we are in bottom 20%(price/sqft) of the homes currently listed within two miles radius of our home.

3 - What could be the reasons that showings are dropping SO quickly?

4 - If exact same home (of course at a different street) is sold by the end of 2007. Can we use that as a comp and adjust price accordingly or used that in our offer negotiation?

5 - Can single story homes be compared with two story homes? In our neighbourhood two story homes are much cheaper than single story.

I have asked these questions to my realtor BUT would like to get your experts opinions....Thank you in advance and looking forward to your quick feedback.

[MaryS80]

The asking price is low end for Plano, which really isn't a problem. People with that budget probably don't think to look in Plano. People who are looking in Plano probably expect more.

In the current market I think it is too soon to drop the price. Homes are just going to take longer to sell. There was more in the news about the housing crisis not being over, and gas prices continue to rise.

Couldn't tell you why showings are droppping so quickly.

I"m not sure weather to use the other home a comp, even in a few months time things have changed. If you really want to sell accept a fair, profitable price.

Perhaps your realtor isn't doing enough? Is your home listed online? many home buyers today browse online. Perhaps something simple like one of those little info tubes with a flyer about the house. That way people driving by can get a little more info about the house. Maybe have an open house one weekend. Staging a home is popular right now, if you already have furniture someone could help you arrange it in an inviting way that helps buyers make sense of the space. Right now you just have to get creative, make your home stick out from the others for sale. Remember the number one thing after location is curb appeal. If you don't already plant some nice bright easy to care for flowers like geraniums.

[nsumner]

Most showings are generated within the first 2 weeks of the house being on the market. Therefore it is imperative that it is priced right and shows well from the beginning.

Have your Realtor do another market analysis and see what has sold in the immediate neighborhood (2 miles is too far) unless you are in the middle of nowhere.

What has the feedback been from the buyers and Realtors that have looked at your house? Not to your face (sorry but most of us are too polite to tell the homeowner that their house doesn't show well or stink) but we'll be very blunt with the listing agent.

Does your house have a strong presence on the internet? Showcased on Realtor.com? is it on craigslists? Postlet? You may know that over 92% of buyers start looking on the internet for their next home.

Do you have your house staged? Crucial to a successful sale.

May be have your agent show you some of the homes that are your direct competition and you can compare.

The fact that you had an offer already is a very good sign. I know that 8% below list price is not too bad these days, buyers are more picky and they really expect an excellent deal. Did they not have an offer on their house? Could you have done a kick out clause?

Yes comps have to be a maximum of 6 months old. A buyer will only pay what THEY feel is right for that house not because the same house sold for? Unless you are arguing with an appraiser to justify value.

Yes single story can be compared to 2 story. Appraisers look at the square footage.

There is no % of showings per homes in different neighborhoods... It's all about individual homes, condition and price. You are within a popular price range for Plano. The homes over 700K are the ones that linger longer.

Only your Realtor and you can decide if it's time to drop the price after you look at the market analysis.

Naima

[Plano_Pal]

Thank you Mary and Naima for professional advise.

We thought adding 'kick out' clause will make the listing appears under contract and most (of course not all) other agents will just not show the property. I hope it was not a mistake... I know buyer's house is still on sale even after a week...So obviously they did not have any offer pending.

What troubles me the most, is the way 'comps' are used in our negihbourhood. We did not have any property (single story) sold in our neightbourhood in last six months under 'normal' transaction. Only one foreclosure sold at auction/REO and using that as a comp is beyond my imagination. Those are distressed properties and sold 'as is' on auction and at 15-20% (or more) discount at REO.

In our 1/2 mile radius no single story home is on sale. And 1 mile radius shows 5 and mine our is the lowest....

[nsumner]

It sounds like you're priced appropriately if you're the lowest psf. This weekend will probably be slow because it's mother's day and family time, unless he wants to buy her a house for Mother's Day ;-)

Naima

[Plano_Pal]

As a seller, I ask buyers to 'just' show up regardless of the reasons......;-).

I'm lowest on psf in 1/2 mile radius (that includes other high price subdivisions). And there is no single story house on sale in our subdivision. So we are ruling for now and I hope it stays that way for a while....

However, there are 3 double stories homes that are listed about $12/sq ft lower than mine......and based upon comps, this delta has been quite consistent. Hoping for the best....

[lh_newbie]

Just asking:

$200-225K and your first offer was 8% (16-18K) under list and you are asking about lowering your price? Was the real issue for you on that offer the contingency offer? Maybe the realtors here can give some info on if this is normal or what your expectations should be in the current market.

Brian

[Big G]

I think you did the right thing not taking the offer with strings attached. Your house would die on the vine with "Contract Pending" for weeks or months.

I also think you are doing the right thing by not matching the 2-story houses in price per sq. ft.

2 years ago in Plano (right when the market started cooling off) I listed my 1-story house in a sea of 2-story houses. The 1-story floorplan was a big attraction, both to empty-nesters and folks with very young kids, and I was able to sell quickly and get a premium price on a sq.ft. basis. Have your realtor try to play up that angle - "RARE 1-story opportunity in [blank]!"

In my current neighborhood (new construction) there are a handful of 1-story houses. They are selling (well, not selling, but being offered for sale) at a price point about 20% below the 2-story houses, but with only 2/3rd of the square footage. 1-story buyers can't really expect to get the same price/sq.ft. as a 2-story buyer.

The fact that you got a semi-offer means that you are in the game and probably at the right price. I don't see any point in slashing the price now. If you wanted to blow the house out, the time to do that was at the original listing.

If you don't mind sharing, what neighborhood are you selling in?

[Plano_Pal]

Originally Posted by lh_newbie

Just asking:

$200-225K and your first offer was 8% (16-18K) under list and you are asking about lowering your price? Was the real issue for you on that offer the contingency offer? Maybe the realtors here can give some info on if this is normal or what your expectations should be in the current market.

Brian

Yes, we were quite concerned on 'contingency'. Already selling one home and just can't take another one.

In the absence of contingency, We were willing to negotiate further by providing the comps etc but contingency did not work for us.....

[Plano_Pal]

Originally Posted by Big G

I think you did the right thing not taking the offer with strings attached. Your house would die on the vine with "Contract Pending" for weeks or months.

I also think you are doing the right thing by not matching the 2-story houses in price per sq. ft.

2 years ago in Plano (right when the market started cooling off) I listed my 1-story house in a sea of 2-story houses. The 1-story floorplan was a big attraction, both to empty-nesters and folks with very young kids, and I was able to sell quickly and get a premium price on a sq.ft. basis. Have your realtor try to play up that angle - "RARE 1-story opportunity in [blank]!"

In my current neighborhood (new construction) there are a handful of 1-story houses. They are selling (well, not selling, but being offered for sale) at a price point about 20% below the 2-story houses, but with only 2/3rd of the square footage. 1-story buyers can't really expect to get the same price/sq.ft. as a 2-story buyer.

The fact that you got a semi-offer means that you are in the game and probably at the right price. I don't see any point in slashing the price now. If you wanted to blow the house out, the time to do that was at the original listing.

If you don't mind sharing, what neighborhood are you selling in?

Thank you for your comments and opinion. quite helpful to know the direct experience.

We are in NW side of Plano (sorry, can't get anymore specific).