U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > New Jersey
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-31-2007, 01:39 PM
 
Location: NJ
2,212 posts, read 6,172,653 times
Reputation: 2165

Advertisements

Just a last thought - if you do change realtors, make sure you find one who weathered the last downturn and has experience in a slow market. Lots out there got used to easy street and are over confidant of their abilities. You need a real shark.
Reply With Quote Quick reply to this message

 
Old 08-31-2007, 02:36 PM
 
5 posts, read 13,265 times
Reputation: 10
Default some advice on how to sell

- first, you need to become a realist. realize how bad the market is. realize that all homebuyers from here on out need to put down 10-20%. Also, realize that this country does a terrible job of saving. If you drop your price to 275k, do you realize that still means the buyer needs $27,500 as a downpayment?

That is a lot of cash to have lying around. And that's just 10% - assuming their credit is great.

- You may not want to hear this, but i would try a drastic move - I would lower the price $50,000 from whatever you have it at now. Before you laugh, consider this: foreclosures are coming. Please look at this chart:
http://njrereport.com/images/armresets.GIF
You will note that this fall, many people who got ARM loans will see their mortgages skyrocket as the ARM loans reset. So there will be many, many more houses on the market this winter.

- If you lower the price dramatically now, someone is more likely to feel like they're getting a deal and jump at it. If you keep lowering it by 5k, nobody will bite. Buyers are savvy these days. They will see how long it has been on the market and steer clear because anything that has been on the market for months and months is there for a reason (at least that's what buyers think).

Even if you have to suffer a small loss on the house, at least you will be rid of the stressful burden of owning a home you cannot move. It will make for a long winter if you don't sell now. Oh, and PS - the summer buying season ends ... this weekend. Very few people buy after Labor Day because they hate to pull their kids out of school mid-year.

Just some helpful advice
Reply With Quote Quick reply to this message
 
Old 08-31-2007, 02:57 PM
 
Location: NJ
12,284 posts, read 30,935,086 times
Reputation: 5190
Quote:
Originally Posted by HappyRenterfornow View Post
- first, you need to become a realist. realize how bad the market is. realize that all homebuyers from here on out need to put down 10-20%. Also, realize that this country does a terrible job of saving. If you drop your price to 275k, do you realize that still means the buyer needs $27,500 as a downpayment?

That is a lot of cash to have lying around. And that's just 10% - assuming their credit is great.

- You may not want to hear this, but i would try a drastic move - I would lower the price $50,000 from whatever you have it at now. Before you laugh, consider this: foreclosures are coming. Please look at this chart:
http://njrereport.com/images/armresets.GIF
You will note that this fall, many people who got ARM loans will see their mortgages skyrocket as the ARM loans reset. So there will be many, many more houses on the market this winter.

- If you lower the price dramatically now, someone is more likely to feel like they're getting a deal and jump at it. If you keep lowering it by 5k, nobody will bite. Buyers are savvy these days. They will see how long it has been on the market and steer clear because anything that has been on the market for months and months is there for a reason (at least that's what buyers think).

Even if you have to suffer a small loss on the house, at least you will be rid of the stressful burden of owning a home you cannot move. It will make for a long winter if you don't sell now. Oh, and PS - the summer buying season ends ... this weekend. Very few people buy after Labor Day because they hate to pull their kids out of school mid-year.

Just some helpful advice
I totally agree. I posted not too long ago if I were going to list my house today, I'd list for $50K below the closest competitor in my neighborhood, which is $100K less than the house next door sold for 1 year ago. I feel for people who will have negative equity, but you've got to outweigh the cost of hanging onto a property you need to get rid of, paying mortgage and taxes, and realizing when it does finally sell, you'll probably have negative equity anyway.

There's probably a decent chance by drastically reducing the price you'll find the property in a bidding war.
Reply With Quote Quick reply to this message
 
Old 08-31-2007, 03:08 PM
 
5 posts, read 13,265 times
Reputation: 10
not to mention that as things get increasingly worse in the coming months - ask your realtor just how grim sales are in the Fall/Winter - you'll have to lower your price anyway. If you lower by 5-10k a month, and you don't sell for six months, that's the same as lowering the price 50k TODAY and trying to sell it.

A friend relayed this story to me recently: house for sale for 550k. 6 months ago, friend lowballed 499k. Seller laughed in his face. Well six months came and went, seller had TWO buyers fail at the financing stage, and now the seller CAME BACK to my friend and said, 'hey, we'd like to take you up on the 499k offer.' Well you know my friend laughed and said, 'it was worth 499k six months ago ... i'll let you know when im ready to make a new offer.' Six months later and there are plenty of houses on the market ... my friend is thinking of coming at 450k, but he's worried that in a year's time, the house could only be worth 400k. Yes, things could get that grim. (If prices can rise at 10k a month, why can't they fall 10k a month?)

People need to check their greed at the door.

One last point: your realtor at first man scoff at this idea. The reason is because they are losing a cut of the sale (obviously). But This is probably your best strategy if you want to sell now.
Reply With Quote Quick reply to this message
 
Old 08-31-2007, 03:17 PM
 
94 posts, read 307,371 times
Reputation: 23
I origianally posted this awhile ago when we were first on the market, adn we have drastically reduced the price. I am not stupid i know how much worse it is getting every day & it stinks for us. Maybe i mentioned before we bought high just a few years ago. I have no greed to check at the door either. But i agree with what you are saying I know it is going to get worse and I have heard okay things about the fall market (my house is not one that a big family would probably by anyway). But the winter will be the pits and if we do not sell before then it will be rough.
Thanks for the advice.
Reply With Quote Quick reply to this message
 
Old 08-31-2007, 05:05 PM
 
3 posts, read 6,569 times
Reputation: 10
I heard about this thread over at NJ Real Estate Report. You're in a tough place. The advice to bomb your price is spot on. You cannot drop too low; even if you do, you'll trigger a bidding war, and the opposing parties will bid your house up to market value (actually, such an emotional confrontation of buyers will often spur one of them to pay a premium to what he might've paid coming in as the sole bidder).

Forget the open houses, print media, flyers and all the other junk. Nationally, less than 2% of all open houses result in a sale of that house, and print media is useless in selling homes. That's why Google is over $500/share and Gannett, NY Times, Tribune, McClatchy et al are either trading at 52-week lows or being carved up and sold off in pieces.

Being at Realtor.com is not enough. Having a "Showcase" listing at Realtor.com is barely adequate. What you need is an agent who will give you "Featured Home" placement in your town's zip code at Realtor.com. That way, you're getting the top 1% of hits at the site where 80% of all real estate buyers spend over 75% of their time. You also MUST have multiple photos and a Virtual Tour attached to your listing, as they generate extra pageviews. If you find an agent that will do this- and this alone- you can be guaranteed that you've reached the biggest possible buyer pool.

Starting next week, assume that your home will begin losing value at the pace of 1.5% to 2% per month. There will be no Fall market; when Winter comes, your only choice should be what grade plywood to use in boarding up your house. I'd suggest top grade, because you won't be removing it in '08. Also, if you go ahead and move, you need to budget around $1,000/month for vacant home insurance and a few hundred bucks to winterize your house.

I grew up in real estate and currently own a real estate company. I've lived thru two full-out RE collapses in my life...and this one is going to dwarf the first two in magnitude.

Pick your poison: take your hit now and get out, or linger on the market and have your current home take you completely under.

I've seen you mention that you have "hope" for things to turn out well here. What you need is not hope, it is a strategy...and hope is not a strategy.
Reply With Quote Quick reply to this message
 
Old 08-31-2007, 07:17 PM
 
94 posts, read 307,371 times
Reputation: 23
Heard about this on another web site? Really? Where exactly?
Reply With Quote Quick reply to this message
 
Old 08-31-2007, 08:36 PM
 
3 posts, read 6,569 times
Reputation: 10
New Jersey Real Estate Report. Figure that every hard-core bear who posts there is a proxy for about 20,000 like-minded NJ buyers, and you'll have a pretty good feel for the mindset of your potential buyer.

It's a terrific blog, but there are a handful of chuckleheads there who live for stories like yours.
Reply With Quote Quick reply to this message
 
Old 10-23-2007, 08:29 AM
 
31 posts, read 99,919 times
Reputation: 22
Quote:
Originally Posted by Shanlynn1012 View Post
Please help!!! Trying to sell our home in Little Egg Harbor, HAVE to sell our home actually. It has been up for about a month with no calls!!!! We lowered our price 10k, held one open house. Please if any one has any advice to offer on what we can do or what my realtor can do, let me know. I beleive we are really fair in price at 289K 3 bedrooms 2 baths, remodeled pretty much everwhere, new deck & landscaping. Only 12 yrs old in a area called Osborne Island near all waterfront homes & bay.
PLEASE HELP
Thanks
Shanalynn
I'm not too familiar with Egg Harbor, but I know I can buy a brand new , 4br/2ba house down there, for about $385k ,right now..
the builders who put up the new developments are selling everything off at a record pace. You'd probably have to lower your price quite a bit, to get anyone to bite on it..think about it, does the buyer want a refurbished older home for $289k, or a brand new 3br for $320k? I'd go for the new home, every time..
you might want to hold onto that home..With all the new planning and building going on in AC at the moment, the value of houses should explode in that area in another 5-10 years..Wynn + MGM are planning major hotel/casino resorts in AC, and more investment is sure to come. With that, there should be a boom in employment numbers in the area, and all of those workers need to live somewhere!
Reply With Quote Quick reply to this message
 
Old 10-23-2007, 05:07 PM
 
Location: Nashville, TN
2,866 posts, read 8,279,741 times
Reputation: 666
Quote:
Originally Posted by tanner9919 View Post
Shanalynn
I'm not too familiar with Egg Harbor, but I know I can buy a brand new , 4br/2ba house down there, for about $385k ,right now..
the builders who put up the new developments are selling everything off at a record pace. You'd probably have to lower your price quite a bit, to get anyone to bite on it..think about it, does the buyer want a refurbished older home for $289k, or a brand new 3br for $320k? I'd go for the new home, every time..
you might want to hold onto that home..With all the new planning and building going on in AC at the moment, the value of houses should explode in that area in another 5-10 years..Wynn + MGM are planning major hotel/casino resorts in AC, and more investment is sure to come. With that, there should be a boom in employment numbers in the area, and all of those workers need to live somewhere!
What a lot of newer Buyers do not know is that there are so many extras involved in a new home. I passed up two spec homes here because the house I bought(5 years old) had so many expensive extras that the new houses did not. With a new house they say they give you a Lawn. My first house which was new, all the seed blew away. Landscaping, was a joke, I pulled it out. No Blinds, No Window Treatments. It came with nothing.
Needless to say the 3 houses I bought after that one were all resales.
I believe the house mentioned is in one of the nicest areas of Little Egg Harbor.
Diane G
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:



Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > New Jersey
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top