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If comparable houses in your area are actually selling (for less), then you should probably lower your price. If comparable houses aren't selling, even for less, lowering prices in a panic, will only drive the perceived market value down further. If the latter is the case, tell your RE Agent to work harder in marketing your property -- until somebody at least makes an offer.
As it stands, prices are continuing to tumble, with no apparent, value-related reasons. Why should astute buyers 'pull the trigger' in that environment? When prices stop free-falling, buyers will start to return to the market. This is a crazy, depressed market and unless one is forced into a 'fire sale' their property at any price, just to get out; then, hanging-on for a while can only help. Prices will level out as the inventory of rock-bottom foreclosures is gradually depleted.
Finally, regardless of where you price your house, potential buyers are going to lowball you in this buyers market. So, if you do decide to drop your price, leave at least another 10%+ 'wiggle room.'
We put our home on the market in late July and will be purchasing my in-laws house -- it's bigger, same school district, great area, super cheap ...
Our home was originally listed for $215,000.00 and we got about 2-3 showings/week at that price.
In early October, we lowered the price to $210,000.00 as suggested by our real estate broker. We didn't see any more foot traffic through the home and its now been 2 weeks since we've had a viewing.
It's now one day away from November and our agent suggests we lower it again to $200,000.00.
Here's our scenerio:
Columbus, OH suburb Hilliard (desirable)
Columbus taxes - better than Hilliard's taxes by far
Hilliard school district -- highly recommended
2400 sq ft home
4 br, 2.5 bath
great lot
Cul-de-sac location
Friendly and clean neighborhood
Our home is in perfect condition -- to our knowledge there is nothing that will need repaired
The price is competitive with others in the area (except foreclosures)
Lots of foreclosures and short sales nearby
Unemployment is 10%
If we lower our price to $200,000.00, by the time all fees/expenses are paid out, we would OWE $700.00. Our new home is super cheap (family discount) and we would be able to start saving a considerable amount right away. The new home doesn't need any work except painting bedrooms for our color choice.
What would you suggest we do?
You may think your home is worth X amount of dollars, but the truth is your home is only worth what someone else will pay you for it.
So far, no one thinks it's worth $210,000.
Since you are gettnig such a great "family deal" on the new house just quit wasting your time as it will be harder to sell the closer you get to the holidays, and price it where the market is telling you it will sell.
The price is competitive with others in the area (except foreclosures)
Lots of foreclosures and short sales nearby
Your price is competitive with the other unsellables in your area. Your competition is likely the shorts and foreclosures, which seems to be what is selling in your neck of the woods, right now. And most unsold some at this time of year usually winter over. What are the consequences of wintering over?
It's not clear if buying the other place depends on getting this one sold, or not? Can you qualify for 2 mortgages?
Your best shot at getting sold is to undercut all your competition, based on very recent closed sales prices on comparable homes. This likely means repositioning under $200K and by this I mean $190k+/-. You will likely kick yourself for not doing so, next Spring.
Actually putting it at exactly $200K is even better because everything now is drop down box filters. $200K gets people looking up to $200K and people looking up from $200K. At $199,900 nobody filtering on $200K and up will see it.
I have been preaching this for years and just shake my head when nobody can see the wisdom in it. +1
We have lowered the price to $200,000 based on neighborhood sales, this thread, and discussions with our realtor. I'll keep everyone updated on how it goes.
The consensus seems to be that it's not worth $200k in the first place.
Quote:
Originally Posted by AnnabelleM
Update 11-3-10:
We have lowered the price to $200,000 based on neighborhood sales, this thread, and discussions with our realtor. I'll keep everyone updated on how it goes.
I was thinking of selling and talked to an agent and have been looking for quite awhile thank God I have been looking and my house ain't ready yet.
I learned if an agent wants you to sign a contract with a stipulation that says you have to lower the price DON"T SIGN.
The houses are selling so cheap because people are signing these contracts and they are making is sound like it a one time down grade but they will lower the price till the house sells and you signed the contract.
Some of them will lower the price twice a month instead of once a month. OMG
Don't sign one that says you have to lower your price. I talked to him but didn't understand. Now I do after looking at a website and seeing things.
This is why so many homes are being stripped you are under contract to sell your home even if it falls below what you owe on it. OMG
We are in deep DO DO folks.
I have lived in my house for 15 years and they want to give my house away. I see some people who have lived in there homes longer and they are down grading every month till the home sells.
These people are being pushed into the streets. In my case I know for a fact I would be living in the streets if that happened to me. I don't have the credit and can't get another loan like now because of my credit which means I would be living in the streets. I sure am glad I figured this one out.
Back in the good ole days the longer you stayed in your home the more equity you had in your home. Now adays equity has nothing to do with it. The good ole days the longer you stay and if you took care of your home or did upgrades the better, kind of like a retirement type of thing for folks. Now adays no retirement because you give your home away, no matter how long you stay in the home. I read a report most people stay less then 10 years in a home. So if you stay longer the more equity you build up in a home. Of course we all know when buying a home it takes many years to pay off the first 15 or 10 years is nothing but interest you don't pay on the loan per say till over 10 or more years. Now adays they want you to give you home away no matter what you put in the home or how long you have lived in it.
Don't sign a contract that locks you into lowing the price even if he/she makes it sound like a 1 or 2 time lowering. DON"T sign I repeat DON'T SIGN.
I bought over 10 years ago and interest rates were high which means I am just now getting in to the principle I don't have that much in my home. All I can do is wait it out or upgrade.
Last edited by Starlady01; 11-04-2010 at 07:01 AM..
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