How Much to Reduce the Price on House for Sale by Owner?

[KonaKat]

In a buyer's market or a sluggish market, you don't want a "limited services" type of listing, you want to provide enough commission incentive that will make the agents willing to show your home. My opinion is, that was your first mistake, in listing the house with basically no bang for your buck.

In a hot hot seller's market, one is much more likely to be successful with a FSBO or limited services listing; I did that myself in Las Vegas before I moved to Hawaii and became a realtor. 2 weeks in the newspaper and boom - had a very good offer. Buyer nearly drove me to drink, but it closed on time.

An aged, overpriced listing to me, a realtor, means either the owner really doesn't need to sell, or we have an owner that is difficult if not impossible to negotiate with. Neither of those ideas makes me want to show that house to a client unless they really want to see it.

What is not finished on the house? What is involved in getting this accomplished? Work, materials, more permits? This can be a huge negative.

I would interview some agents, some of the same ones as before too, and get a full service listing agreement. That, along with an aggressively priced property, should get you more action.

All that said, it is a difficult market in many parts of the country and sometimes no matter what you do, it just doesn't move. I have a fantastic, beautiful home in a small gated neighborhood that shows like something out of a movie, dropped price a couple of times - still no offers. We are all shaking our heads over it.

Best wishes.

[aneftp]

Originally Posted by DevionisDream

you need to make sure your home is posted on zillow.com . They have a huge following and get a lot of traffic. When I see a home that's FSBO I usually stray away because I know that it is usually overpriced or the pics don't make me want to come see it.. very low quality. However, that's me, and you should do what makes you feel comfortable.. make sure your home is on zillow though.

Weird. Most for sale by owners I have seen (in Central Florida) in the 400-600k range are very attractively priced. You as the buyer are getting close to a 3-4% discount based on the current comps. Most of the ones I have seen factor in this type of discount. Maybe these are savvy homeowners who know the market?

The ironic thing I see is realtors listing their own homes in my neighborhood. Obviously these realtors have access to the MLS. You would think they would be realistic. But I have seen that they listed their homes for close to $170/square foot compared to the current comps that dictate selling around $145/square foot.

Maybe these realtors are just testing the market and aren't being serious. Unless they get someone who absolutely loves their home. These "MLS" listed homes by realtors themselves are not going to move at these prices. And their homes are almost the same upgrades as other for sale by owners (pavers, granite, plantation shutters, wood floors).

[CourageMom]

Originally Posted by Brandon Hoffman

Zillow? Really...this is pretty worthless advice. I'm sorry, that was probably rude or too blunt...but it's the truth.

Actually Brandon, regular people do look on Zillow, a lot, often times just to look for the annual taxes
on a property, which is rare to find on the others.. and although not carved in stone.. usually I do find
(a majority of the time) the annual tax mystery solved by a trip to Zillowland.

[DevionisDream]

Originally Posted by aneftp

Weird. Most for sale by owners I have seen (in Central Florida) in the 400-600k range are very attractively priced. You as the buyer are getting close to a 3-4% discount based on the current comps. Most of the ones I have seen factor in this type of discount. Maybe these are savvy homeowners who know the market?

The ironic thing I see is realtors listing their own homes in my neighborhood. Obviously these realtors have access to the MLS. You would think they would be realistic. But I have seen that they listed their homes for close to $170/square foot compared to the current comps that dictate selling around $145/square foot.

Maybe these realtors are just testing the market and aren't being serious. Unless they get someone who absolutely loves their home. These "MLS" listed homes by realtors themselves are not going to move at these prices. And their homes are almost the same upgrades as other for sale by owners (pavers, granite, plantation shutters, wood floors).

That may be the case in your market, but as far as where I'm looking (and I've studied this even before considering buying as I love houses like some women love shoes) in California (SF Bay Area) and Eagle/Boise ID. That is the case. FSBO overprice their houses because they have a connection to them and think their house is worth more than it is.

Example. I seen a house FSBO in Eagle, ID a few months back. The house was listed at around 895k, I looked around and the comp homes were around 695k to 700k. The home was 195k overpriced. I received an email a few weeks back saying a new REO home was on the market. It was that same home for 629k.

Maybe if they would've priced it right they could have sold it and saved themselves from a foreclosure.