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Old 07-31-2012, 07:26 AM
 
Location: So Ca
13,901 posts, read 13,565,381 times
Reputation: 11824

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Quote:
Originally Posted by CHTransplant View Post
Why would ignoring the current competition when establishing price be a good idea?
Definitely don't ignore it; it's the competition but it doesn't set the price. Comps are based on what's sold, not what's on the market. If you base your price on the latter, you can't complain when your house sits on the market. Any serious buyer knows that also.

(As an example, there's a house around the corner from ours that's been on the market for a year. A YEAR. Their price was set based on what homes were priced at a year ago, some of which didn't sell. When I went through the house several months ago and asked their realtor, she said they looked at surrounding homes on the market when they put it on.)
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Old 07-31-2012, 11:22 AM
 
19 posts, read 21,396 times
Reputation: 15
I agree about looking as the prices of homes that sold, not the ones on the market. As a buyer, I definitely pull up the sold listings and look at those. Today it's really easy for buyers to get access to a lot more information than in the past, even though I do have a buyer's agent, I do a lot of research on my own as well, since it's to my benefit to make sure I'm getting the price as low as I can.

I don't know about buyers but I also am really turned off by homes that are on the market a long time with no change in price. That just tells me the seller is not going to be reasonable about coming down to the right price. The OP asked about why someone wouldn't give a low ball offer, well, buyers like to see some movement in the price to know that the seller is motivated. It doesn't even have to be a lot, but some movement downward tells buyers you are not firmly stuck on your list price.
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Old 07-31-2012, 12:31 PM
 
Location: Barrington
41,911 posts, read 31,743,839 times
Reputation: 14087
Quote:
Originally Posted by jghorton View Post
It's obvious that this is the problem you are facing, based on your comments that you "always come-in second best'! Your realtor/s are acting like what industry refers to as "order takers"... by allowing objections to keep them from really doing their job. (Perhaps there are so many houses on the market, many RE agents start thinking that their job is to show houses rather than sell houses). You need to find a realtor who doesn't stop until they can come back to you and report, "We've got a potential sale, IF .... (whatever the buyer said)" --
Whoa.
Listing agents educate ( the sellers), market the property and negotiate ( primarily with the sellers in flat/down markets). The sales part comes into play when persuading the seller to choose and keep them as the listing agent. A lot of sellers choose the agent who best sustains the fantasy of the seller's price.

How likely would the OP hire an agent who recommended an asking price substantially lower than what they expect? This is where education comes into play and some sellers are not motivated to move or to learn how markets work. Often times, agents take unsellable listings and hope that time and the market wears the seller's down. Other times, agents confuse carrying unsold inventory with activity. They become collectors of unsellable properties.

The buyer's agent has been hired to locate/negotiate a property meeting the buyer's expectations. Buyers Agency also involves substantial education about how markets work and value. The best buyer's agents employ the concept of value engineering to determine how much value " want" holds for the buyer. The buyer's agent has zero obligation to sell a specific property to anyone.

The better buyers' agents know the local inventory upclose and personal and do not rely on internet pictures. There is nothing sweeter to a buyer's agent than a property that is poorly marketed cause no one else is looking at it.


Being a bridesmaid is the way most agents cushion the news that buyers bought something else. Who knows if one was ever really in the running? It sounds more like the OP's property has been used to " sell" another property.

This property has been exposed to the market for almost 10 months, over two years time. I don't care if there is a devil worshiping alter in the basement, the reason it has not sold is price. Price trumps condition, location and even lousy marketing.

No amount of marketing can overcome a bad price.My best guess is this pup is likely at least 15-20% off market, else someone would have made an offer. Without motivation to move everyone is spinning their wheels.
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Old 07-31-2012, 01:10 PM
 
4,627 posts, read 7,206,357 times
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More like 25-30% unfortunately.
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Old 07-31-2012, 02:08 PM
 
19 posts, read 21,396 times
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Quote:
Originally Posted by maryjo313 View Post
I don't know about buyers but I also am really turned off by homes that are on the market a long time with no change in price. That just tells me the seller is not going to be reasonable about coming down to the right price. The OP asked about why someone wouldn't give a low ball offer, well, buyers like to see some movement in the price to know that the seller is motivated. It doesn't even have to be a lot, but some movement downward tells buyers you are not firmly stuck on your list price.
Oops, sorry I must have missed in the original post that you'd lowered the price. So that's good. I do though see as well how much higher the price is than when the home was bought a few years ago, which looks out of kilter with the market. As others have pointed out, you're valuing the upgrades more than you should or how a buyer would value them. You'll get some value back on them, just not as much as you think you should.

I'm surprised your realtor has not helped in setting a better price. And as we've mentioned, the write up on the home is darn near unreadable for any but another realtor. Try to think as well what types of things your home has that others don't and include that in the writeup. For instance, looks like the yard is fenced and that's not even mentioned! Dog owners LOVE fenced yards and sites like realtor.com don't even let you search for homes that include them, so savvy realtors know to put that right up front in the description to grab our attention.
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Old 07-31-2012, 03:44 PM
 
4,627 posts, read 7,206,357 times
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Quote:
Originally Posted by maryjo313 View Post
Oops, sorry I must have missed in the original post that you'd lowered the price. So that's good. I do though see as well how much higher the price is than when the home was bought a few years ago, which looks out of kilter with the market. As others have pointed out, you're valuing the upgrades more than you should or how a buyer would value them. You'll get some value back on them, just not as much as you think you should.

I'm surprised your realtor has not helped in setting a better price. And as we've mentioned, the write up on the home is darn near unreadable for any but another realtor. Try to think as well what types of things your home has that others don't and include that in the writeup. For instance, looks like the yard is fenced and that's not even mentioned! Dog owners LOVE fenced yards and sites like realtor.com don't even let you search for homes that include them, so savvy realtors know to put that right up front in the description to grab our attention.
The OP has gotten traffic despite the writeup, pictures and listing price. What she has NOT gotten is an offer and closing.

Every house will sell.........at the right price for the house.

We have an older home with an akward floor plan, small kitchen and no privacy in the backyard, competing with houses which have open floor plans, larger kitchens, larger rooms all round and private backyards. The sold comps which have all the desirable traits of other homes currently for sale in the market, have sold for considerably LOWER than the OP wishes to price her home.

Anyone who bought during the bubble is now having to face the reality of today's market. You either face the market head on and price accordingly to sell or you stay put.
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Old 07-31-2012, 04:10 PM
 
19 posts, read 21,396 times
Reputation: 15
Quote:
Originally Posted by ocngypz View Post
The OP has gotten traffic despite the writeup, pictures and listing price. What she has NOT gotten is an offer and closing.

Every house will sell.........at the right price for the house

Oh I totally agree. Just trying to point out other things that assuming they adjust the price, will help to get the right buyer in the door. It only takes finding that right one person that falls in love with your home.

I also see a lot of listings put large upgrades right up front as that *is* a plus for buyers: "$60K in upgrades!" rather than trying to pack the entire list of what they are into the available space. Things like the age of the AC really don't need to be taking up valuable room, that stuff is not an attention grabber and easy to find out from the listing info.

I did have the same reaction to the paid HOA dues as well, that does kind of scream out "High HOA dues!" rather than being a positive.
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Old 07-31-2012, 07:50 PM
 
47 posts, read 102,147 times
Reputation: 29
Because short sales and new builds are the vast majority of comps in my neighborhood, I had to lower the price of my 7 year old home by 8%! I really felt my house was starting to get lost in the shuffle of the "approved" short sales. Rather than focus on what I am losing (a substantial profit), I am trying to stay content with having my freedom to move on (and a teeny-tiny profit). I could have countered to be closer to my number, but I just want this to be over already. Let's not forget, peace of mind is priceless!
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Old 08-01-2012, 10:28 AM
 
4,627 posts, read 7,206,357 times
Reputation: 4735
Quote:
Originally Posted by TiJa View Post
Because short sales and new builds are the vast majority of comps in my neighborhood, I had to lower the price of my 7 year old home by 8%! I really felt my house was starting to get lost in the shuffle of the "approved" short sales. Rather than focus on what I am losing (a substantial profit), I am trying to stay content with having my freedom to move on (and a teeny-tiny profit). I could have countered to be closer to my number, but I just want this to be over already. Let's not forget, peace of mind is priceless!
Tough position to be in. Your lucky it was only 8%!! I've seen some areas where the drop is closer to 40%!

Love Peace of Mind and moving forward!!!
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Old 08-01-2012, 12:28 PM
 
47 posts, read 102,147 times
Reputation: 29
Quote:
Originally Posted by ocngypz View Post
Tough position to be in. Your lucky it was only 8%!! I've seen some areas where the drop is closer to 40%!

Love Peace of Mind and moving forward!!!
I have only been in this house for 3 years, so I am still able to sell it for more than I paid a few years ago, so (even though I want to) I know I can't complain.
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