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Old 07-29-2012, 10:33 AM
 
326 posts, read 654,991 times
Reputation: 443

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Quote:
Originally Posted by ACWhite View Post
OP, my sympathies in a rough market, but I think you are in an excellent position since you don't HAVE to move, and if you do move, you would be moving to another house in the same vicinity, so the price drops that hurt you on the selling end work to your greater advantage on the buying end, because you want to bigger, nicer house, which will have the same % price drop, meaning more $$$ saved on the higher-priced, buying end.

If I were you, I would not screw around with making changes to the house at this point in the hope that buyers will like them and compensate you for them. It's a risk, esp. given that you may have "over-improved" already. I would decide to either:
(a) stay put and not incur the loss or expense of moving right now or
(b) drop the price significantly (to the point where your house now outshines the competition at the same price rather than causes buyers to nit-pick), sell the house quickly, and enjoy the new home you buy at a lower price than you would have gotten it several years ago.

Tell the hubby you have this decision scoped out and if he knows what's good for him, he'll do what you want :-)!
I totally agree. This market is rough! My house was on the market far longer than I expected. When I finally got offers I wanted to dismiss them as lowballs. But the offers were all within 10K of each other so were they really lowballs or the market price? Anyway I worked out a deal and glad its over and I can move on.

I know how you feel OP. I too felt the buyers were not seeing the true value of my house. But believing it, saying it, or writing it on the listing will not make them pay for it.
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Old 07-29-2012, 01:36 PM
 
4,631 posts, read 7,231,614 times
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A house is only worth what someone else is willing to pay for it.

Doesn't matter if it is a starter home or a 35,000 sq ft mansion.
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Old 07-29-2012, 04:23 PM
 
Location: So Ca
14,014 posts, read 13,629,187 times
Reputation: 11932
Quote:
Originally Posted by ocngypz View Post
Look at what HAS sold, not that which is for sale.
Best advice on this thread. What's on the market is your competition, what's sold should set your price.
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Old 07-30-2012, 01:09 PM
 
47 posts, read 102,300 times
Reputation: 29
OP I feel your pain as well. I am on my 4th contract since my house went on the market in May. I have had to drastically reduce my price and live with the fact that 3 other buyers were willing to pay what I was asking or above! A bitter pill to swallow for sure. But in the end, I didn't want to carry this house any longer and if this deal falls through I will have to rent it, which is something I am not anxious to do at this time in my life.

My strategy was to undercut the competition I had for my neighborhood on the MLS. My competition was short sales, so I had to price the house as low as I possibly could without owing anything. I got an offer at the very next showing! I know my house is worth significantly more, but I want out, so I have to take the out...What is your absolute bottom price? Don't put anymore improvements into the house, just drop the price ASAP!
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Old 07-30-2012, 08:54 PM
 
19 posts, read 21,428 times
Reputation: 15
Some thoughts from someone that is currently looking to buy.

Good photos really can matter. You made a comment early on about a buyer not liking the layout as if that was ridiculous. Well, some of us DO have furniture needs that have specific requirements. I often walk into a home and know in less than a minute that it won't work because I have an 11-foot entertainment center and 80%+ homes in this area have fireplaces or layouts that don't give me the wall space I need. I also really don't like small showers (frankly I would leave the tub out of a MBath myself just to have room for a really deluxe shower....I use a tub maybe a couple times a year but shower every day!) and that's something very often not even shown in photos. I work from home and have a large desk that needs a specific room layout as well. I often won't even go to a house if I can't make a reasonable determination from online photos that it is likely to meet my needs, and I would expect this is true for many buyers. So take plenty of wide angle photos, get a photographer with the right equipment if you don't have a realtor with it, and try to cover as much of the home as possible.

At the same time photos CAN lie. You mention buyers commenting on the slope of the yard. Well, I've seen pictures that made the yard look MUCH more sloped than it turned out to be. And vice versa. So I personally would likely still take a look at a home that I otherwise think I might like if I'm not sure how sloped it is (I do use Google Street View to double check but not all buyers are as thorough as I am!) If I really liked the inside, I might over look the slope. But all things being equal it could very well be an issue. And when surveyed, buyers give the first thing to pop in their heads. It usually is a wide range of things that all add up together and mean, the things I liked didn't outweigh the things I don't. So don't get overly hung up on the one or two things that they DO decide to mention as negatives. It just as often means the positives of the home are just not ENOUGH of a positive versus that something is wrong.

It definitely can be harder to sell an older home, personally I don't even look much at homes over 10-15 years for the very reasons mentioned, they are going to need a lot more maintenance typically in the near term than newer homes. You can't be including things like replacing AC units in your price, regardless of what neighboring homes may or may not have replaced. Because you're still competing with newer homes as well. There's large, very updated homes on the market right now for amazing prices, you can't just ignore that fact and look just at the couple of homes around you that someone was lucky enough to find a buyer for.

I do think from your comments you aren't quite being seeing the same things that typical buyers are wanting. Just commenting about how your neighbors home has a fantastic kitchen but they didn't upgrade a couple bathrooms like you did shows a bit of having blinders on to your own likes and dislikes. I don't know that there are many things that matter as much to buyers as kitchens, particularly in this day and age of a kitchen gadget for everything and cooking shows all the rage. For me, it's probably the number one thing I look at. Bathrooms...meh. Of course they matter somewhat too. But given a choice between a nice big kitchen that has room for all my equipment, pots and pans, etc. it's a no-brainer. I can always remodel a bathroom...it's MUCH harder to make a kitchen bigger. Keep in mind as well that families with kids need LOTS of additional kitchen space. So smaller kitchens can definitely limit the buyers that will be interested more than many things will.

It really does come down to looking at whether it's more important for you to sell the home quicker, or if you want to wait and hope for the right buyer. But the downside of course is the longer it stays on the market, the more buyers will tend to stay away, or wait until they see you lower the price. I recently looked at a home that I kind of liked and might have considered buying...but had been on the market for an entire year and the only price change was a slight move UP. That told me all I needed to know about whether the sellers were even worth trying to work with on the price.
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Old 07-30-2012, 09:18 PM
 
19 posts, read 21,428 times
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I was curious to see for myself and pulled up the listing. Agree with a lot of the comments, the carpet in the dining area would be a big negative for me, and yeah, the kitchen is unfortunately very small to compare with other homes in that price range. Most are easily going to be twice that size. The property description on sites like realtor.com is quite terrible, definitely get that updated.

There's a home comparable to yours right across Fayetteville RD, MLS 1846230, which has a lot of the things we've talked about buyers liking...hardwoods, large kitchen, open spaces, good landscaping, etc. That's what you are contending with, newer homes with more modern amenities right across the street. So you have to find another way to make your home MORE attractive to them that that, and not sure there's much more than lower price that you could offer.
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Old 07-31-2012, 07:20 AM
 
9,198 posts, read 21,204,906 times
Reputation: 8516
Quote:
Originally Posted by ocngypz View Post
Look at what HAS sold, not that which is for sale.
Quote:
Originally Posted by CA4Now View Post
Best advice on this thread. What's on the market is your competition, what's sold should set your price.
Huh? Why would ignoring the current competition when establishing price be a good idea? I understand that past sales should be an indication of what current prices should be, but so should current market conditions and competition. You can't just use past info and ignore everything else.
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Old 07-31-2012, 07:47 AM
 
Location: Cary, NC
31,676 posts, read 55,479,016 times
Reputation: 30235
Quote:
Originally Posted by CHTransplant View Post
Huh? Why would ignoring the current competition when establishing price be a good idea? I understand that past sales should be an indication of what current prices should be, but so should current market conditions and competition. You can't just use past info and ignore everything else.
Well, you can ignore most everything else, most particularly when considering a thread wherein the OP cannot get her house sold for an extended period.
It is OK to fine-tune price to the competition, but that price has to be well supported by closed comps.

It is so very common to hear a prospective home seller compare their gorgeous love shack to the one down the street that has been on the market for 400 days without a price reduction: "If that 3 bedroom place is worth $400000, my 4 bedroom place has to sell for $450,000."

If comps say a house is likely to sell for $400,000 and vastly similar properties are Active and listed at $400,000, it is smart to be priced less than the competition.
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Old 07-31-2012, 08:07 AM
 
4,631 posts, read 7,231,614 times
Reputation: 4740
Unfortunately, for the OP they bought when the market was high.

Sold comps have sold for much less than her listed price. One house sold for more, but was a significantly larger home so I do not include it as a comp.

Compared to sold comps and current competitive homes, the home is overpriced and unfortunately dated compared to both sold comps and current listings.

There really isn't much the OP can do.. except reposition the marketing of the home and lower the price.

Or stay put and remodel.
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Old 07-31-2012, 08:17 AM
 
2,624 posts, read 4,122,698 times
Reputation: 1876
Quote:
Originally Posted by MikeJaquish View Post
Well, you can ignore most everything else, most particularly when considering a thread wherein the OP cannot get her house sold for an extended period.
It is OK to fine-tune price to the competition, but that price has to be well supported by closed comps.

It is so very common to hear a prospective home seller compare their gorgeous love shack to the one down the street that has been on the market for 400 days without a price reduction: "If that 3 bedroom place is worth $400000, my 4 bedroom place has to sell for $450,000."

If comps say a house is likely to sell for $400,000 and vastly similar properties are Active and listed at $400,000, it is smart to be priced less than the competition.
In other words, current list prices may be overinflated, so people use actual sales as comps.
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