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Old 10-05-2013, 11:31 AM
 
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I think I took some bad advice when I listed my house and priced it too high. In June, houses were selling in one day. The market has cooled since and buyers have more options.

Anyway, I want to do some more staging, new pictures, and lower the price. By and large, what do potential buyers think when they see this? Will it produce more interest or will it make me look vulnerable? Both? Neither?
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Old 10-05-2013, 11:40 AM
 
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Depends on your market, your house and what else is out there for sale.
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Old 10-05-2013, 11:50 AM
 
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It makes me think that the initial price was too high and the current one probably is, too. And that the seller will probably take an attitude of, 'I already lowered it once so I don't care what the comps say; this is non-negotiable'.

IOW, it makes it seem like the seller will be a hassle to deal with. But it would not stop me from making a fair offer on a house I really wanted. I just would not expect it to be accepted. I would not count my chickens too much.

As the seller, this probaby means that you should expect that buyers will walk away from a counteroffer, figuring it confirms that you are not serious about selling, so you should just accept offers as-is or not be very attached to your counter.
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Old 10-05-2013, 12:47 PM
 
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I too overpriced my house based on bad advice from my realtor. When I lowered the price, I still didn't get what I was looking for. I pushed for a second price reduction (and that's as far as I was willing to go before taking it off the market) but the realtor held his ground, saying it makes you look weak and desperate to sellers, so all you'd get is lowball offers. I did eventually get a couple of low offers that we were able to negotiate up to the final bottom line price I was pushing the realtor for.

There are plenty of people here who will recommend frequent price reductions, but without knowing your market, your particular house, and how motivated you are to sell right away, it's hard to give that advice.

Who knows.... YMMV.
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Old 10-05-2013, 12:57 PM
 
Location: NJ
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Depends. There is not going to be a blanket answer.
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Old 10-05-2013, 12:57 PM
 
Location: North Idaho
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I always think it makes the house look like it was overpriced and the seller is going to be unrealistic to negotiate with.

However, the agents around here have a very annoying trick of lowering the price by a couple hundred dollars every 2-3 weeks because the listing will then come up at the top of a search (because of the change in terms).

I lowered the price of mine when there was no action, but I instructed the agent to not list it as a price reduction. The price was dropped on the listing and no other mention was made of it.

A real price drop brings in an entirely new group of lookers. They don't need to know that the price was dropped. They just need to know that their agent found a good prospect for them to look at.

If there are no lookers at all, there is no reason to persist with a price. The price is obviously not working. Price is the biggest factor in purchasing a house and if the seller genuinely wants to sell the house, they have to price at the level that the buyers are purchasing.
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Old 10-05-2013, 01:12 PM
 
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Quote:
Originally Posted by oregonwoodsmoke View Post
I always think it makes the house look like it was overpriced and the seller is going to be unrealistic to negotiate with.
I was uncomfortable with the price from the beginning, but didn't want to miss out. Now I just think it was just a tactic by the real estate agent who was angling for the listing. I'm really glad I didn't go with her.

I should have gone with my gut.

Quote:
However, the agents around here have a very annoying trick of lowering the price by a couple hundred dollars every 2-3 weeks because the listing will then come up at the top of a search (because of the change in terms).
I did not know this.

Quote:
I lowered the price of mine when there was no action, but I instructed the agent to not list it as a price reduction. The price was dropped on the listing and no other mention was made of it.


A real price drop brings in an entirely new group of lookers. They don't need to know that the price was dropped. They just need to know that their agent found a good prospect for them to look at.
I did no know this either. I like this. When I do lower the price, I will request that it is not listed as a price reduction. It will have new pictures and more strategic staging. Hopefully, this will generate the interest I am desiring.

Quote:
If there are no lookers at all, there is no reason to persist with a price. The price is obviously not working. Price is the biggest factor in purchasing a house and if the seller genuinely wants to sell the house, they have to price at the level that the buyers are purchasing.
I agree.

Very good input. Thanks.
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Old 10-05-2013, 01:20 PM
 
Location: Kailua Kona, HI
3,199 posts, read 10,993,741 times
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Another option is to take it off the market for a month (or whatever the rule is with your MLS service) and re-list it with the new price and new photos. Then it will pop up on the hotsheets as a new listing. Obviously realtors are going to remember it but this can get you some attention. Ask your agent to schedule an open house the weekend after the new listing comes out.
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Old 10-05-2013, 01:40 PM
 
3,519 posts, read 4,374,798 times
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Quote:
Originally Posted by KonaKat View Post
Another option is to take it off the market for a month (or whatever the rule is with your MLS service) and re-list it with the new price and new photos. Then it will pop up on the hotsheets as a new listing. Obviously realtors are going to remember it but this can get you some attention. Ask your agent to schedule an open house the weekend after the new listing comes out.
I like that idea, but am just a bit worried about taking it off the market as we go into the winter months. If it was February, it wouldn't make me as nervous.

I'll think about it, though.
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Old 10-05-2013, 01:47 PM
 
Location: Portlandish, OR
899 posts, read 1,452,107 times
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i always look at past listings and prices (and reductions) on redfin. I think it depends on how much the property is overpriced by from the beginning. A little bit, no big deal. I have done that myself, and my realtor was honest with me that we could list it at A (reasonable on the high end) and that he thought it would sell for B - and he was right. But a grossly overpriced house and/or multiple drops in price makes me think the seller is out of touch with reality and will be a pain to deal with.
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