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Or use a competent agent that includes staging and professional photography in their commission. The seller should not be incurring these costs if she has a professional agent.
She obviously does not.
Did you see the photos that are up there now?
No, this was originally a 3BR, 1.5BA home, quite a luxury in 1953 when house was built. It is obvious that all three bedrooms are original to the house. The additions include a larger family room on back of house (behind kitchen), an office, laundry room and garage. All were constructed with brick to match the original.
Not trying to be argumentative, but...
My parents bought a house in a new subdivision in Louisiana, built in 1953, and it and every other house in the decidedly middle class neighborhood (all homes under 1600 sf total) had 3 bedrooms and 2 full bathrooms, so I don't think that a 2nd bathroom for a 3rd bedroom built back then, even in SC, would have been considered a luxury, and by today's standards, it is inadequate and limits your resale potential. Pre-war homes around the country often had only 1 bathroom for 3 or more bedrooms, but in the boom years of the 50s, people were forming families and the 2nd bathroom was a requirement, not a luxury. Regardless, it is shame that you or a prior owner did not add a second full bath instead of adding a bonus room to the back of the house. Finally, unless all the sales comps you used have similar add-ons, the price per SF for additions usually doesn't warrant the same price per SF for the whole house as homes without the addition (or homes with the same living space that was originally built into the floor plan).
All my concerns about the quality and added value on a per sf basis of the "bonus space" still remain with your house, regardless if the exterior brick matched or not - if when i enter the room it is obvious that the "room" was the former patio or garage, I deeply discount its value (and in many cases, those enclosures detract from value - I recently saw a home where I commented that if it would be possible to convert the room back to the original patio state, it would increase my interest in the house). Actual additions can be more added value, but usually at a cost of lost yard space, or the room that got added on really doesn't flow with the layout of the original house.
So unless all the sales comps (not listings, but actual sales in the last couple of months, and not during the mini peak that many markets experienced in mid to late 2013) that you or your agent used to price your home had similar add-on rooms or enclosures, AND only had 1.5 bathrooms, you or your agent are relying on the wrong comps. Any 3/2 in your neighborhood, all else being equal, is really not comparable in the minds of the vast majority of buyers on a price per SF basis. That half bath is really costing you in terms of potential resale and desirability for the vast majority of people who would be interested in the home. The more buyers who can see themselves in your home, from families to singles, from "newlyweds to nearly deads," the greater your chances of selling your home.
There have been many articles in just the past week or so about national trends in dropping existing home sales, a bit unexpectedly, this Spring, after the rally of 2013 (a brief rally that encouraged many people - maybe you, too? - to try to finally sell their homes after 7 or 8 years of being stuck, to move on to other towns, or jobs, etc). Check USA Today for instance, about a week ago, and look for articles in reputable mags and papers (WSJ and NY Times) talking about how many would-be buyers are returning to renting by choice rather than buying today as opposed to the reverse trend in the second half of 2013. None of the above national trend really applies to hot markets like Miami Beach or NYC, but my guess is that your town is pretty much part of the trend that is in place right now across the country - it has been a disappointing selling season all over the country - could all change in 3 or 6 months - but interest rates are set to rise later this year when the Fed finishes the QE "taper" and mortgage rates will jump just enough to discourage many marginal home buyers who don't have any income growth to show for the last 10 years, much less the current year...if you really need to sell, drop your asking price if you now conclude it is too high.
In any case, best of luck. I sold a $100k house 30 years ago for $6500 less than I had paid for it 5 years earlier, this after having it on the market for over a year. It was sheer agony at the time, but after a while I came to realize that it was the best thing we ever did for ourselves, allowing us to move to another city with better paying jobs and better schools for our kids...
Last edited by Westbound and Down; 05-06-2014 at 10:04 AM..
I feel like you are losing potential buyers with the one and a half bath situation. It would not be a big deal if the comps weren't 2 full baths. I would drop your price a bit, so the listing doesn't go stale.
And the kitchen sounds atrocious, to be frank. Kitchens and baths are huge selling points, and lack of space, mismatched appliances, and cheap materials are a big drawback. The minuses of this house far outweigh the pluses, IMO. I'd take a lower offer and run. As you say, the longer it sits, the worse it looks.
And the kitchen sounds atrocious, to be frank. Kitchens and baths are huge selling points, and lack of space, mismatched appliances, and cheap materials are a big drawback. The minuses of this house far outweigh the pluses, IMO. I'd take a lower offer and run. As you say, the longer it sits, the worse it looks.
I haven't waded through the thread, but I am curious when did the OP buy the home? And when she did buy it, did she think she got a "deal" on it because of the kitchen and lack of 2nd bathroom? If she bought in the early 2000s, she may have gotten somewhat of a "deal" compared to more desirable houses, and maybe it was all they could afford at the time. But that "deal" went sour in 2006, and if she at least had a home that was updated at the time, or updated in her ownership, she would have a much better chance of selling it today.
But the point is that people today are not going to pay top $ for homes that need a lot of work. If you buy a house today that needs this kind of work, you are only going to do so at a deep discount so that you can take on the pain, expense, loss of use, and the risk of updating the kitchen and baths. Otherwise you will look elsewhere for a move-in ready home.
In hot, go-go markets (think 2003 to 2005 just about everywhere), people were buying anything they could "afford" (although as we now know they couldn't afford the adjustable rate mortgages and other tricks that got them into the houses in the first place), for fear of never getting another chance. Well, they were wrong - the "chance" started in 2006, and unbelievably to even me is still here...so if someone bought a fixer upper pre 2006 that they never got around to fixing up, shame on them if they are trying to sell now...or forget the "shame" part and just get real - use the correct comps - and price your house to sell.
Last edited by Westbound and Down; 05-06-2014 at 11:44 AM..
Wouldn't be shame on the seller's agent for not knowing all of these points?
Yes, but seller's agents will typically tell sellers anything to get the listing, and as I said in an earlier post, I have yet to meet a competent broker/agent who truly understands market value and especially how to "break it" to sellers that their house is not worth as much money as they hoped...even when it was the agent in the first place who told them what to list the house for...some people actually believe that the agent who tells them to list at a higher price and thus assume that agent is "smarter" or harder working and they must be able to actually deliver the above market value results that a more honest or competent agent recommends, so they go with the one who recommends the higher list price. That may have worked 10 years ago when price appreciation covered up overpayment mistakes in a matter of months, and it may still work in certain markets today (like $20 million homes in the Hollywood Hills where the agent may have actual pull or connections with buyers for whom price is no object) but not since 2006 for the vast majority of us regular folks.
I would NEVER ask a real estate agent what I should list or sell my house for, but then again I am a retired real estate appraiser and have nearly 40 years experience renting, buying and selling homes, too, so I don't need them for anything except to do all the paperwork / legwork, show me houses, show me the MLS, pester other agents for me, screen me from angry buyers or sellers, etc. They are useful tools, but their utility is limited for someone like me, and should be viewed skeptically by all buyers and sellers on issues of price and value.
Back in 2005, not many people saw the crash coming. I didn't so much see it coming, at least not the severity of the crash or the precise timing, but I had been renting since around 2000, and I had no intention of buying or getting into bidding wars, etc. So I was either smart or lucky (probably both), and I am only now looking at buying a house, and I am in no hurry, either...didn't find what I wanted (right house, right price, right location) so I just signed another lease, will start looking again around the end of the year.
Last edited by Westbound and Down; 05-06-2014 at 11:51 AM..
That's a real shame that you would NEVER ask a real estate agent what I should list or sell my house for, and have yet to meet a competent broker/agent who truly understands market value and especially how to "break it" to sellers that their house is not worth as much money as they hoped; isn't that their job?
What's the point then? You could MLS it yourself for 275.00, hire a real estate attorney and be done.
OP Lisa, is the grate in the big front picture window by the front door removeable? It makes the front look so busy, IMO I think it would look better if it was gone.
And the kitchen sounds atrocious, to be frank. Kitchens and baths are huge selling points, and lack of space, mismatched appliances, and cheap materials are a big drawback. The minuses of this house far outweigh the pluses, IMO. I'd take a lower offer and run. As you say, the longer it sits, the worse it looks.
I'll somewhat disagree with that. While true that kitchens and baths sell homes, in the specific instance of the OP, they're better off leaving kitchen as-is, as anyone purchasing will want to re-do it anyway; if you renovate, you may lose out on potential buyers as it might not be to their taste. For this house, an older kitchen that has good bones isn't necessarily a huge drawback, as there are definitely buyers out there who would look forward to renovating the kitchen and "making it theirs."
I'll agree that OP needs to lower the price ASAP to reflect the deficiencies in their home (OP agrees with this btw but husband not convinced) or find a way to convert the 1/2 bath to a full, so they're at least comparable with everything else on sale in their market.
That's a real shame that you would NEVER ask a real estate agent what I should list or sell my house for, and have yet to meet a competent broker/agent who truly understands market value and especially how to "break it" to sellers that their house is not worth as much money as they hoped; isn't that their job?
What's the point then? You could MLS it yourself for 275.00, hire a real estate attorney and be done.
OP Lisa, is the grate in the big front picture window by the front door removeable? It makes the front look so busy, IMO I think it would look better if it was gone.
I might do that MLS thing if I was selling a home today, but since a buyer's agent costs me nothing (they are paid by the seller), I will always find the best one I can and then use them for my purposes. Also, I have done a FSBO before, and it is a dreadful chore showing the house to potential buyers, fielding phone calls, screening buyers. MLS exposure is a good thing - it exposes you to buyers - but many people don't want to deal directly with sellers (I don't, either), and if you use MLS, you are going to ultimately pay at least some commission to the broker/agent who brings you a buyer. I like that my selling agent runs interference, fields all the calls, shows the house, etc. As far as I am concerned, they earn their pay if the house sells, but it is my responsibility as the seller to understand the market and where my house fits into the scheme of things, and my burden to price it correctly depending on my timeframe and motivation, tempered by the realities of the market for my home (and that starts with using current and truly comparable sales).
As I said, brokers can be useful tools. You just have to know what they are most useful for, and also know their limitations; in my experience, they are most limited in pricing and valuation considerations. Brokers and agents tend to know the paperwork and contracts pretty well, too, and they have contacts with home inspectors and title companies and that sort of thing that help, more knowledge and experience with those 'nuts and bolts" things in they home buying process than average person who only deals with that a few times in their lifetime, or at least infrequently enough to rely on their agent for those things.
If you are going to be a buyer and seller of houses, you really owe it to yourself to do the homework and not depend on the agent for the analysis of your home and the market - they are excellent resources for providing the raw data they can obtain from MLS - but you need to do the analysis of the comparable sales and make all the decisions about pricing.
If you hire an agent for buying or selling, hire the best and smartest one you can find, and one that you can work with, who is easy to get in touch with, who returns your calls and emails promptly. They all make the same percentage on individual home sales, so you can't differentiate them much by that measure.
I recently used a buyer broker in my failed house hunt who takes no listings, only works the buyer side of the game, and I liked that aspect a lot. She dedicates 100 percent of her time to working with buyers, so there is no chance for conflict (from my perspective) with her splitting her time hunting for listings and trying to sell me one of her listings. I felt she approaches home buying with more of a "buyer's eye" or at least she got in sync with what I was looking for and had some interesting suggestions. But I still did not rely on her for value questions, because she was frankly a little weak in that part, but most of them are.
Last edited by Westbound and Down; 05-06-2014 at 01:25 PM..
Thank you, WB&D, for clarifying. Noob here. Trying to learn what a realtor, buyer agent, seller agent, broker and all the differences are.
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