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I have my house for sale in a nice western town, which attracts upscale buyers by the droves. Unfortunately, my house is pretty small and humble, so does not appeal to that exurban demographic. When listing, I was optimistic, and started with a fairly aggressive price for the size of the house, and its condition. Now, one month in, I have had a fair number of people touring (10-15), but only a single lowball offer. Looking at Zillow, Trulia, etc., etc, I have decided that my price is a bit high, but not crazy. Overall, the market seems pretty hot this spring, so I do not want to cut too aggressively, but want to sell in the next 60 days or so.
What do you think is the optimal percentage for your first cut in such a situation? I don't want to be one of those buyers who cuts in $1500 increments for months. I want to do the deed and get some damn (good) offers soon!
What IS the correct price for your house? Do you even know? THAT is the price you should knock it down to. Either you want to sell it or you don't. You are, unfortunately, a poster child for "aggressive pricing" -- it's not "aggressive" to price yourself out of the market, it's foolhardy, and what has happened to you happens to almost every "aggressively priced" seller. You price high, hoping for a sucker to come along and throw money at you. Not too many suckers out there, these days, the housing market has made buyers wary. And many of those buyers have agents, who are perfectly capable of running comps and advising their clients accordingly. So you've wasted a month of prime marketing exposure being priced out of the market, and now you have to play catch-up. *sigh*
Stop looking at the garbage on Zillow and Trulia. Find a good listing agent to run comps for you -- pay them for their time if you don't want to hire a real estate agent to sell your house -- and then consider their advice seriously.
What price range are we talking about?
My rule is simple, if I see a listing with the house I potentially like and the initial price is too high + it never was under contract and been active since day one, I will monitor this house. If I see price change by less than 2%, I will not make any movements towards this house because I know seller will not be willing to take pretty much any price cut. If it's something like 3-5% off, I would think I am dealing with the willing seller, so I might be making an offer.
Disclaimer: I am NOT in the sellers market.
If I may make a suggestion before you drop your price. I would assume you have done a good job with your marketing due to foot traffic in the house. I hope you are tracking the views of the websites that you have posted your property on.
The average home buyer does not understand 129,900 as much as they understand 542.00 per month. Other than passing, we do not even mention the purchase price it is all over the place. If they are renters, they have their current rent to compare the mortgage payment.
We have encountered this problem for investors over and over and in 50% of the cases, they did not slash the price at all. Others have offered concessions such as help with closing costs or small appliance bonus.
5-7% first reduction. 10% if you are really anxious.
BUT, one month in you have only seen the lookers who 'tour' every house. It is unlikely that you have seen a 'real' buyer--including the low ball guy who figured what the heck, you might go for it.
Give it a few months. Maybe through the end of August at least. Then make your move.
Why not turn a 'negative' into a positive? Humble house in a great place......someone who can't afford 'grandeur' might want in. Worth a shot in terms of your marketing strategy.
State the price and I'll tell you where my next reduction would be set at.
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Looking at Zillow, Trulia, etc., etc, I have decided that my price is a bit high, but not crazy. Overall, the market seems pretty hot this spring, so I do not want to cut too aggressively, but want to sell in the next 60 days or so.
