Open Houses and No Offers (negotiation, comparable, rent, value)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Hello. I am in the middle of selling my home. My home has been on the market for 18 days and my Realtor has hosted 3 open houses. I have received only one offer which was 40K below my asking price. My Realtor will be hosting 2 more open houses later this week. I am not sure why my home isn't selling since I live in hot market where there tends to be bidding wars. I believe my home is competitively priced. Any advice? This is the first time I have sold a home so I'm not sure typically why a home doesn't sell. Thanks.
With regard to the offer you did receive, it is hard to judge. It depends on the home. If your house is listed at $1M, a -$40K offer might be a good start. If your home is listed at $200K, a -$40K under would be upsetting.
Either way, you need to verify your pricing to make sure you are priced correctly.
It's not how many open houses are being held, but how many actual buyer showings you receive. If you have good buyer traffic but no offers then it's usually that reality doesn't match with the way the listing shows online (neighborhhod, photos, condition, etc.) These obstacles can be fixed, or overcome with a price adjustement. If there are no showings then review first how the listing looks online (plenty of high quality photos, good description etc.) and second how it is priced compared to other similar homes in the area. 18 days on market doesn't seem very long, but if the average time on market for your area is 5 days, then it's a concern.
No doubt, it is pricing. A fairly priced house will move quickly, especially in a hot market.
Far from the only reason, and may not be overpriced.
To properly evaluate why the property has not already sold, things needed to know.
How many homes for sale in the general area. How many homes have sold in the last 6 months in that same area. With that knowledge, I could know the probability of the home selling within what time frame.
How close to asking price, were the homes that sold, sold. Maybe the $40,000 below asking price offer, is in line with other sales, or may be truly a low ball offer.
What is average time on the market for homes sold, and how long is the listing time for homes for sale. This will tell the normal sales times for the area for homes to be sold.
What is the median price for square feet, that similar homes in the area are for sale at, and for the ones sold.
With that knowledge, I could evaluate why the home has not sold. It could be, that homes are selling slowly in that neighborhood. It could be several reasons. It could be the home is overpriced and that fact alone is turning off buyers. But without that knowledge, all anyone can do is make a wild guess based on their local real estate market. But with the answers, anyone experienced in real estate, can give you an educated guess, not just a wild guess based on their own real estate market. I went into the real estate business as a investment/commercial/business/farm and ranch broker in 1972, and stayed in the business till I finally retired so I have years of experience evaluating why a property is not selling.
Give us the address, and it is very easy to find the answers to the questions I asked above if you can't answer them yourself.
So did you counter on the 40k less offer? That could be a starting point. If the potential buyer comes up 20-25k you're that much closer to selling.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.