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.
I'm operating under the assumption that most buyers are searching based on search criteria of prices such as $x00/x25/x50/x75 and we're not able to drop into a new bracket. Property is in Florida so new pools of buyers are frequently entering the market. That being said, would a $3k price cut on a high $300s home magically make you more interested in a home? Or would you have already gone and seen the house and just offered $3k or whatever less if you didn't think it was worth the asking price? Thank you in advance for any insight.
I'm not necessarily motivated by price cuts, as it just confirms the property was overpriced to begin with. I don't search on recent price cuts when looking for my next property, per se.
However, I do look at sales price history, and if someone is trying to sell their house for 25% more after a year or less, and EVERYTHING inside that house is not BRAND SPANKING NEW, I keep looking.
I'm not necessarily motivated by price cuts, as it just confirms the property was overpriced to begin with. I don't search on recent price cuts when looking for my next property, per se.
However, I do look at sales price history, and if someone is trying to sell their house for 25% more after a year or less, and EVERYTHING inside that house is not BRAND SPANKING NEW, I keep looking.
Price history and tax value. Check them.
Tax value in a great many areas is just a number used to establish how much the owner will pay in property tax.
Where I am, most properties are assessed 10--15% under market value. 20-25% is not uncommon.
If people were coming to see the house and saying it was overpriced and/or we had padded the price well over market value as in your earlier example, I would definitely see the need to reduce the price. I think it's that there are a ton of listings on the market right now and a lot of new developments going up. I've been monitoring the local listings and it seems like a lot of things are not moving so I do take some comfort in knowing that there are a lot of other people in the same boat right now.
Quote:
Originally Posted by MikeJaquish
If something is selling, it is more competitive in either features or price than your property is.
Getting to the heart of that will sell your house.
Mystery solved. The market is rarely wrong in its response and the market's response is rejection at this price at this moment. Your price may be exactly at fair value but the market disagrees for some reason. What is that reason?
"You must spread some Reputation around before giving it to MikeJaquish again."
I don’t buy a house based on price per se. I buy it based on value. To me. But the little things I value may differ from those that you value. You would pay more for a corner lot, I wouldn’t touch one. You want community water I want private. You want your kids next to their high school not me. You want tray ceilings. You want wood floors in the kitchen I want wood floors in the bedrooms. So many different preferences.
Only if you are looking at nearly identical cookie cutter homes will having a low price be critical. Otherwise it may just be a matter of waiting for the right buyer to see your place then be willing to negotiate a little. Of course the price needs to be reasonable but for the right buyer a 3% price drop won’t pull someone in on the basis of price alone. In a sellers market the seller just waits. In a buyers market yes price is critical. A steady drop of $1000 a week would catch my eye.
If I look at a house I like in my price range, but I know I’d need to put on a new roof, or replace the kitchen, I’m going to expect the seller to take the hit, not me. The price will need to be reduced at least as much as those improvements.
In the real world, outside of HGTV and the coasts, I’ve never bought or sold a house for the asking price, or over the asking price. Always under.
If I look at a house I like in my price range, but I know I’d need to put on a new roof, or replace the kitchen, I’m going to expect the seller to take the hit, not me. The price will need to be reduced at least as much as those improvements.
In the real world, outside of HGTV and the coasts, I’ve never bought or sold a house for the asking price, or over the asking price. Always under.
"Asking price" is irrelevant to value and not at all a good metric for judging success in negotiations.
Mystery solved. The market is rarely wrong in its response and the market's response is rejection at this price at this moment. Your price may be exactly at fair value but the market disagrees for some reason. What is that reason?
"You must spread some Reputation around before giving it to MikeJaquish again."
Thanks.
As I tell sellers, "If you do your job, and I do my job, the market will not lie to us."
Well, I did qualify my statement with "assuming no condition corrections...you need to lower the price if it isn't selling" , but hey, reading is a lost art. You seem capable writing a proper grammatical post, so I'll assume you're either
1-a troll
2-didn't take the time to actually read the whole post
3-a troll.
4-read the whole post but simply overlooked that bit
or
5 - a troll.
Also, rather than using your own judgment, which clearly hasn't worked if what you're currently doing hasn't sold the house, maybe you can rely on feedback from the buyers that have rejected the home.
So I guess everyone who doesn't just lick the boots of the real estate agent industry is a "troll"?
I went through this same nonsense in the 2006 bubble, when agents were trotting around all high and mighty telling everyone they were in charge, you couldn't even get them to return your phone calls. I guess it's the same in the 2019 bubble.
Fine, you'll get your comeuppances when this bubble pops just like the four or five I've already lived through.
So I guess everyone who doesn't just lick the boots of the real estate agent industry is a "troll"?
I went through this same nonsense in the 2006 bubble, when agents were trotting around all high and mighty telling everyone they were in charge, you couldn't even get them to return your phone calls. I guess it's the same in the 2019 bubble.
Fine, you'll get your comeuppances when this bubble pops just like the four or five I've already lived through.
LOL
No bootlicking required.
Requests for intellect or intellectual integrity, OTOH, seem to raise the bar for contribution very very high for folks with no clue.
Or, for trolls.
If your property is not moving, the market is telling you it’s the condition or the price.
If it is not the condition, it must be the price.
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.
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.
