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If I received such a call from a listing agent, I am inclined to perceive desperation, either the owner's or the agent's. If the buyers were remotely inclined to make an offer, I suspect they will make a low ball offer in response to the perceived desperation. And that low ball may be what it's going to take to get sold, in many areas.
I totally agree. If I got that call from a listing agent I would definitely take it as desperation, but in this case I would be confused because, based on your statement, it sounds as though you haven't adjusted the price in over 4 months . . . is that right? That would make me worried that you'll be difficult to negotiate with. Desperate for an offer but unwilling to adjust your expectations about the current fair market value.
The thing with buyers at this point (at least here in Atlanta) is that none of them are in a hurry. They're all searching for steals, they know that prices are not going back up any time soon and very likely haven't reached the bottom, and they've seen mortgage rates continue to hit new historic lows every week. If you want them to get a sense of urgency, you have to give them something to get really excited about. Unfortunately, at this point that usually means offering them a deal too good to refuse. If there are 4 potential buyers out there who all love your house, then lower the price and have your agent inform all 4 buyers agents about it (and the fact that there are a number of people who've had 2nd showings who you're also informing). Once the price becomes tempting enough, at least one of them will bite. Until then, there's always the chance that the next house they see will move to the top of their list.
Okay, I guess I was a little too strong in my wording and you guys took it literally. I'm sure that agent (who is very successful on the #of closed homes even in this down market) does not literally say "How can we get you to buy this house" but does try to find out what buyers objections are and if they could be overcome. Obviously if the buyers are just kicking tires, need to sell their own home, etc, she finds that out and moves on. But if she gets glowing feedback on the house, if an offer doesn't come, isn't it part of the negotiation process to call and ask the agent if she knows why they haven't made an offer? Maybe it's something really stupid like, well, they don't like xxx, (where xxx can be changed). So, isn't it reasonable to say, well, if we changed xxx, would that help?
Sorry if this is a stupid question, but one thing realtors have to remember is you are the professionals, you do it for a living. Sellers, hired them, and are expecting some guidance. Sellers sell 3, maybe 4 houses, if that, in their lifetime. It maybe only their second time selling and the first was a long time ago in an up market. Sounds like some of you guys are saying nope, the realtor shouldn't do a thing, just sit back and wait for someone to offer something. Okay, consider my expectations readjusted.
Like, my realtor has not suggested lowering our price. We are already at the low end of the market for a 3 bed 2.5 bath home in our town. We have a 3 car garage (no other house under 500K does in our town), with a huge room above (my husband used as a woodworking shop but it's empty now) , the house has been renewed top to bottom, and has extras like a hottub. It's been staged, decluttered, etc. When we did lower our price the first time (our idea) we dropped it 15K. It was already priced 5K under the lowest CMA. It's getting to the point where you can't build that house on that lot for that, certainly not with tile and hardwood floors, stainless appliances, etc.
We are going to drop it again, with the new listing, but I'm not sure what the heck buyers are expecting? To me, dropping your price 2K every week seems more desperate. All this talk on this group about low-ball offers....so no matter how low the price is they are still going to offer less, makes sellers leary of continually dropping their price.
Of course we are willing to negotiate. Do we need to put that in the listing? Isn't that pretty much a given in this market?
We are going to drop it again, with the new listing, but I'm not sure what the heck buyers are expecting? To me, dropping your price 2K every week seems more desperate. All this talk on this group about low-ball offers....so no matter how low the price is they are still going to offer less, makes sellers leary of continually dropping their price.
Of course we are willing to negotiate. Do we need to put that in the listing? Isn't that pretty much a given in this market?
Buyers are expecting the moon right now. Seriously. The only homes that are moving in my market are foreclosures and short sales. Normal sellers can't compete. There are homes that still sell in 30 days here, but they are the creme de la creme -- great homes, in great neighborhoods, in great condition, that show perfectly, and are priced aggressively the day they hit the market. Everything else sits and sits and sits. There just aren't many buyers ready to pull the trigger. Every agent I talk to says the same thing. Their listings won't sell and the buyers they are working with are just in no hurry at all to buy.
It's not that anyone on this board wants you to take a bargain basement price for your house. I think most agents would recommend that, if it's at all possible, you take your home off the market at this point and wait for a better time to sell. But if you really, really want or need to sell now, and the house as been on the market for almost 6 months without an offer, the reality is that probably the only thing that will entice a buyer to finally pull the trigger is to lower the price enough to where it's perceived as too good a deal to pass up. And that's not generally a $2,000 price cut or even a $5,000 price cut (depending on your price point). It's usually more like a 10% price cut. And yes, they are still going to come back with a lower offer and probably want full closing costs paid and may ask to have your furniture and wardrobe included as well! Buyers know they are in the drivers seat and they are taking absolutely full advantage of it.
I don't know why your agent hasn't suggested a price cut. Some agents are timid -- yours may be even though he or she is one of the top producing agents in your area. And production over the past few years is no guarantee that he or she has what it takes to do well in this market (as though anyone really does because in many areas it's just that nothing is selling). Personally, I'm hoping that things pick up post-inauguration. A lot of the market is driven by emotion. If people feel more hopeful then they may be more inclined to make a home purchase. If the mood of the country becomes more optimistic, that could translate into more homes moving. But even if we start to sell houses again, most areas of the country have a HUGE surplus of inventory. Even if we go back to a relatively normal level of sales, it will take at least a couple of years to clear out the existing inventory and there are more and more foreclosures coming on the market each month.
This is simply the environment in which we must manage business for the time being. Sellers have to accept that. I don't know your situation or the market in your town. But I suggest you take a good look at all the homes that are on the market right now. Figure out how long they have been on the market. Has anything been selling in the past 3 or 4 months? What's sold? What's the condition of those homes? How much did they sell for? What's still available that you're currently competing with. And look at it completely dispassionately. Realistically, if you were a buyer, what would it take to entice you to buy the next house that sells in your area? Knowing that you're in no hurry -- home prices may continue going down for the next year (or 2) -- and interest rates may continue to slide? What number would be too good for you to continue sitting on the fence?
Best of luck! Believe me, all of us on this board feel your pain.
Okay, I guess I was a little too strong in my wording and you guys took it literally. I'm sure that agent (who is very successful on the #of closed homes even in this down market) does not literally say "How can we get you to buy this house" but does try to find out what buyers objections are and if they could be overcome. Obviously if the buyers are just kicking tires, need to sell their own home, etc, she finds that out and moves on. But if she gets glowing feedback on the house, if an offer doesn't come, isn't it part of the negotiation process to call and ask the agent if she knows why they haven't made an offer? Maybe it's something really stupid like, well, they don't like xxx, (where xxx can be changed). So, isn't it reasonable to say, well, if we changed xxx, would that help?
Sorry if this is a stupid question, but one thing realtors have to remember is you are the professionals, you do it for a living. Sellers, hired them, and are expecting some guidance. Sellers sell 3, maybe 4 houses, if that, in their lifetime. It maybe only their second time selling and the first was a long time ago in an up market. Sounds like some of you guys are saying nope, the realtor shouldn't do a thing, just sit back and wait for someone to offer something. Okay, consider my expectations readjusted.
Like, my realtor has not suggested lowering our price. We are already at the low end of the market for a 3 bed 2.5 bath home in our town. We have a 3 car garage (no other house under 500K does in our town), with a huge room above (my husband used as a woodworking shop but it's empty now) , the house has been renewed top to bottom, and has extras like a hottub. It's been staged, decluttered, etc. When we did lower our price the first time (our idea) we dropped it 15K. It was already priced 5K under the lowest CMA. It's getting to the point where you can't build that house on that lot for that, certainly not with tile and hardwood floors, stainless appliances, etc.
We are going to drop it again, with the new listing, but I'm not sure what the heck buyers are expecting? To me, dropping your price 2K every week seems more desperate. All this talk on this group about low-ball offers....so no matter how low the price is they are still going to offer less, makes sellers leary of continually dropping their price.
Of course we are willing to negotiate. Do we need to put that in the listing? Isn't that pretty much a given in this market?
How does your home compare to comparable homes sold in 2001, 2002, 2003?
If it is drastically more, then you might consider that as an issue. I know for me it is such a huge obstacle to offer someone 20%-30% more than homes were selling for just a few years ago. I just can't do it, knowing what I know about the economy.
In a market like this I actually am more focused on returning to "sustainable prices," if that makes sense. Not sayin' I know where that is, exactly.. but good luck.
I am a fully qualified buyer who will always make a "clean" offer with NO contingencies. I want to live in the house and am not an investor. I think I am a typical buyer. There are MILLIONS of excellent houses for sale, why do I have to settle for "junk" at a high price? "Junk" you say? Yes, because it is the market that sets the prices not a comp or CMA or Real estate agent! Any real estate agent or their friend or other investor will immediately buy properly priced houses. Its legal..! So is it legal for buyers to wait until they either find the best value or wait until prices start to drop more. I try to look at at least 1-2 houses per day. Almost all of the good deals are picked up by insiders before I even see them. I have seen houses for sale on the MLS at 4 am, and by 5 am the house already has a cash offer. The listing agent puts it "Pending" by the time it's 7 am. Explain that! IT'S ALL ABOUT PRICE to smart buyers. I know many many buyers like me. We watched the housing carnage from the sidelines. Why should we pay the HIGH prices of today, when we KNOW...IN OUR BONES...that as soon as we make an offer, the house will continue to lose value. I have been ACTIVELY looking for over a year, as a very careful buyer. EVERY SINGLE HOUSE that I "would" have purchased at the listing price is already UNDERWATER. Who needs that? Why join the pain and pity party of mortgage debtors? So I promise you that if you REALLY want to sell, immediately lower the price until your telephone starts ringing off the hook. Lower quickly and keep lowering it until you star getting swamped with calls. I bet your first offer will be from a real estate agent. They will see your price drop FIRST.
I also recommend that you have a buyers agent show you similar properties. You will have a different perspective on your pricing strategy if you do. Currently, every house I screen must be at least 60% below 2006 prices. I am looking at a basic new house that was sold in 2005 for $895,000 that is now selling in the low $200,000's. It already has a cash offer at HALF that price with NO contingencies or appraisal required. THIS IS TODAY"S market....and prices drop EVERY DAY. That's why I don't feel I have to rush! I have a large chalkboard with my offers on it. Remember this. EVERY SINGLE "owner" who is upside down today...was a winner not long ago. WHY BECAUSE THE so-called "WINNERS" are those who paid the MOST for the house. Think about all "winners" are now losers in a declining market. If we "fall in love" with a house and do not bid or offer high enough, WE ARE THE WINNERS....and can wait for another dream home. Every one of those "dream houses" we did not buy because we were NOT the highest bidder... ARE UPSIDE DOWN TODAY. EVERY ONE OF THEM... So If you want me to make an offer... CUT YOUR ASKING PRICE. If I find it before a Real estate agent or investor, I might own it...but will know that at least for the next few years ...the house WILL LOSE MARKET VALUE? Interest rates can only go up. Mine is already at 3% with no points. Unemployment...underemployment are killing the market. So we can wait. If we wait too long...so what there are over 7 million houses in the shadow inventory....and if you take your house off the market today to wait for higher prices...you will be competing with all those other houses hidden in the shadows but not on the market.
I am a fully qualified buyer who will always make a "clean" offer with NO contingencies. I want to live in the house and am not an investor. I think I am a typical buyer. There are MILLIONS of excellent houses for sale, why do I have to settle for "junk" at a high price? "Junk" you say? Yes, because it is the market that sets the prices not a comp or CMA or Real estate agent! Any real estate agent or their friend or other investor will immediately buy properly priced houses. Its legal..! So is it legal for buyers to wait until they either find the best value or wait until prices start to drop more. I try to look at at least 1-2 houses per day. Almost all of the good deals are picked up by insiders before I even see them. I have seen houses for sale on the MLS at 4 am, and by 5 am the house already has a cash offer. The listing agent puts it "Pending" by the time it's 7 am. Explain that! IT'S ALL ABOUT PRICE to smart buyers. I know many many buyers like me. We watched the housing carnage from the sidelines. Why should we pay the HIGH prices of today, when we KNOW...IN OUR BONES...that as soon as we make an offer, the house will continue to lose value. I have been ACTIVELY looking for over a year, as a very careful buyer. EVERY SINGLE HOUSE that I "would" have purchased at the listing price is already UNDERWATER. Who needs that? Why join the pain and pity party of mortgage debtors? So I promise you that if you REALLY want to sell, immediately lower the price until your telephone starts ringing off the hook. Lower quickly and keep lowering it until you star getting swamped with calls. I bet your first offer will be from a real estate agent. They will see your price drop FIRST.
I also recommend that you have a buyers agent show you similar properties. You will have a different perspective on your pricing strategy if you do. Currently, every house I screen must be at least 60% below 2006 prices. I am looking at a basic new house that was sold in 2005 for $895,000 that is now selling in the low $200,000's. It already has a cash offer at HALF that price with NO contingencies or appraisal required. THIS IS TODAY"S market....and prices drop EVERY DAY. That's why I don't feel I have to rush! I have a large chalkboard with my offers on it. Remember this. EVERY SINGLE "owner" who is upside down today...was a winner not long ago. WHY BECAUSE THE so-called "WINNERS" are those who paid the MOST for the house. Think about all "winners" are now losers in a declining market. If we "fall in love" with a house and do not bid or offer high enough, WE ARE THE WINNERS....and can wait for another dream home. Every one of those "dream houses" we did not buy because we were NOT the highest bidder... ARE UPSIDE DOWN TODAY. EVERY ONE OF THEM... So If you want me to make an offer... CUT YOUR ASKING PRICE. If I find it before a Real estate agent or investor, I might own it...but will know that at least for the next few years ...the house WILL LOSE MARKET VALUE? Interest rates can only go up. Mine is already at 3% with no points. Unemployment...underemployment are killing the market. So we can wait. If we wait too long...so what there are over 7 million houses in the shadow inventory....and if you take your house off the market today to wait for higher prices...you will be competing with all those other houses hidden in the shadows but not on the market.
Verily, verily, I say, I don't think a cash buyer, who purchases with no inspection, appraisal, or title contingencies would be considered a "typical buyer."
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Quote:
Originally Posted by MikeJaquish
Verily, verily, I say, I don't think a cash buyer, who purchases with no inspection, appraisal, or title contingencies would be considered a "typical buyer."
Currently, every house I screen must be at least 60% below 2006 prices. I am looking at a basic new house that was sold in 2005 for $895,000 that is now selling in the low $200,000's.
I think this listing agent has been doing her job. If your house is in every ones top 3, the only reason to buy the other one is because they just like it better. You don't have a house with a lot of negatives to mention. The house is getting plenty of activity and interest. If this house is on the top of the list and getting so much positive feed back why not just lower the price a bit and keep your agent? If your agent has been asking for feedback and trying to find out what can be done and no negatives come back, how is this her fault? If you lower it and go with another agent it may likely sell, not because of your new agent, but because of your new price. I hate it when people treat agents unfairly like this.
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