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Old 03-04-2009, 09:19 AM
 
3,408 posts, read 5,143,471 times
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My house in on the market for 200k. It is a 2/2, 1300 sq ft. Realtors are giving me feedback that the exterior is fair or good, the interior is good, the location is excellent and the price is a little high, no comment or it is priced right.

Some listing say they are in the same subdivision, but they are really a few blocks away in less desirable neighborhoods. Those listings are priced lower becasue of location.

The only house on the market that is priced lower and is really in the same neighborhood is a short sale 1,050 sq ft 3/1, priced at 179,900. The listing has no interior photos.

A 2/1 the same size as mine is listed at $210,000, is in better condition, but train tracks with trains literally across the street. My house is on the quietest street.

Then there's a 4/1, 1,500 sq ft for $215,000 on a quite street in average condition. It looks well maintained but not updated.

All the above home are priced close to comps from the last few months, but have been on the market 60+ days. Those were not ideal selling months Dec/Jan/Feb, but I am wondering if prices are falling faster than in the previous year. Prices have fallen mayby 10% from peak, but they didn't rise much either, and rents and mortgage payments are similar.

I have had about 15 showing, with 3 people semi interested but no offers in 4 weeks on the market. They may be thinking about it and looking at other homes. So at 200k and no other houses except the short sale priced lower, I thought it was priced right.

I don't want to miss the possibility to selling to any current fence sitters. Should I lower it to 189,900 or lower it to 185,000? 185k would be as low as I'd accept, so there wouldn't be any negotiation room and I'd worry about buyers trying to get the priced reduced after inspection for items already visable or on the disclosure.
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Old 03-04-2009, 09:30 AM
 
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Well, you said you lived in Nashville. Looks like the median income is $45,844, and the median house is $157,400.. so $200k seems high for a 2 bedroom house, especially if there's a 3 bedroom that is not selling at $180k down the street.

It sounds like maybe you're just glossing over comparable sales, saying you're priced "Close to" them, with the caveat that "Those were not ideal selling months." But who knows, I don't know anything about Nashville.
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Old 03-04-2009, 09:33 AM
 
Location: Sarasota, FL
241 posts, read 667,476 times
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General rule of thumb:
If you're getting showings but no offers: lower your price by 5%.
If you're not even getting showings, lower your price by 10%

this assumes that you have no major obstacles to sale.
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Old 03-04-2009, 09:45 AM
 
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A few blocks away is an undesirable neighborhood? That would be a dealbreaker for me.
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Old 03-04-2009, 10:19 AM
 
3,408 posts, read 5,143,471 times
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Quote:
Originally Posted by rubber_factory View Post
Well, you said you lived in Nashville. Looks like the median income is $45,844, and the median house is $157,400.. so $200k seems high for a 2 bedroom house, especially if there's a 3 bedroom that is not selling at $180k down the street.

It sounds like maybe you're just glossing over comparable sales, saying you're priced "Close to" them, with the caveat that "Those were not ideal selling months." But who knows, I don't know anything about Nashville.

The median house in Nashville is $157k, so half are higher and half are lower. You can live in a gang infested neighborhood with bars on the windows if you want to pay 100-150k. Maybe you will feel like you are getting a great deal because it's below the median. Prices in my neighborhood are 180k to 300k and have been selling for that in the last 3-6 months. I priced at the lowest price that was given by 3 different Realtors based on comps, not based on what 2 bedrooms are selling for in a 5 or 10 mile radius.
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Old 03-04-2009, 10:32 AM
 
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Quote:
Originally Posted by cleasach View Post
A few blocks away is an undesirable neighborhood? That would be a dealbreaker for me.
Less desirable. It's all relative. 5-10 blocks to the west are 1+ mil homes and mansions(not McMansions). To the south, it gradually gets more expensive, but no mansions. To the north and the east, it gets gradually worse, with smaller lots and less upkeep. Those are the areas that sometimes claim my neighborhoods name. You can live in a more of a bubble like city, but then you won't have the short commute. It depends on what you want more. You can also pay 400+k and have it both ways.
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Old 03-04-2009, 10:38 AM
 
3,408 posts, read 5,143,471 times
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Quote:
Originally Posted by Ourdreamhouse View Post
General rule of thumb:
If you're getting showings but no offers: lower your price by 5%.
If you're not even getting showings, lower your price by 10%

this assumes that you have no major obstacles to sale.
Ok, I think it will be 189,900 and maybe up the closing cost assistance.

What are obstacles to sale? I don't think I have any, because I don't need a short sale and I can move within a couple weeks.
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Old 03-04-2009, 10:55 AM
 
22,770 posts, read 25,251,597 times
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Quote:
Originally Posted by FelixTheCat View Post
The median house in Nashville is $157k, so half are higher and half are lower. You can live in a gang infested neighborhood with bars on the windows if you want to pay 100-150k. Maybe you will feel like you are getting a great deal because it's below the median. Prices in my neighborhood are 180k to 300k and have been selling for that in the last 3-6 months. I priced at the lowest price that was given by 3 different Realtors based on comps, not based on what 2 bedrooms are selling for in a 5 or 10 mile radius.
It seems odd to me that you say 50% of Nashville is gang infested with bars on the windows. I didn't know it was so bad. Anyway, I'm not going to argue about this, good luck selling your house.
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Old 03-04-2009, 11:40 AM
 
3,408 posts, read 5,143,471 times
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Quote:
Originally Posted by rubber_factory View Post
It seems odd to me that you say 50% of Nashville is gang infested with bars on the windows. I didn't know it was so bad. Anyway, I'm not going to argue about this, good luck selling your house.
I'm not arguing either, but this is how it is. For 100-150k value, it could be gang infested or you could enjoy some of what I will list for you. My father had rentals in areas in Nashville in the 100-150k price range. There are bars on the window on houses here and there, chain link fences here and there. Crap in the yard like kids toys, beer bottle caps, trash, bbqs, maybe even a old mattress or couch... charming! It's not every house like that, but enough to know the bars and fences are there for a reason.

He had to personally go to the across the street neighbor and ask if he could haul away the pile of junk in the front yard to not scare away possible tenants. He picked up hundreds beer caps from the front yard and driveway of one house. When a house was vacant he put his tools in the garage so he could work on the house. It got broken into. Then some black neighbors came over to tell him (not ask) not to rent or sell to Mexicans....how neighborly! The same house got broken into when it was for sale again and he found used condoms. If you don't mind those kinds of things, then you can save 50k or 100k. I have no regrets for paying more for location. You get what you pay for, location included.
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Old 03-05-2009, 09:10 AM
 
Location: Sarasota, FL
241 posts, read 667,476 times
Reputation: 127
Quote:
Originally Posted by FelixTheCat View Post
What are obstacles to sale? I don't think I have any, because I don't need a short sale and I can move within a couple weeks.
By "obstacles to sale" i meant such things as: a really bad location (e.g. next to a major highway or dump); the need for immediate, major repairs; some sort of title or legal issue; etc. If you don't have any of those kinds of obstacles, the rule of thumb applies.

Of course, if you lower your price by 5% and still don't get any offers, you're probably "following the market down." In other words, prices in your market are moving lower, and your 5% reduction is no longer enough to put you into a competitive price range.
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