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Facts:
MSL: 933119
15+ photos, price, details, etc.
I put out a for sale by owner sign back in Jan. and was asking 195,900. I knew that was too high. Well, a couple who has friends around the corner wanted to look. We spent a good bit of time inside and then an outside view. They asked questions, etc. Before they left, they wanted to look inside "one more time". They left, I called them with HOA info and they said they thought they needed a little more square feet.
I had a buyer's agent who had helped me since mid 2009 and had shown me several houses. I had planned all along for her to list this house for sale. It has been listed since about 4-15-10. Three showings before April 30th, the day the home buyer credit expired and one showing since them. Brochures by the street and 11 have been taken, maybe kids, maybe neighbors, maybe lookers.
Of these 4 showings, one got me a bunch of stains on my carpet and I wonder why showings require drinks to be carried in the house. I'm not allowed at the showings. My selling agent has not been there either.
Only two feebacks from these 4 showings and both said "house needs too much work" to be updated.
Updated = ? new cabinets, new flooring, new carpet, new paint, new house?
Why don't think look at houses built after 1995 to get the up to date features they want?
I'm told these showings were not potential interest, but rather people looking at all houses in their desired priced range and location in regard to schools, job, etc. Then they go home after viewing all these homes and compare and see what they are getting for their money. Shopping around in effect, but "my house" is not being viewed seriously because it is priced too high. I felt, if the price was off, there would be no showings.
I'm being told the house needs to sell in about 9 months or lookers will begin to wonder why. And if 10 showings and no potential interest (please define potential interest - phone call to my agent an hour after the showing?) then lower the price. Why is it always concluded that showings are not potential interest? They see the photos, the details, the price, they can drive by and see the exterior and look in the windows and they STILL ask for a showing. This makes me think my price is not the issue.
What are some opinions on what to do and think?
I'm listening to my agent as a selling agent and also knowing all the things we talked about when I was viewing houses myself and she was my buying agent. I have not found a house yet, but still she is trying to explain the role of these buyer agents that are showing my house. So, a slight conflict of interest? She being my selling agent and buying agent? Not a conflict, just I'm being told, the buyer will expect me to pay alot of their buyer's fees, however, when I was a buyer-looking, I was expected to pay my own buyer's cost, the seller "might", etc. I know it is pretty standard for the seller to pay the commission. That is 6% for me unless my agent finds the buyer = 4%. Then I'm told my total cost might be 10% or more. If the commission is 6% and the house sells for 180, then 10% (commission and other) would cost me about $18,000. My agent says my house should be priced 180-189. That is a wide range for me. Only a $540 difference in commission and to the buyer $9000 over 30 years = about $25 a month. I'm hoping at some point, location which is prime for my house, will be worth an extra 5000-10000 to some one over a 30 year loan.
I'd like to be a fly on the wall during these showings so I can hear the agents and lookers and know the REAL feedback. One feedback was "GREAT POTENTIAL" but the whole house needs work. Ha.
I know what the house needs but it seems the people have moved out of a $250,000 1990's house and they are expecting to get tiled floors, marble counters, new cabinets, etc. in a house built in 1982.
I'm not aware of anyone who has just up and updated the interior of their homes.
I think I need to stumble onto some lookers who are first time home owners, maybe they have rented houses or apartments and MY house IS an upgrade compared to what they have been used to, and my house does not look old fashioned to them.
The guy next door hated the house. He bought it due to location.
I'm 12 minutes from downtown Charlotte, 2 miles from the interstate to Charlotte, in an established neighborhood, and in the next state over where taxes, gas prices, etc. are significantly lower.
I'm concerned to list it for my lowest price. I won't have any room to negotiate down. I need a certain $ out of the house after all my cost and discounts, and paying commissions and paying other's cost, or I'll have to just live there and give up other projects or rent it out and let renters ruin it. I've seen dozens of homes that had renters.
So, I got a showing at 195,900.
4 more at 199,900.
How should this sale be approached going forward?
So you said at $195,900 you were priced too high and you knew it. So what's the problem? You are priced too high and you know it. Either you want to sell or you don't.
Unfortunately the market doesn't care what you want out of the house, and neither do buyers. I think you are being unrealistic to think those first time buyers aren't going to see all those other houses and compare. Buyers are exceptionally cautious these days, especially first timers.
Your approach going forward seems pretty clear to me: get your price in line with the market. Anything else is a waste of time.
"How should this sale be approached going forward?" Well, I think that you should have confidence in your Realtor. If you feel they are the expert in your business relationship follow their lead and lower the price. You can't fight the market, you have to roll with it. Your listing agent should have gone over the comps with you, math doesn't lie, if your house should be listed at $185k hen so be it. Because when it comes down to it (as was mentioned before) it's only worth what someone is willing to pay for it. Plus, the buyer's lender will have an appraisor look at the house. A lender won't loan $195k on a $185k house. If you lower the price a whole new group of buyers will come through the house, potentially falling in love with it!
Drop the price to what your agent suggests or as close as you can afford to go and see what happens. If someone puts in an offer for less than what you can afford you simply turn it down. If they really want it and are willing to come up with the difference they'll do it. Buyers won't offer more just because you're listed higher, they'll offer what they feel the home is worth to them and/or what they can afford. If the house is worth less than your bottom line then you're not going to be able to sell it right now.
Case in point, we've received two offers since we listed in March. Both would have gotten us the same net but it was significantly less than we could accept. We explained to the buyer's agents that we were already bringing a lot of money to close and couldn't go that low and they walked. Both potential buyers were looking way out of their price range and were hoping we were desperate. Oh well, it happens.
Since we haven't gotten any good offers, and can't afford to drop the price any more, we're going to wall off our already finished basement as a third bedroom. It should cost us about $200 and will bring us a whole new set of potential buyers. If your house needs updating see what you can do yourself on the cheap. Check out some appliance outlets to replace the old stuff in your kitchen with scratch and dent. We got a $1500 refrigerator for a third of the price because there's a big scratch on one side (which faces the wall) and a small dent on the front door. Do that and voila! you're not so 80's anymore.
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