How to deal with Home Selling in Naperville

[cohdane]

Originally Posted by Lookout Kid

You don't have a crystal ball, and neither do I. The most reputable forecast I've seen predicted a bottom to the home market in the thrid quarter of 2009, but who the hell really knows? Price is only one factor. If there are no buyers, there are no buyers. I expect there to be more buyers in a few years once people are less spooked than today. But one thing is clear--right now is a HORRIBLE time to be selling a house. The future could be better or worse--hard to say.

Agreed-- better or worse in the future. I just worry when the kneejerk response is "wait a couple of years" if someone is depending on the market being better by then, they could really be misled.

It might be better. It might be the same. It might be worse.

Don't bank on any of the above. This market is unprecedented and no one can call it.

[tanzall]

Originally Posted by fairmarketvalue

Oh, would I help if I could. We did the SAME EXACT thing, only we contracted in the srpring of '06. We tried to sell in '06 and had it on the market for 9 months. As the new home neared completion, we decided to rent out our existing home, short term, to help with expenses. Without going into detail, the rental experience was a nightmare, and after they moved out in Feb., we did what little updating there was to be done (had already put a complete new kitchen- beautiful I might add) and so forth, was a beautiful R.A. Faganel georgian brick front, cedar sided, blah, blah, blah, and then put it back on the market, empty, right before Spring Break. We had a contract by June, thank goodness, and all went well with the closing. We still believe, whole heartedly, that the lovely family that bought our home got a wonderful home and a good price. We hope they think so. We built just 5 blocks from our old home, stayed in the same area/schools and all, it was/is just a bad market. Try to keep all the "doom", especially what you read on this forum, out of your focus.


I will tell you this; It is NOT always price!! From the first attempt to sell in summer of '06, until the second attempt in Spring of '07, we only lowered our price in $10,000 increments and a total of just $40,000 off the top. It was originally $589,000 and we went down to $549,000. We sold for $540,000. Closed in August. So, so many will tell you it's price and just lower and give the damn thing away. Don't do it, unless you are absolutely desperate. Stay in line with your neighborhood comps, it's what we did, and sooner or later, the right buyer will come along. They're just aren't that many right now. We owned both of our homes simaltaniously for 11 months (both in Wheaton). It wasn't easy but again, worth not giving in to this unrealistic mentality that "all homes are overpriced" and everyone should come down on theirs. It's so frustrating, we know, but homes did and were selling in our area for at least as much as ours and in many cases, much more. Right now there are 3 left in our neighborhood that have been on the market for over a year now. One has lowered their price to $498,900. It's still NOT selling. And it's similar to ours, not quite as big, but still. The neighborhood association was NOT happy when these folks lowered their home price to this extreme, as this is what a foreclosure/short sale would likely go fo at this point. I'm sure the realtor and others just assured them that if they just list below $500,000, they would sell FOR SURE!!! And the other 2 that have also not sold have stayed in the mid 5's and holding. There was a day when homes easily went for over $600,000 in our neighborhood so they are already at a GREAT PRICE!!!!! Buyers are a different breed these days, thinking they will go house hunting and get a "steal of a deal" for a home like yours with all the nice appointments it sounds like it has. Besides the government helping turn things around, those of us that are somewhat financially sound need to help the cause as well, by NOT giving into this attitude and giving our homes away! I think slowly but surely, this message is apparant in the western suburbs of Chicago and Naperville is tough because there is so much inventory to choose from. Hopefully, as I said, the right buyer will come along. Hang in there and I will send all kinds of good wishes your way! I hope you are enjoying your newly built home. We can say that we are and it was worth it. It's just amazing how you can go from a neighborhhod where realtors solicite your home if you should ever want to sell, to NOTHING, but don't automatically assume it's price- chances are it is not and even if you lower, you still wont' sell. Good luck!!!!

P.S. we stayed with the same realtor throughout!! It was not her fault. House showed lots, she advertised all the time, had open houses, etc.... unless your realtor is neglecting your listing, it's not her/his fault. They can't MAKE someone buy your home! As much as you want to get it sold, SO DO THEY!

I understand your frustration. But we live in fairly capitalist society where price is driven by supply and demand. If there are few buyers and several homes, the price goes down. Bottom line, the OP should lower her home price, with some inexpensive staging, to whatever the market will bear. It is irrelevant what the house sold for a few years ago because it's 2009 now. If the OP doesn't want to lower her house price, she may have it for quite some time.

I don't mean to cast stones at your or the OP, but unless you're indenpendently wealthy paying two mortgages is rather ridiculous. "The Bird in the Hand". Frankly, I'll never understand it. This crisis is bad, but a lot of people are hurting because they're living WAY beyond their means. Don't know if this is you or OP so no disrespect intended.

[chet everett]

Studies have shown over and over that real estate agents CONSISTENTLY keep their own home on the market LONGER and are SLOWER to cut their prices than they are to advise their clients to do the same. I say this a real estate agent myself. The reasoning is pretty straightforward: to an OWNER a house is a MAJOR asset, but in the 'agent' capacity real estate agent (typically) only get paid when deals close...

This is an UNPRECEDENTED log jam of unsold inventory and drastic price reductions are not the right solution for MOST sellers. There has to be a restoration of confidence in some kind of price stability before buyers and sellers will work out the excess inventory.

[cohdane]

Originally Posted by chet everett

There has to be a restoration of confidence in some kind of price stability before buyers and sellers will work out the excess inventory.

Agree on this. Lots of buyers want the market to go down. I just want it to stabilize. Right now, it seems like there's no reliable way to know what a home is worth-- not enough comps to go by.

[Moonpies]

Originally Posted by chet everett

Studies have shown over and over that real estate agents CONSISTENTLY keep their own home on the market LONGER and are SLOWER to cut their prices than they are to advise their clients to do the same. I say this a real estate agent myself. The reasoning is pretty straightforward: to an OWNER a house is a MAJOR asset, but in the 'agent' capacity real estate agent (typically) only get paid when deals close...

This is an UNPRECEDENTED log jam of unsold inventory and drastic price reductions are not the right solution for MOST sellers. There has to be a restoration of confidence in some kind of price stability before buyers and sellers will work out the excess inventory.

But doesn't your argument that real estate agents leave their own properties on the market longer without price reductions, and therefore sellers should not take drastic price reductions, ignore the possibility that houses became overpriced? And in some cases, extremely overpriced. And in order to sell in the current market, prices must decline? (although perhaps not by "drastic amounts"). If the OP is assuming anything above a 3% annual price appreciation, then the house is probably overpriced, as are all the other houses in DuPage county that assume a higher than 3-4% annual appreciation.

I've noticed houses selling quickly that are priced aggressively at the outset. When sellers price extremely high and then drop the price by $10K every month, as a buyer, I look at that and think, I'll just wait for this seller to keep dropping the price. BTW - redfin is a great site to see how many times a house has been delisted, relisted, and reduced, etc.

[GolfLover2]

Have you moved everything out of the house? Is it empty without furniture? Maybe trying to stage it somewhat would help make it sell. If you are working with a realtor to sell this, you would have the benefit of the MLS listing (a broader, larger viewing audience), and their expertise for selling. They would also be able to suggest a professional staging service for your home. There is a cost, but versus sitting on the home, it might be worth the expense. Best of luck to you.

[middle-aged mom]

There are almost 1600 units ( single family and condo/townhomes) for sale in Naperville, right now.

[middle-aged mom]

Originally Posted by chet everett

Studies have shown over and over that real estate agents CONSISTENTLY keep their own home on the market LONGER and are SLOWER to cut their prices than they are to advise their clients to do the same. I say this a real estate agent myself. The reasoning is pretty straightforward: to an OWNER a house is a MAJOR asset, but in the 'agent' capacity real estate agent (typically) only get paid when deals close...

I am aware of those studies. They were conducted during peak market conditions, where it made some sense, in some areas, to be aggressive with price and wait for the market to match it.

I am also aware of many agents who continue to employ this tactic, in this market, and their own homes have been sitting on the market for 2+ years.