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Home seller agreed price reductions, buyer’s agents interest, prospective sellers, priced right listings, stimulate home sale, real estate agency, lower prices, stimulate home sale
If I were to do it all over again. I will force the broker to spell out in the listing contact how they will market my home. That listing contract is way too vague! This is good stuff.
I will pay for my own appraisal to have a non bias opinion of what my property is worth and I will price accordingly. An appriasal is one person's opinion of the worth of a home at a specific period in time. No two appraisals are ever the same and bottomlines can and do vary. The next area sale, new listing or price change makes the appraisal obsolete.
Any price reduction will be reflected towards closing costs as an incentive to potential buyers. Price reduction IMO hurts a house for sale instead of improving the sale. Plus it makes the Seller look desperate which IMO is NOT where you want to be. It all depends. There is no right or wrong approach. Very recent area comps/trends are the facts, not what we paid or need out of a sale. A longer term owner or one that HAS to move may or may not be willing to lower their price to achieve their goal.
Let's all hope that by the time you move again, that it's easier for you. ( Oooops- there's that easy word again. )
Appraisals can come out totally different depending on who does them. I just had two appraisals done on a listing with a week of each other. One came out at $1.6 - 1.8 Million and the other came out at $2 - 2.4 Million.
Just get several agents to give you pricing. An appriasal can help, but it is not the definite answer that you are looking for.
A price reduction on a house can actually be very attractive to a buyer. Shows that the seller is a realistic seller in this market and indicates a willingness to negotiate. Also makes buyers feel like they are getting a 'deal'. I have noticed a new tactic around here which is to list a house high for a day or two and then reduce it to its 'real' price. It's not sophisticated, and a very well educated buyer would not fall for it, but most buyers think that they are getting a deal and are happy.
We often find that showings spike a little after a price reduction. That means that more people are attracted in after a reduction. This means that reductions can work to increase traffic.
I am a buyer myself, and look over the price adjustment category very carefully every day.
Spot on about the appraisals. I too see the similar strategies in my area.....it's priced at some la-la # and then quickly gets right priced creating a potential perception of value. Sometimes it works. Sometimes not.
Contributing toward closing costs is meaningless at your price point. It's all about the bottomline and maybe, just maybe, a rate buy down.
Spot on about the appraisals. I too see the similar strategies in my area.....it's priced at some la-la # and then quickly gets right priced creating a potential perception of value. Sometimes it works. Sometimes not.
Contributing toward closing costs is meaningless at your price point. It's all about the bottomline and maybe, just maybe, a rate buy down.
Exactly. I've had two failed offers on it so far, and both were cash deals. It's all about the bottom line - price.
Of interest there are 3 recent post of sellers who have had the same situation of our wanting to give money towards closing/down payment and we've either dropped the price or it didn't get marketed to reflect what we were willing to do. I TOTALLY agree that dropping the price DOES show desperation on the part of the seller ESPECIALLY if their home was initially priced at or below comps. I dropped 12k 30 days after listing and now I wish I never did. Realtors keep insisting that if your home is not selling it is the price ---- I'm not sure if that is so true in this market. Prices did not inflate in my market so I'm not quite sure why I am needing to compensate for the markets that were/are inflated. Very frustrating indeed!!!
I think one of the saddest parts of this housing deal is that it is indeed impacting areas of the U.S. that did not have a tremendous run up in prices and this is just one of the factors that none of us can control.
A house may initially be priced at or slightly below area comps and still not sell. The few buyers, if any, that bought something in the area may have preferred another home. Heck, it sometimes comes down to the color of the siding or trim or interior paint. It's not personal except to the guy who does not get chosen.
In most cases, one has to be the best overall value, as perceived by thebuyer, to get sold. There are long term owners and people desperate to move who can and do undercut the competition and impact the value of area homes.
I know of sellers in a specific sub division who agreed that they were not going to give away their homes. They agreed to hold the line on pricing. Buyers bought in other sub divisions and eventually the seller most motivated to sell, did what was necessary and got sold.
It is very frustrating to be dependent upon factors we cannot control. So the only thing we can do, is control what we can, our reaction.
Agree about marketing. Several houses in my neighborhood were listed after mine and closed weeks ago. The strategy used was list below comps, get multiple offers, and drive up theprice. This worked for 3 houses. I don't know why my agent didn't follow the leader. She said that strategy is risky. Well, I'm still waiting. I'll probably end up with a lower price than if we took the chance months ago
In most areas, owners have to decide if they want their price or want to get sold. By price, I mean net proceeds which may or may not include buyer assistance, in terms of covering closing costs, rate buydowns or whatever.
Area comps tell only a part of the story. No one knows what kind of credits were eventually agreed upon for repairs, replacements, closing costs , rate buy downs, owner financing and on and on.
And funny thing is, most sellers don't broadcast this kind of information to their neighbors.
If you are indeed motivated to move, I have no doubt that you will, at some point in time, take the bull by the horn and do whatever you need to do to get sold.
I actually think the buyer found my house from an open house ad I put on craigslist. Of course my agent wouldn't tell me how they found my open house even though I asked her to ask them.
Does it matter how they find it?
I used to post on craigslists regularly and did my own fliers.
In this market, with so much inventory, sellers have to do what ever they can to sell the house if they want it sold.
Does it matter how they find it?
I used to post on craigslists regularly and did my own fliers.
In this market, with so much inventory, sellers have to do what ever they can to sell the house if they want it sold.
I think it makes a difference when you hire a company that is going to make thousand of dollars off of you and yet you are doing their work for them.
Believe it or not, I actually almost showed my house as much as my agent did. By this time, she not only was a realtor, she also had a full time job AND worked for my company part-time. I sure would like some of my advertisers to hire me and I'll let them market their business .... and they'll pay me thousands of dallors just the same.
Ya STUPID ME! What was I thinking hiring her (my so called friend).
And I repeat, NOT ALL REALTORS ARE LIKE THE 2 I HAD ..... but it is a business that is KNOWN for unscrupulous people. And a HOME is too big of an asset for people to mess with.
I think it makes a difference when you hire a company that is going to make thousand of dollars off of you and yet you are doing their work for them.
Believe it or not, I actually almost showed my house as much as my agent did. By this time, she not only was a realtor, she also had a full time job AND worked for my company part-time. I sure would like some of my advertisers to hire me and I'll let them market their business .... and they'll pay me thousands of dallors just the same.
Ya STUPID ME! What was I thinking hiring her (my so called friend).
And I repeat, NOT ALL REALTORS ARE LIKE THE 2 I HAD ..... but it is a business that is KNOWN for unscrupulous people. And a HOME is too big of an asset for people to mess with.
Just my experience and opinion.
Angel, I go to a few real estate boards, I don't know of many sellers that don't have top do the extras to sell.
Do you mind saying what state you are in? How is your market? We were on for 9 months before we sold, as I've said, we were lucky, our competition is still listed and they haven't lowered their price.
Angel, I go to a few real estate boards, I don't know of many sellers that don't have top do the extras to sell.
Do you mind saying what state you are in? How is your market? We were on for 9 months before we sold, as I've said, we were lucky, our competition is still listed and they haven't lowered their price.
I am sorry but I honestly do not know what you mean to say here. I realize there must be a typo somewhere but not finding it???
I don't know of many sellers that don't have top do the extras to sell.
Anyway, I don't want to say where I am from because some of the posters think I am horrible for posting actual emails from my realtor ... even though I ONLY used our first names. I didn't think that would be much of an issue since I have never said where I live. Geeezzz, imagine how many people named Rose and Angela in the US. I didn't think using our first name would be such a big deal. Do you think it would be alright if I say the "Northeast" or is that closing the odds of how many Rose's and Angela's there are and people might figure it out. Gee, I think I might actually be getting back my sense of humor!
I'm getting kind of baffled as well, got a call from my agent telling me I should hurry up and pay for an appraisal (3rd time asking) because some of his clients did that and then dropped their price by 40-50k. We've always been below comps and least expensive in our neighborhood that ranges from 400k to 900k. I tried to explain to him that I felt an appraisal is one persons opinion and good for the week it's written depending on what else sells and the only response was "well it's good to have it on a table when people come to see the house. Maybe IF WE WERE GETTING ANY SHOWINGS, HELLOOOO... I know we're in a glut in this price range, I've done 30k in drops and made clear that I'll not give this place away.
Don't get the push for an appraisal like they're the gods of pricing or something...
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Do you think it would be alright if I say the "Northeast" or is that closing the odds of how many Rose's and Angela's there are and people might figure it out. 
