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I dropped the price by $5K every 2 weeks after the first 3 weeks with tons of showings and no offers. Each drop would bring in more showings until I finally got an offer. Way too low IMO but realistically that's what the market told me.
We were getting a lot of showings but only one actual offer ($ offered was fine, but not able to get loan, so no good). We lowered the price, and . . . nothing. The showings stopped, cold turkey, completely. We lowered it again and have had one showing, which almost produced an offer (buyers decided not to move to this area after all).
We've had five "almost buyers." None backed out because of the price (unless you count the fact that they can't qualify for a loan). We always ask our realtor to get feedback from lookers, and with those who didn't want it, it's always been something else. If it were price, wouldn't someone say so?
If people think a house is too much, then . . .
A. Why do they go look at it to begin with? Wouldn't an overpriced house get fewer showings, not more?
and
B. If lots of people look at the house and like it, chances are someone would at least make a low offer, and that would give the seller a clue.
When we sold our house in CA in 2007, we got a low offer right away, plus a second verbal inquiry about our price. A couple weeks later we negotiated a deal with the first guy. (The second one recognized what the market was about to do, and when we came down, they went down further.)
It's easy for others to say "lower the price" than for the seller to actually do it, but, that may be the solution. If you start dropping the price about $1-2K per week, you will gradually discover where the real 'interest point' and probably 'selling point' is for your home. You will also get the same increased interest with each drop, as if you dropped the price more (Remember, in this buyer's market, you will also likely be expected to drop the price further when the offers start). On the other hand, you aren't there to supervise and motivate ... and you may be running-out of summer/fall selling season - so a larger (more urgent) drop may be in order.
You might think of it as "cutting the dog's tail off an-inch-at-a-time or once! -- [You didn't say if the house was rented, but, it sounds like it is vacant. Renting for a while may be another alternative, but, still, at the end-of-the-day, you will likely have to slash the price to cut your losses]. Yes, cuts are painful, but, that's the market we are in!
My house is under contract BTW. I dropped the price by $5K every 2 weeks after the first 3 weeks with tons of showings and no offers. Each drop would bring in more showings until I finally got an offer. Way too low IMO but realistically that's what the market told me.
You have that right. The market gives constant feedback when sellers are open to listening.
You might think of it as "cutting the dog's tail off an-inch-at-a-time or once! -- [You didn't say if the house was rented, but, it sounds like it is vacant. Renting for a while may be another alternative, but, still, at the end-of-the-day, you will likely have to slash the price to cut your losses]. Yes, cuts are painful, but, that's the market we are in!
The longer a property sits, the greater the difference between the original ask and the final closed sale price. In the long run, the inch at a time is more painful, especially when the property is vacant and there are carrying costs.
My husband and I moved for his job so we listed the house and had to move a month later. It is still on the market (been for 50 days now). It really stinks being out of state and not knowing if there are any showings going on or anything so I emailed our realtor yesterday for an update (we've been moved 2 weeks now).
He says " It's been quiet to say the least, have you thought about a price reduction?"
This would drive me bonkers. Have you considered asking your agent for a weekly conference call, each week until it's sold and closed?
What new competition has come to market since you listed?
What comparable properties have gone under contract and/or closed?
Are broker tours common in your former area? Has your property been put on Broker tour?
While an Open House for the general public can't hurt, it is unlikely going to get your place sold.
Thank you all so much for your input. What exactly am I looking at in terms of comparable properties? Do I want to look at houses with the same number of bath/bed, square footage, garage? Or am I just looking at what houses at our price range have? Let me know that and I ll go look again.
The only feedback we received from the 10 showings was:
1) a few were kind of interested but just started looking
2) lot/yard to small
3) wish there were a 3rd bedroom (there are 2 + a good size office with windows/french doors we used as a nursery- no closet in it)
Yes, I am rather frustrated with what feels like lack of communication on the agents part. But I guess if there is no action he has nothing to tell us, just wish he would still let us know either way.
I did not even think of the "selling season" I'm sure people are less apt to buy during the winter? No, we do not have renters, it is vacant.
I did not realize open houses were usually a waste of time, and I am not sure about brokers tours
We do open houses to meet unrepresented buyers and potential sellers (nosy neighbors are often there looking to see how much the house is worth and therefore how much their house is worth). We also do it to appease the homeowner.
HOWEVER, I had a listing that was very taste specific (lots and lots of oak on the floors, walls, and ceilings - felt like a B&B). It was a wonderful home in good condition, but we weren't getting many agent showings. I held open houses every weekend until someone strolled through and loved it. So it can help just to get traffic moving through - the more people that see it, the more likely to find a buyer.
But if you had lots of showings the first couple weeks and no offers, either something isn't presenting well with the house or your price is too high.
So when looking at the market, I am looking at houses same as mine for pricing correct? 2 bed/1 bath? If so, it does appear that a few of those have recently reduced price (under 80K) and a new one on the market listed at 74K
I do agree it is probably time to drop below 80...at least do 79,900 for a few weeks? Have to talk to the hubby tonight!
So when looking at the market, I am looking at houses same as mine for pricing correct? YES
I do agree it is probably time to drop below 80...
As described in an earlier post in this thread...
sharpen your pencil and come up with YOUR price first.
But yeah, if a new comparable house can be had for $74,000... that IS the market.
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