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Old 10-29-2007, 08:08 PM
 
4 posts, read 12,180 times
Reputation: 10

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My realtor want to lower the price of my home in Northern Virginia by $50K because she now thinks the house is overpriced to the market. We listed the house 90 days ago in July and have had probably 15 showings over that time period. When we originally listed the house she was fine with our asking price of $799K. In fact, we actually had a contract on our house in June that fell through for $785K so we both decided to list it back for $799K.

Well 3 months later my realtor is very doom and gloom about the market. So much so that I'm thinking of finding another because I get depressed when I speak with her. I've told her that during tough times we've got to work harder and try new things, but have seen little of that. I'm concerned she wants to move the property and the $50K means little to her in commissions.

Our mo. carrying costs on the house are $3100 and we can afford to carry it for another 8 months w/o worrying. We've moved to Colorado and the strain of selling our house is wearing on us. I'm looking for some sound advice on what to do. I'm leaning towards loweing the price of the house by $20K and then offering assistance on closing cost.

Any/all advice are welcome from the professional realtors.
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Old 10-29-2007, 08:33 PM
 
Location: Raleigh, North Carolina
306 posts, read 1,076,235 times
Reputation: 240
While it maybe worth your while to get a fresh realtor, all the indications I read is that the market everywhere, especially Northern Virginia is becoming uglier by the week. Plus, with the holiday season approaching, sales tend to be slow anyway.

From my limited understanding, your house is in the price bracket where someone is likely to need approx 350K deposit just to get under the 417K loan limit (to avoid the higher rate jumbo loans). I assume you've made a handsome profit from the property. Maybe just accept a slowing market, and take less than you bargained for. It may save you a lot of stress 8 months down the line.
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Old 10-29-2007, 08:38 PM
 
Location: Richmond, VA
2,310 posts, read 1,811,965 times
Reputation: 971
I am NOT a realtor, but am a buyer in the Northern VA area, and I must say the housing prices are taking a huge slide. (good for me here, bad for me i Philly where I am selling) Where last year we would be stuck in a townhome, now we will be able to get a single. (half a million for a townhome is crazy, now we can spend that on a nice single)
My point it, everything here is sropping in price and if you want to sell, you should probably drop. We looked at a home 4 months ago and it just sold for almost $100K less.
If you can afford to wait, then fine. But, what if in 8 months there is still no bites and then you won't be able to afford to carry it anymore? You may miss out on lots of buyers.
If I were you, I would lower it by at least $30K and offer some help.
Again, not a pro (am working on it) but this is just my opinion on the Northern VA market.
Good luck. I wish you the best.
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Old 10-29-2007, 09:02 PM
 
20,190 posts, read 22,147,062 times
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Honestly, I would agree with your realtor and I still think it is a tough sell. I look at NOVA and for that price, I would rather purchase my own land and build while renting in the meantime. The prices on those homes are grossly overinflated and unfortunately you are selling at the worse time (and its going to get MUCH worse). Homes doubled to tripled in value in a short amount of time for no good reason. Guess what .... it's GOING to correct and everyone knows it. Now there is a sucker born every minute so you might be able to find a buyer but a lot of those suckers are already getting educated by the media. Good luck to you.
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Old 10-29-2007, 09:18 PM
 
Location: Las Vegas
14,220 posts, read 27,788,378 times
Reputation: 27554
I would lower the price. Chances are if you wait 8 months, it will only be worth less. Sorry for you and sorry for me too!
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Old 10-29-2007, 09:51 PM
 
Location: New Mexico
631 posts, read 2,317,937 times
Reputation: 330
Times are changing faster than I can get a grip on!

I sell land and even now I can't tell prospective sellers what to list for when there's not recent comps to go by. I just tell them if they want to sell, just price it as low as they can go. Anything else, it's a crap shoot as to when is a timeline for a sale.

I have a 65K lot that can't sell for 49K right now. Even at 65K it's a fair price for the value.

These are times I've never experienced before.
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Old 10-29-2007, 10:27 PM
 
Location: Palmer
2,519 posts, read 6,430,217 times
Reputation: 1389
You need to price it lower than the competition. As Bob Dylan said, "the times, they are a changin".

And they have changed since 90 days ago. They might change again in the next 90 days and the trend is down, not up.

If you keep it for 8 more months, you may eat up your reserves and have to lower it by $100K to get it sold.

Ask to see all the compls, and then price yours lower than all the comps. It'll sell. You will be done.

Unless you would like to move back in, lower the price. I would keep your realtor, it's not her...it's the price. You really need to see the comps because she may be padding it, hoping to get more for you when you really should lower it by $75K to get it sold. You need to know exactly how a $50k price reduction will position you in the market compared to your competition. You need to be an obviously better deal than the competition.
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Old 10-29-2007, 10:36 PM
 
Location: NJ
2,212 posts, read 6,693,397 times
Reputation: 2190
To be tough. With your carrying costs, if the house does not sell in those 8 months you will be down $24,000 before you even lower your price. If you lower then by your $20k comfort zone, you are already down $44k and still holding the house.

$20k plus closing costs might work, but that is a number pulled out of thin air.

Sit down with your realtor. Have her show you the most recent comps (3 months) for your area. Have her show you the competition in your price range. Have her show you her pricing reasoning. The goal is to sell your home. You need to be at a price that works in this market, and you want to be the best/most attractive house in your price range. Because you have already moved, you can't waste too much time on this house. You may need to be a little ruthless, but better to get the job done that still be asking these questions in 6 months time when you are really under the gun.
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Old 10-29-2007, 10:38 PM
 
Location: Orlando FL
1,065 posts, read 3,923,064 times
Reputation: 425
Quote:
Originally Posted by Marty Van Diest View Post
You need to price it lower than the competition. As Bob Dylan said, "the times, they are a changin".

And they have changed since 90 days ago. They might change again in the next 90 days and the trend is down, not up.

If you keep it for 8 more months, you may eat up your reserves and have to lower it by $100K to get it sold.

Ask to see all the compls, and then price yours lower than all the comps. It'll sell. You will be done.

Unless you would like to move back in, lower the price. I would keep your realtor, it's not her...it's the price. You really need to see the comps because she may be padding it, hoping to get more for you when you really should lower it by $75K to get it sold. You need to know exactly how a $50k price reduction will position you in the market compared to your competition. You need to be an obviously better deal than the competition.
I couldn't of said it better myself.

Get your realtor to show you why she believes 50K will be helpful. If your competition has been lowering their prices then you have to follow suit if you hope to sell. If there are solid reasons for the reduction, applaud your realtor for having the professionalism to tell you the truth and risk you wanting to switch realtors.......
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Old 10-30-2007, 09:09 AM
 
Location: Wouldn't you like to know?
9,115 posts, read 16,548,088 times
Reputation: 3713
15 showings in 3 months and one offer that fell through? I guess the market has spoken....lower your price.

I know you think you have a great house (we all do), but if you only have (and I say only) 8 months, do not fool around. Listen to your realtor...NoVA has way too much inventory..prices will not stabilize for a looong time unfortunatley for sellers..(great for buyers though)...

Hey, if you price it 50K lower and you think its too low, then you should have a bidding war by your logic, right? And 50K is really not that much of a haircut on an 800K house...(6.5% really)

Look at the countless threads of people on here who were a day late and a dollar short lowering their price....don't chase the market, you will end up most likely getting less than being aggressive on the front end.
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