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You cannot sell your house because it is overpriced. In a fiercely competitive, rapidly depreciating market, the only way to "get out" is to understand that the sale-prices of yesterday are gone and you're going to have to adjust your asking price, possibly taking a loss, in order to move the thing. Welcome to the world of limited liquidity. Everyone thought it was impossible with real estate since "real estate always goes up!!"... and now, because of that delusional mentality, here we are.
Hate to be the bearer of bad news, but it sounds like you're suffering from "yesterdays market syndrome" in a depreciating market climate. Some people are so terrified of leaving a single dollar on the table that they wait for market cycles to start on a downward trend before selling, then scratch their heads and wonder why they cannot sell their house for the same price they could've got 2 years ago, when market conditions were different... and if you keep waiting, stubbornly refusing to adjust your price to reflect real-time, current market conditions, things *could* get even worse.
Pay no mind to the people who say that the reason your house isn't selling is because of counter-tops or the arrangement of coffee tables. While little things like curb appeal and interior arrangements might make for good TV show premises on HGTV, in the real world, those things are substantially overvalued. Houses are a commodity product with fairly finite pricing structures.
The reason your house isn't selling is because there are competing houses in your area that offer more for less money.
This means, if you really want to sell your house, you're going to have to completely disregard what it "could've sold for in 2005" and price it in accordance with what it is likely to sell for today. In short, a competitive price that will place it near the very bottom pricing tier for honestly comparable houses.
You cannot sell your house because it is overpriced. In a fiercely competitive, rapidly depreciating market, the only way to "get out" is to understand that the prices of yore are gone and you're going to have to adjust your ask, possibly taking a loss, in order to move it. Welcome to the world of limited liquidity. Everyone thought it was impossible with real estate since "real estate always goes up!!"... and now, because of that delusional mentality, here we are.
Hate to be the bearer of bad news, but it sounds like you're suffering from "yesterdays market syndrome" in a depreciating market climate.
Pay no mind to the people who say that the reason your house isn't selling is because of counter-tops or the arrangement of coffee tables.
The reason your house isn't selling is because there are competing houses in your area that offer more for less money.
This means, if you really want to sell your house, you're going to have to completely disregard what it "could've sold for in 2005" and price it in accordance with what it is likely to sell for today. This means a competitive price that will place it near the very bottom pricing tier for honestly comparable houses.
If a realtor gave her the incorrect range when it came on the market, its the realtors' fault. They are paid to get the house sold for as much money as possible. If they didn't know or see a decline that was coming since '05 in most markets then shame on that realtor. The "market" is not at fault, that's ludicrous.
San Antonio is a tough location to sell in these days, given the huge for sale inventory that exists. We are looking at a possible relo down there, and if we do take the plunge will probably rent instead of buy. We would only be in the area for 5-7 years, and though we find the prices to be stunningly low compared to the Philadelphia area, our "bargain" today can wind up as someone else's bargain when we sell. Given the number of rentals available, also at a "cheap" price, there is no motivation for us to take on the risk. TX real estate has tended to have issues compared to other parts of the states.
There is really only one way to encourage someone to take on that risk...lower the price. Properties don't sell because they are not appropriately priced, be it for the market or for the location/condition.
Are people viewing the home? Does your Realtor have showings? Is she following up with those who come through?
3 Realtors is one heck of a turnover. I would start looking at the property and pricing rather than search out a 4th. While poor Realtors certainly exist, it's not likely that you would have run into so many.
If a realtor gave her the incorrect range when it came on the market, its the realtors' fault. They are paid to get the house sold for as much money as possible. If they didn't know or see a decline that was coming since '05 in most markets then shame on that realtor. The "market" is not at fault, that's ludicrous.
The "market" is the key component of pricing for a huge number of people who bought houses in 2002-2005, given that a lot of them (local market depending) may have to take a loss, but have yet to come to grips with this unfortunate fact, since the whole "real estate never loses value" mentality has about 30 years of momentum behind it and economically unsophisticated people are only now beginning to comprehend this.
The realtor is at fault if they are pricing the house too high, however, the imperative is on the buyer to communicate to the realtor the time frame in which they want to sell- if they want it sold fast, then a pricing adjustment is the only way.
You cannot sell your house because it is overpriced. In a fiercely competitive, rapidly depreciating market, the only way to "get out" is to understand that the sale-prices of yesterday are gone and you're going to have to adjust your asking price, possibly taking a loss, in order to move the thing. Welcome to the world of limited liquidity. Everyone thought it was impossible with real estate since "real estate always goes up!!"... and now, because of that delusional mentality, here we are.
Hate to be the bearer of bad news, but it sounds like you're suffering from "yesterdays market syndrome" in a depreciating market climate. Some people are so terrified of leaving a single dollar on the table that they wait for market cycles to start on a downward trend before selling, then scratch their heads and wonder why they cannot sell their house for the same price they could've got 2 years ago, when market conditions were different... and if you keep waiting, stubbornly refusing to adjust your price to reflect real-time, current market conditions, things *could* get even worse.
Pay no mind to the people who say that the reason your house isn't selling is because of counter-tops or the arrangement of coffee tables. While little things like curb appeal and interior arrangements might make for good TV show premises on HGTV, in the real world, those things are substantially overvalued. Houses are a commodity product with fairly finite pricing structures.
The reason your house isn't selling is because there are competing houses in your area that offer more for less money.
This means, if you really want to sell your house, you're going to have to completely disregard what it "could've sold for in 2005" and price it in accordance with what it is likely to sell for today. In short, a competitive price that will place it near the very bottom pricing tier for honestly comparable houses.
I must respectfully disagree - in part - w/ your post. First of all, yes, a house must be competitively priced, especially in a competitive market. However, to dismiss "staging" of a home - as well as upgrading such things as faucets, light fixtures, trimwork, paint, flooring, etc - is simply bad advice.
I own a marketing firm and research definitely demonstrates that when a buyer goes online and surfs for potential houses to view . . . the pictures themselves will turn the buyer on or off . . . and the reaction is within less than 10 seconds.
My point? The buyer puts in search criteria so the houses that show up are all in the same price range and have about the same number of bedrooms - and in many cases, the selection will be sorted based on sq. footage of home. So the buyer will be doing his/her own comparative analysis thru/ use of the computer. If a house is priced w/in a desired range - there it will be to view.
So yes, pricing is important. For example, a seller can knock himself OUT of the online surfing pool by pricing the home too LOW. If buyers are looking in the range of $300-335,000 and the seller has been advised to lower the price of the house . . . and sets it at $297,000 . . . well, uh, big mistake. No, huge, possibly insurmountable mistake!!!!!
The world has changed w/ the advent of online property searches. People won't even take the time to drive by your home if they eliminate it through online viewing. Let me re-state that: The mission is to get people into your home. If they are turned off by the website marketing, THEY WILL NOT COME. You can't sell your house if you HAVE NO POTENTIAL BUYERS coming through. Plain and simple.
Your house speaks to others from that website page. Do everything possible to upgrade and stage your home so it is competitive - or what about this? Make it an even "better buy" than the competition in the neighborhood. Other houses nearby are about the same price as yours? THat doesn't mean you have to lower the price! It just means - give the buyer more bang for the buck. Give him some eye candy and as well as some substance . . .
Such techniques as offering an "allowance" are not working so well these days . . . b/c desperate sellers are willing to lower the price or take a low offer . . . so why would a buyer agree to an "allowance" on a house that needs significant upgrades when they can go two blocks over and get about the same house, for about the same price, in move-in condition w/ updates???
Think about it. The key to selling real estate in a tough, competitive market is to give your home an EDGE. This is two-fold - give the house an edge online by presenting the best pictures possible and, secondly, give your home an edge by making it more appealing than other comparable homes in the same price range and similar location.
Oh - and please forgive me if this sounds cynical, but never forget: Your realtor does not make any money unless that house sells. One of their strategies is to lower the price. Lowering the price of your house by $25,000 may be a big hit to you, but it won't be but a few dollars' loss to your realtor. Believe me, he or she will quickly advise you to lower the price and offer incentives . . . in hopes they can unload the house and get their commission check. Sorry if anyone finds that offensive; it is just Lesson 101 in Real Estate Sales for Home Owners.
Last edited by brokensky; 01-27-2008 at 09:11 AM..
Reason: left out word
I believe the house shows very well in the pictures. Yes, it's a bit dated, but that's most likely to come into play if your main competition is new homes with a staged model. It sounds like your primary competition is other homes in your development. Are any of these homes selling? If so, do they have any major advantages over yours -- recently renovated kitchens or baths, etc.? If not, how do they compare to yours (objectively speaking). If the other homes in your subdivision look significantly newer or "hipper" than yours, perhaps more staging is the answer, but your home actually shows very well in comparison to most homes you see online.
I have no idea about your market or how you determined your price and what your financial situation is in relation to your house. But just bear in mind that a house priced at exactly $300k will get more traffic than a house priced a bit above or a bit below. This is because so many consumers these days are searching internet portals like Realtor.com for homes and these web sites force you to narrow your search based on pre-defined price points. Therefore, people who are looking for homes from $275k - $300k will not see your home. Likewise, if you drop the price and don't put it at exactly $300k (say you drop it to $299,900) then people looking from $300k - $325k won't see it. Being exactly on the number of major price points allows you to get traffic from the widest number of potential buyers.
Whether or not a price change is appropriate for you, I have no idea. But it's something to bear in mind if at a future point in time you decide to make a change.
I agree with anifani. Buyers have so much information at thier fingertips, that they are making snap decisions about homes online based on virtual tours and photos. I agree that pricing for the search engines is also really important. I think we are going to see less of pricing at $299,000 and more $300,000 listings as agents clue into the pricing breakdowns on search engines.
With so much inventory people want homes ready to go. Staging, and updating are Crucial to selling a home in this market. They just don't even come in when it looks dated on the MLS. Forget print media. Your online advertising has to look spectacular.
Hi Millie, I know your frustration. Your house is beautiful. I have had my house on since last April and only have had 10 showings in all that time. Get alot of good feedback but people want to low ball me $30,000 less than I need to get. Its just a tough market and i swear if you sell your lucky!! I think it will take a miracle for me to sell my house. Thats the way im feeling right about now. Trying to keep it clean with 2 dogs and a 3 year old is wearing me down!! Mindy
I know that neighborhood well and just looked at comps. You've got a little competition, but not a ton. There have been 4 solds in there in the last 6 months, so it's a little slow. Not too bad though.
There are two things that stand out to me about that area and your house. Yours is just over 20 years old. Not bad, especially because of the builder. I have a 25 year old Sitterle and they hold up very well. Great homes. However, the other homes for sale in there are about 12-14 years. Not a big age difference, but the style looks completely different. Most of those are brick/rock fronts and look much newer just because of the style.
Your pool is great, but they all have pools, so it doesn't give you an advantage. The other thing that stands out is your interior. It's not updated. The others in there have either granite or corian. Maybe one with tile for the counters. Most have tile or wood floors through most of the home. They just appear to be a lot more updated. Because the prices are pretty similar (yours is slightly lower), the buyers that look at your home are going to look at the other homes in there too. When you compare yours to theirs, they're going to remember the more updated homes.
Personally, based on the sales, I think everyone in there is a little overpriced. Not drastically, but in a slightly slower market, overpricing can really make a huge difference. Your area is wonderful. The neighborhood has always been very popular and always will be, but you have to get it updated a bit more.
Ask your Realtor to take you around to the others in the neighborhood so you can see them and what you're up against. All goes back to "The Art of War". You have to know your adversary.
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Not entirely correct
