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Is price the only way to compete against new construction in a close neighborhood to ours? We've had a couple of people go through our home where we've come second to building a new home in a neighboring area. The houses are built by the same builders but the other neighborhood has pools, walking paths etc. We and our realtor feel that we are priced very competitively and reflect the neighborhood differences in our price. Our house is priced at $500K (MLS# 98344070) compared to the exact same home (MLS# 98322086) in the other neighborhood that is $529.9K. I've talked to our realtor about including a family pass to the water park that is 1 mile away but am just at a loss on how to compete with new homes.
Any ideas and suggestions are greatly appreciated. BTW...these neighborhoods are probably 1 mile apart.
Offer the same or similar incentives as the builders such as paying for closing or agent or buyer bonuses. Some out of the box incentives you can offer: make HOA payments for 6 months, pay the first 6 months mortgage payments, pay for a 1 year membership to a golf club or rec center, offer a personal chef, child care services, or to pay for moving.
Buyers need things that make their lives easier. A seller who presents himself as being concerned about the buyers needs will be very attractive as buying a home is just as stressful as selling. Whatever you decide to offer, make sure your agent advertises the incentives heavily.
One advantage you may have that you should highlight is the fact that your house is READY and you can close quickly (if you in fact can). Make sure your home is in tip-top shape/like-new...and accentuate the positives of your home vs. the new construction.
Offering to pay HOA dues or a year's membership to a pool are great ideas. Pay attention to what the builder is offering and see if you can offer the same.
I looked at both listings, online. The online presentation of your home is superior. Your kitchen looks fabulous and your agent is focusing on all the right bells and whistles. It's got that " better than new" feel to it.
Don't look at other list prices but at actually COMPS. List prices are worthless.. you want to know what price someone paid for a similar house in your neighborhood a month ago. Find that price and discount 15% and that may help a lot in getting it sold! Don't be stingy with the discounts otherwise your house will be languising on the market just like the thousands of others just sitting there.
If you think it's challenging competing with new construction, just wait till all the REOs come onto the market in the summer, prices will plummet! When banks start cutting prices to get rid of inventory you will have a hard time competing with them.
Middle-aged mom, our house has been on the market since mid-Sept.
k374, Our house is in absolute tip-top shape and has many upgrades. I'm sure that it would sell dropping it 15% but that would be 75K. That's a lot of mortgage payments and I don't think that we are ready to go there yet.
I'm going to have our realtor run comps again and see what list vs. sold price was. I'm also going to have her look into what the builder incentives are.
Middle-aged mom, our house has been on the market since mid-Sept.
k374, Our house is in absolute tip-top shape and has many upgrades. I'm sure that it would sell dropping it 15% but that would be 75K. That's a lot of mortgage payments and I don't think that we are ready to go there yet.
I'm going to have our realtor run comps again and see what list vs. sold price was. I'm also going to have her look into what the builder incentives are.
For what this is worth . . . and that may be nothing . . . I never buy a new home. I much prefer mature landscaping, for one thing. If you have done upgrades to your landscaping . . . that is a huge attraction for many people. So not everyone wants a new home.
I think incentives are a nice idea . . . as long as you don't overdo it and make the buyer feel like - hmmmm - why are they offering all this? What is wrong w/ the house? That can strategy can backfire! Keeping it in line w/ what the builders are doing would probably be fine.
There is no need to reduce your listing price under the comps for your area. Do not be frightened by this slow market. If prices are falling, you will need to stay abreast of that, but don't assume you are going to have to "give away" your house.
There is no need to reduce your listing price under the comps for your area. Do not be frightened by this slow market. If prices are falling, you will need to stay abreast of that, but don't assume you are going to have to "give away" your house.
Anifani, I disagree. I believe if you want to sell in this market, you need to be under comps (or ahead of the curve). Many potential sellers homes are sitting longer and longer because they were priced "at comps". Not good.
Some might think selling your home say 10% under "comps" is giving away your home, but I don't think so...not in today's market.
Anifani, I disagree. I believe if you want to sell in this market, you need to be under comps (or ahead of the curve). Many potential sellers homes are sitting longer and longer because they were priced "at comps". Not good.
Some might think selling your home say 10% under "comps" is giving away your home, but I don't think so...not in today's market.
Hmmmm. Jack, I do respect your opinion and perhaps you have suggested a better strategy, based on a difficult situation w/ falling prices . . .
Staying ahead of the curve . . . I suspect you are right on target . . .
It just seems so dismal to think about knocking 10% off when we are talking about a home in the $500,000 range . . .that is just a heckuva lot of money . . . but if that is what it takes . . .
Hmmmm. Jack, I do respect your opinion and perhaps you have suggested a better strategy, based on a difficult situation w/ falling prices . . .
Staying ahead of the curve . . . I suspect you are right on target . . .
It just seems so dismal to think about knocking 10% off when we are talking about a home in the $500,000 range . . .that is just a heckuva lot of money . . . but if that is what it takes . . .
Anifani, the poster said "she was not ready to goto 75K below where they are now". Well, she's been on the market since Mid-september and nothing is working.
My point is you need to get to (or close to the point) where "youre not ready to go". If she (ID from TX) waits and waits for that "miracle" buyer at this price point, it probably ain't gonna happen.
Most people who get aggressive in the beginning usually sell for MORE than those who drop in drips and drabs....I'm sure someone can access studies that have been done about this.
Hey, if she drops 10%, the market will tell her one of three things (1. She's still overpriced. 2. She's right on the money or 3. She's underpriced, which then there will be MULTIPLE offers for her home.)
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