End of listing contract...now what? (sale, comparables, properties, value)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Coup, you're probably right - but we need more details, perhaps in that neighborhood and price range there is 12 months of inventory. The OP said it was priced correctly, but I'd like to know the agent's opinion. One showing in 6 months is disgraceful. I tell my clients that we need 3-5 showings in the first 2 weeks or we have problems. Like I said earlier, I would not want the listing if it wasn't going to sell - what's the point? That agent has hundreds of dollars and lots of man hours lost at this point. There's obviously a problem.
I agree . . . I would be interested to know what the agent would say at contract renewal time . . .
I personally would ask for a meeting to discuss w/ the agent what he feels has not worked w/ the listing. I would want to know . . . should we do a home staging? Are there maintenance issues w/ the house that are turning off buyers? Do the website pictures need re-doing b/c they make the house look cluttered or crowded or in need of an update?
IMHO, if showings are not being booked, one must really examine the website as most potential buyers are eliminating houses right off the Net - so if the pictures are lousy (or house is staged poorly for the pictures) - buyers move on - when the market has plenty of other homes in the same price range.
So I would see what the agent would recommend . . . b/f I would toss him to the curb. Then, if it sounds like "more of the same" - just don't sign the contract and move on . . . and find the agent whose listings ARE moving. That agent must be doing something right . . . and I bet it has to do w/ how the house is being marketed as well as how it is being priced.
I should clarify that it has been 1 showing in about 75 days and it's a 90 day contract. Our relo company insists on 90 day contracts, but lets us choose the realtor.
Ah, it's relocation. That changes things quite a bit. Some agents and buyers shy away from these homes because of the additional paperwork and many buyers assume that you're getting a buyout and will wait until you move out and the relocation company lowers the price. I just had one of these, the owners took a buyout and the house went under contract for $11,000 less than that buyout in 48 hours - but the company knew that to drag on for months and months in a depreciating market didn't make sense so they cut their losses.
What made you choose this agent over the other(s) you interviewed? You might want to call those you didn't hire and get their perspective on how the listing is going, you know they are watching it. As long as you initiate the contact, it's within the REALTOR Code of Ethics to respond.
In many markets a 90 day old listing price (based on 90-180 day old comps) is NO LONGER VALID.
IMO there's only ONE REASON a ppty does not sell, PRICE.
It may be price based on location,
It may be price based on neighborhood conditions/politics,
It may be price based on rising or falling markets,
but it's PRICE.
Don't believe me, price your house at ONE DOLLAR. See how many showings/offers you'll receive. If you get lots of showings/offers when your price is one dollar and one/none at your current asking price it shows that your current price is too high.
It's likely that one dollar is too low so price it in between the two.
I'm up against the same thing right now. My listing agreement expires in 3 weeks and when it does I'll slash my price, I'll also FSBO it as that's how I've sold my last 15 homes.
So, my listing contract is going to expire in a couple of weeks and I'm not sure if I should stick with my current realtor and sign again OR try someone new. My current realtor has been a good communicator and done several Open Houses, ads in the paper, etc. We have a good working relationship, no personality problems, etc. BUT, and this is the key, we have had one showing. Yup, one showing. I'm very aware of the market problems and that the average days on market for my town is 165. We're not quite there yet. I know our price is good...we did a thorough market analysis before listing and are even slightly below FMV.
Would you try someone new or stick with the current guy for another try?
I think you should interview some new people. Regardless of relationship, if she had some trick up her sleeve to sell the home she would have used it already. What will she do differently that she hasn't already done to sell the home? If you interview 3 agents and don't find a better agent then stick with her.
In many markets a 90 day old listing price (based on 90-180 day old comps) is NO LONGER VALID.
IMO there's only ONE REASON a ppty does not sell, PRICE.
It may be price based on location,
It may be price based on neighborhood conditions/politics,
It may be price based on rising or falling markets,
but it's PRICE.
Don't believe me, price your house at ONE DOLLAR. See how many showings/offers you'll receive. If you get lots of showings/offers when your price is one dollar and one/none at your current asking price it shows that your current price is too high.
It's likely that one dollar is too low so price it in between the two.
I'm up against the same thing right now. My listing agreement expires in 3 weeks and when it does I'll slash my price, I'll also FSBO it as that's how I've sold my last 15 homes.
Good luck
golfgod
It's not always price. Condition/ Terms/ Marketing/ Location are just as important as they ever were (especially condition). There are more choices so the ones in the best condition will sell first as long as they competitively priced (doesn't mean underpriced).
It's not always price. Condition/ Terms/ Marketing/ Location are just as important as they ever were (especially condition). There are more choices so the ones in the best condition will sell first as long as they competitively priced (doesn't mean underpriced).
The "price thing" is always so controversial. Is it always price or isn't it. . . I agree that location is part of that formula. It has been over 20 years since I used my broker's license, but back then price was just sort of a given, LOL. It was all location, location, location. The price was no mystery - everyone seemed to look at price per sq. ft . . . and standards in the community . . . and price pretty much fell in line (w/ upgrades and add-ons, of course, being part of the equation that equaled "price.") But location was everything. I guess that was b/f suburban sprawl added so many choices and prime properties were not being "generated" - they already existed and people were willing to vie for them and pay top dollar to get in to THE ONE area of any city, LOL. Things sure have changed.
But I don't think things have changed so much that even w/ all things being equal . . . that it just comes down to PRICE. Even in the same neighborhood, intrinsic value comes into play when someone is making a decision on "which house." The corner house may be an aggravation to one person but an advantage (2 quite accessible entrances) to another person.
Just dropping the price on a house is still not going to make it appeal to a buyer who finds something objectionable about the house, such as its placement in the neighborhood . . . the landscaping . . . the style . . .
So I just do not agree that price is everything. Just b/c the house down the street is nearly identical to mine and is priced $25,000 less, it doesn't mean the buyer is going to fall in love w/ that house. When you look at how little difference (on a monthly payment) it makes on a 30 year loan - the price difference - you may just think . . . you know . . . I can walk right into this house and even tho the other is $25,000 less . . . I will have to paint half the rooms cause I dont like the color . . . will have to change out window treatments . . . whatever.
I just don't think dropping the price is always the answer!
Last edited by brokensky; 03-08-2008 at 11:43 AM..
Reason: misspell
Thanks to all for the feedback. I have a little while to think it over. I'm leaning towards going with someone new. Fresh perspective, new ideas, new contacts...seems like it could only help.
I definitely agree, your price might have been right on 75 days ago but it may be too high right now. It really depends on your area and your market. Ask your current agent about the absorption rate for home in your price range. Also, it's good to know the competition. Spend a day looking at homes in your price range that you are competing against.
Well if her contract is going to be up, she's wasted time w/him for what? 6 Months?
I mean c'mon ...I know you guys like to protect your own, but c'mon....
By advocating sticking w/this loser you guys are HURTING her more than helping her chances to sell.
If this guy (realtor) needs advice at this point, its a lost cause.
Move on and get your house SOLD.
Just my blunt .02
To make a blanket statement that someone needs to get rid of their realtor and lower their price every time someone states a problem is absolutely irresponsible advice in my opinion.
There is not sufficient information in the OP post to warrant that advice. You know as well as we know that the realtors on here are quick to criticize realtors who do a bad job. We are not quick to criticize someone when we don't have sufficient information.
We do not know the the location, the area, the community, the comps, the prices, or anything about this situation. We do not know the condition of the property, or how it's being marketed. We do not know how many showings other similar properties are having.
We do know that the average days on market there is 165, (5.5 months) which is very high, and could be a good indication of why there are few showings. The OP states that the pricing is correct, and that she is happy with the realtor because the realtor has apparently been communicating and on top of the situation.
So let's not sit in judgment until all the facts are known. Price is not always the guiding factor, as you seem to believe. There are other factors involved.
As I pointed out to you in a home in this area, it was priced far below the competition; far below market value; and it does not sell because of having a small back yard, with yard facing west, backing up to a major thoroughfare (which is a security concern in this retirement community) and the floor plan of the home is not as desirable as two others of the same model in the community. Plus there are so many homes to choose from, that lowering the price to 25% of the market may not sell that home, until the inventory is reduced.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The price was no mystery - everyone seemed to look at price per sq. ft . . . and standards in the community . . . and price pretty much fell in line (w/ upgrades and add-ons, of course, being part of the equation that equaled "price.") But location was everything. I guess that was b/f suburban sprawl added so many choices and prime properties were not being "generated" - they already existed and people were willing to vie for them and pay top dollar to get in to THE ONE area of any city, LOL. Things sure have changed.
