How do I compete? (countertop, agent, commissions, mortgage)

[lovingville]

This is my situation. I am in a neighborhood that is only 3 years old. However, up the road the same builder has a new neighborhood going in. My house has been on the market for 1 1/2 months with no showings. My realtor says that most homes being sold in my area are coming from the new neighborhood. They have heavily discounted their new homes because of too much inventory and are offering realtors additional money on top of their commissions. I am now looking to possibly rent out my house but does anyone have any advice on getting people to look at it. I would prefer not to be a landlord. By the way, the new neighborhood up the street will be attending a brand new elementary school this fall.

[garth]

With all things being equal, like sq ft or location, there's an old saying: "Price cures all defects." In your case, the house is pretty new, but it doesn't have the virginal aspect of brand spankin' new construction. You're competing against those houses for people who prefer new construction, like you did when you bought your house.

Additionally, there's more to that new construction than the reported price. There's also soft money items like upgrades, yard/landscaping improvements, closing costs, mortgage buydowns, HOA fee prepayments and warranties. All of these things might go into a purchase contract but not show up in the final comparable sale number.

Simply, you're in a classic situation. You're selling a used house in a new market area.

Sorry for the this post, but that's my take on your situation. The resolution is to make your house more attractive. How can you do that? You can start with spit and polish on every physical aspect of your home, but that will not get the people in your door and keep them there once they see their other options. That has to be accomlished with your price and perhaps other benefits that affect the bottom line for the buyers.

Personally, I wouldn't offer more than the standing agent commission for your area, but I certainly wouldn't offer less in this market. I don't think higher than standard commissions are overly effective, excpet for the very few agents who have compromised ethical standards (i.e., steering clinets into higher commission properties). Instead, take the extra commission percentage you might have considered and apply it to a lower house price or towards a buyers closing costs.

Again, sorry for the post but that's my take if your property does not have anything particularly defective about it that the others don't have (i.e., train tracks behind it). Even in that case, "Price cures all defects."

Good luck.

[Sandy Nelson]

Lovingville,

Besides the valid points that Garth already presented, I would add that you should make sure you have substantial signage that points from the new-construction neighborhood to your house. Make sure there is a never-ending supply of quality flyers in the flyer box out front and make it really easy for your house to be shown. On weekends, when most people visit the model homes of new-construction neighborhoods, have your agent hold your house open to the public. I hope you'll find a buyer soon.

Sandy

[Brandon Hoffman]

You need it priced well and showing like new.

[lovingville]

Thanks for all the advice. It is defintely showing new. My realtor went through and had me put a TON of stuff in storage and helped me stage it. It looks beautiful. If I didn't want to get out of a 2 story so bad I would be happy. As far as price, I have it listed for 289.9K. It has 3619 sf, 4 bedroom, 3.5 bath and bonus room. Huge kitchen with corian countertops, Hardwood floors and tile throughout. I think if someone would just look at it they would want it.

FYI, I am in Simpsonville, SC.

[8 SNAKE]

Originally Posted by lovingville

As far as price, I have it listed for 289.9K. It has 3619 sf, 4 bedroom, 3.5 bath and bonus room. Huge kitchen with corian countertops, Hardwood floors and tile throughout. I think if someone would just look at it they would want it.

FYI, I am in Simpsonville, SC.

What are the comparable homes up the road selling for?

[lovingville]

There is one that is < 3000 sf listed at the same price and another one <3000 sf listed at 287K.

[8 SNAKE]

What about homes that have actually sold?

[lovingville]

Only 1 home has sold in the last 6+ months and it was a basement home for 310K.

[Panochote]

Lease your property until the market levels off again. Your thinking is correct.