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Old 05-08-2010, 12:14 PM
 
Location: Marion, IN
8,189 posts, read 30,041,561 times
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The asking price of similar units is not relevant. The recent sold price is what you should be looking at. Not sure where you are located, but here 30 days on the market is nothing.
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Old 05-08-2010, 03:19 PM
 
4,486 posts, read 9,901,005 times
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I'm looking for homes in a particular area of LA and am stunned by the range of prices with no ryhme or reason. I think its due to the fact that in 2006 the median in this area was $650K and now the median is about $390K(had been as low as $368K).

So I see homes literally a block away from each other...one listed at $230/sq ft and the other listed at $350/sq ft.......with literally no difference in quality of home. And guess what? The stuff at under $250/sq ft sells quick. The stuff over $300 sq/ft sits for months.

I really think its a factor of some out there thinking "I have to get xxx amount" rather than "What prices are selling".
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Old 05-08-2010, 04:11 PM
 
Location: Tempe, Arizona
4,511 posts, read 12,947,327 times
Reputation: 2200
Quote:
Originally Posted by JohnG72 View Post
...I really think its a factor of some out there thinking "I have to get xxx amount" rather than "What prices are selling".
Agree. And this is where a listing agent hits a brick wall when trying to price a home correctly. Either the agent gives up or gives in hoping for a price reduction later.
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Old 05-08-2010, 08:02 PM
 
1,728 posts, read 2,972,976 times
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Thanks for everyone's input so far. Here's abit more information. My condo is in Hoboken, NJ which is very convenient to NYC - just a 5 minute train ride gets you into the city.

My 2br/1ba condo on a 4th floor walkup is now listed at 535k and my agent wants to lower the price to 499k. I think she wants to attract a new pool of buyers looking for homes under 500k. I'm hesitant to lower it that much because a similar home sold earlier this year for 505k (2nd floor, less updated kitchen and 2 ba) and another sold last summer for 535k (updated kitchen, 2 ba and 4th floor walkup).

There are two similar properties on the market now for 544k and 539k. One has been on market for 40+ days and another just came on.

I think I have 3 options now and am wondering what to take:
1. Take the condo off the market and try to sell again in the fall or next spring since these next 2 months are likely going to be dead
2. Decrease price to 499k as the agent suggest
3. Decrease price by a smaller margin but enough to get traffic again - is 5% enough? That would make it 509k.

Thanks.
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Old 05-08-2010, 08:06 PM
 
1,728 posts, read 2,972,976 times
Reputation: 1471
Quote:
Originally Posted by HBosch View Post
That advice completely ignores the obvious conflict of interest an agent has when telling you to lower your price. The agent knows if you don't sell within their contract period they aren't going to get paid anything. Therefore it's in their best interest(and not necessarily your best interest) for you to lower your price.

Yes an agent will get less commission with the lower price but 3% of the lower price is better than nothing in the agents eyes.

I'm going through a similar situation. I feel like my agent isn't giving a great effort to sell my property and wants to me to make up for his shortcomings by continually lowering my price.

I do share your concern that the tax credit soaked up all of the remaining buyers. I haven't had a showing in 2 weeks. I think May is going to be completely dead.
I agree with you about the conflict of interest part. And though I know you're likely right, am hoping that it's not true about the next 2 months being dead. How long has your place been on the market and has your agent tried to get you to lower the price?
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Old 05-08-2010, 08:31 PM
 
4,676 posts, read 9,193,000 times
Reputation: 4898
Quote:
Originally Posted by kimchee View Post
Thanks for everyone's input so far. Here's abit more information. My condo is in Hoboken, NJ which is very convenient to NYC - just a 5 minute train ride gets you into the city.

My 2br/1ba condo on a 4th floor walkup is now listed at 535k and my agent wants to lower the price to 499k. I think she wants to attract a new pool of buyers looking for homes under 500k. I'm hesitant to lower it that much because a similar home sold earlier this year for 505k (2nd floor, less updated kitchen and 2 ba) and another sold last summer for 535k (updated kitchen, 2 ba and 4th floor walkup).

There are two similar properties on the market now for 544k and 539k. One has been on market for 40+ days and another just came on.

I think I have 3 options now and am wondering what to take:
1. Take the condo off the market and try to sell again in the fall or next spring since these next 2 months are likely going to be dead
2. Decrease price to 499k as the agent suggest
3. Decrease price by a smaller margin but enough to get traffic again - is 5% enough? That would make it 509k.

Thanks.

Decrease the price to $499K. 4th floor walkups in my market are worth less than 2nd story. The 4th floor unit which sold last year is too old to be used as a comp.... plus it had a 2nd bathroom.
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Old 05-08-2010, 08:46 PM
 
Location: NJ
17,578 posts, read 43,870,895 times
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There must be more comps than that for places in Hoboken. How many sold comps have you and your realtor looked at?
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Old 05-08-2010, 11:14 PM
 
Location: Tempe, Arizona
4,511 posts, read 12,947,327 times
Reputation: 2200
Quote:
Originally Posted by ocngypz View Post
Decrease the price to $499K. 4th floor walkups in my market are worth less than 2nd story. The 4th floor unit which sold last year is too old to be used as a comp.... plus it had a 2nd bathroom.
I agree, a unit sold almost a year ago has to be discounted. Ideally, you want to look at units sold within the last 3 months, perhaps up to 6 months.

Are you in a declining market? If so, then you will need to adjust prices downward from the point a comp has sold. That's what an appraiser will do.

So a unit on the 2nd floor (more value) with a 2nd bath (more value) sold for only $6K more than what your agent is advising for a 4th floor unit with 1 bath? Well, obviously, what can she be thinking? $499K is probably still too high.

Of course, you can discount my advice since I'm only looking out for my commission and could care less about fiduciary duty .

Last edited by rjrcm; 05-08-2010 at 11:24 PM..
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Old 05-09-2010, 10:23 AM
 
Location: Charlotte, NC
2,193 posts, read 4,807,975 times
Reputation: 1075
Quote:
Originally Posted by kimchee View Post
I agree with you about the conflict of interest part. And though I know you're likely right, am hoping that it's not true about the next 2 months being dead. How long has your place been on the market and has your agent tried to get you to lower the price?
I don't think it's true that it's a conflict of interest. The listing agent wants it to sell just like you do. Yes she gets her commission but you get rid of the condo too. I think both people are on the same side.

I'm also confused as to why you feel your condo is worth more than a condo that sold for less than your list price and it had two bathrooms?

I also think you lose all the buyers who are looking up to the 500K range when you list for 509K.

It's really up to you though as we don't know the particulars of your situation.
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Old 05-09-2010, 11:43 AM
 
2,585 posts, read 5,011,856 times
Reputation: 5094
A two bedroom condo in a walk-up is a hard sell as many people who look for 2-bedroom units (at least in my experience) are folks with a new baby or a toddler who now needs their own room.

Carrying strollers, diaper bags and everything else that you have to lug around with a baby to a fourth floor walk-up and paying half a million for the privilege is a pretty hard sell. The same goes for groceries, laundry and the like. There is so much inventory out there now that you have an uphill battle on your hands even if you lower the price to $499.
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