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Old 05-07-2010, 09:58 PM
 
1,727 posts, read 2,949,621 times
Reputation: 1461

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First off, I'm wondering if there are still buyers out there? My condo has been on the market for 30 days now and since April 27th, traffic has completely stop after about 16 showings.

Second, my agent wants to lower the price and thinks I should decrease my home price by 35k down to 499k. That's a drastic change but she thinks it must be done to have any impact. Similar homes on the market range from 500-550k. Should I go ahead with it if I'm not desperate to sell? I'm afraid the longer my home is on the market, the more stale it will get if it doesn't get sold.
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Old 05-07-2010, 10:09 PM
 
Location: Tempe, Arizona
4,511 posts, read 12,871,653 times
Reputation: 2199
Your agent should know your market and what it takes to sell your home better than anyone on this forum. If you want to sell, then probably best to take her advice.
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Old 05-07-2010, 11:05 PM
 
Location: Alaska
89 posts, read 188,947 times
Reputation: 43
I think the question is do you want to sell and at what price. You state you aren't desperate to sell. Only you know your bottom line. If listing at that price means you still get what you are want, then lower it. You don't have to go below your line unless you feel you must sell and want to fast.
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Old 05-08-2010, 07:34 AM
 
Location: Sheridan County, Wyoming
692 posts, read 1,618,206 times
Reputation: 624
Quote:
Originally Posted by rjrcm View Post
Your agent should know your market and what it takes to sell your home better than anyone on this forum. If you want to sell, then probably best to take her advice.
If your real estate agent really knew the market, they wouldn't be asking for a decrease in price. DUMP THE AGENT
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Old 05-08-2010, 08:02 AM
 
Location: Central New Jersey
238 posts, read 1,064,744 times
Reputation: 99
You say you are not desperate to sell and then you express concern about your condo becoming "stale". You really have to make a choice.

When I make listing presentations I ask the seller whether they want to sell quickly or are they willing to accept the possibility that the property make take a while to sell. Dependent on the seller's answer determines how aggressive I am with my pricing recommendation.

The fact that you got so many showings must mean that you are in a desirable area and your price is attractive. However, you should not ignore recent selling prices of comparable properties in your community in addition to those that are currently on the market.

Apparently your agent's strategy is to position your condo as the lowest priced comparable property in the area; however, I would ask my agent for feedback from those agents who showed my home to eliminate the possibility that it may be something other than price that is keeping your condo on the market.
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Old 05-08-2010, 08:17 AM
 
25 posts, read 68,384 times
Reputation: 27
Quote:
Originally Posted by rjrcm View Post
Your agent should know your market and what it takes to sell your home better than anyone on this forum. If you want to sell, then probably best to take her advice.
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.
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Old 05-08-2010, 09:41 AM
 
58 posts, read 193,393 times
Reputation: 26
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.
It will be, and so will June, because those two will be closing months for all people that got contract by tax credit deadline, Apr 30. In other words, people already bought homes for next two months.
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Old 05-08-2010, 09:48 AM
 
Location: Barrington
61,120 posts, read 41,956,263 times
Reputation: 19695
It all depends on local market conditions.

In declining markets, the longer you sit amongst the unsolds, the less net proceeds you are likely to get. Time on the market is your enemy.

In appreciating markets, time on the market may be your friend. The longer you sit, the more likely someone will pay more.

Your recent local closed comps are the best predictors of the next closed sale price.

Many Sellers and their agents continue to not adjust their pricing strategy to local market conditions. They price to the active competition ( the unsolds) as opposed to those who have achieved a sold and closed state.

Seeing 30+% differences between original ask and closed sales is not unusual in my area. This does not mean my local market has declined 30%. Rather, it's all about original asking prices that are rooted in fantasy land.

Nothing sillier than making multiple insignificant price adjustments, over time. Do it once and do it right and get sold, if your objective is to move.

If you do not need to sell, take your property off the market, because every unsold listing contributes to a downward price trend.
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Old 05-08-2010, 10:39 AM
 
Location: Tempe, Arizona
4,511 posts, read 12,871,653 times
Reputation: 2199
Quote:
Originally Posted by eiafjam View Post
If your real estate agent really knew the market, they wouldn't be asking for a decrease in price. DUMP THE AGENT
You know, crazy as it seems , not all seller's listen to their agent's advise about the market and what it takes to sell. Sometimes it takes time for reality to set in. Perhaps the agent is trying to get the price adjusted to a more realistic selling point based on current market conditions.

The OP said "Similar homes on the market range from 500-550k." Are these recent sold comps (should be), or active listings? You need to price to what homes have recently sold at, not what others hope to sell for.

I'm not discounting that the OP's agent may not be accurately assessing the market. However the odds are better that the agent has more information than anyone else here to give relevant advice.
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Old 05-08-2010, 11:39 AM
 
380 posts, read 997,614 times
Reputation: 198
16 showings seems like a lot with no offers. I used to figure on it taking less than 8.
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