Need advice on pricing our home to sell

[lecach]

Our house has been on the market for about 50 days. Its priced at $182,900. We had 1 bad offer that we turned down and about 30 showings. Our realtor says we should lower it to $179,900 so that if people are doing a search up to $180 they will see our house. I cant imagine that anyone who doesnt want to pay more than $180 would not look at our house since its so close to that mark. And our price is right in line with the others in our large neighborhood. Our neighborhood is very popular -especially with Duke medical students - and in the $170-190 range there are only 6 houses out of 3000+. So there isnt much competition. We were thinking of lowering the price to $181,400 - just to get the "Just Reduced" notation on MLS. The realtor says if we're not lowering to $179,900 that there is no point. Anyone have any advice? Should we stick it out since its been a slow spring according to all the realtors? Should we lower it all? We would like to close by late June - when our new house is ready. All the comments from the showings have been positive ("great house", "cute", "nice floorplan"). The most negative is "client would like a bigger yard".

So - any advice?

 

[floridafam]

IMO,

I think your realtor is right.

You don't have to lower, though. It's up to you. If you are going to lower it I would go to 179,900.

Good luck with the sale.

 

[bananiem]

We had a certain amount we were willing to spend. Our realtor (who was with us through one selling and two purchasing) knew we were willing to only look at houses up to that point. So yes, people who are willing to go only to 180,000 will not look at your house.

 

[mickeyboat]

I also think your realtor is right. She knows the area, she has experience with sales in your area, and how people search for homes. It may depend on how desperate you are to sell, and how long you can afford to sit on the house.

Good luck!

Denae

 

[pearlieq]

I actually agree with your realtor too. While the buyers agent might not get too concerned with price cutoffs, your average joe who is playing around on realtor.com has to put in a upper dollar limit. If he puts in $180,000, the houses he gets returned will be absolutely no more than that.

Since internet house hunting is becoming such a bit part of the buying process, it may be worth your while to go scour the house-hunting websites and see what their price thresholds are. If they all contain a $180,000 threshold, it would behoove you to get in just slightly under that.

I don't think a price cut other than one that gets you under a price threshold is worth your time and money.

Good luck with the sale!

 

[The Mystery Machine]

OK...pricing is done in 5,000 increments that is why she is saying there is no point in that kind of reduction.

Pricing at 179,900 catches the eye of 184,900-174,900. It is for the realtors as that search will shut your house out at the price you want to list. So yes, she is right.

Your price will shut you out of the 5,000 increment search that the realtors use.

 

[golfgal]

I agree with your realtor. Lowering the price you suggested isn't going to bring it up on anyone's searches. With the $179,900 you open your house to a new market.

If someone is looking in the 160,000-180,000 range, 180,000 is already on the outside of their budget, even a few thousand dollars more might make a difference. When we were looking for our new house, we knew how much we wanted to spend, we didn't look at anything outside of that range because we knew we didn't want to spend that much on a house. Most people don't look out of their range when they are seriously looking to buy.

Chances are if you re-list your house for the 181,400, they are going to see that and say forget it, they aren't willing to work on the price because everyone that is going to see your new price has seen your old price. If someone that is looking up to $180,000 sees your house, it is nicer then what they are looking at currently, they are probably going to offer close to that $179,900 price.

The other thing to think about is that you could leave it at the 182,000 and have it sit on the market for 2 more months, paying MORE in your house payments then you would get out of the house listing it at $179,900 and having it sell in a week or two. You have already made 2 house payments or will in a few days, since your house was listed, the difference between your current asking price and what your real estate agent is suggesting is probably less then those two house payments.

 

[PaulaSue]

I would lower like he said. I have been searching for houses online and I go by the price ranges thee computer sets so I wouldn't have seen your house they way it is priced. JMOP

 

[palmtreegirl]

I agree with the others, lower it to 179,900.

 

[lecach]

You've all made really good points. We were really hoping to get $180,000 out of the house but if we get an offer for less than $179,900 we dont have to take it. It would be better to "lose" a couple of thousand than to carry two mortgages.....

Maybe it will get us some more interest. We still have 2 months before we want to close but we are starting to get nervous. We could always lower it and then raise it back up - right?

 

[mickeyfan2]

My first question can you afford to stick it out? Can you afford the new home if this one does not sell? You are only talking about $2100. Is that make or break for the new home?

IMHO do what the realtor is suggesting.

 

[golfgal]

You've all made really good points. We were really hoping to get $180,000 out of the house but if we get an offer for less than $179,900 we dont have to take it. It would be better to "lose" a couple of thousand than to carry two mortgages.....

Maybe it will get us some more interest. We still have 2 months before we want to close but we are starting to get nervous. We could always lower it and then raise it back up - right?

You can't really raise it back up. If you want $180,000 out of the house, don't lower it, but you have seen what is happening at your current price. At $179,900 you could very well get an offer of $179,000. Is the $1000 going to make that much difference? You have to keep in mind your house is only worth what someone is willing to pay no matter what the houses around you go for.

 

[lecach]

You know from the beginning - before we even listed - I had in my mind that we'd probably sell for $178,000. Maybe it was a premonition. We're going to talk to the realtor. DH is REALLY against lowering. But we cannot carry 2 mortgages. It would definately take a load off of our minds to sell even if it is less than we'd like.

 

[The Mystery Machine]

No you won't be able to raise it.

You are also at ground zero now. There is no way you will be closing within 2 months.
Summer is slow and it does not pickup until end of July.

30 showings and no offers...what is going on? Either price is too high or your house needs too much work.

At top dollar you should have new neutral paint, new flooring, new appliances. It should be clutter free and move in ready.

What is the issue you think?

 

[lecach]

Unlike most of the houses in our neighborhood we have a new Trane gas furnace and new Trane AC. We have a new smooth top stove and new dishwasher. We're leaving the washer and dryer and fridge with the house. The paint is all neutral although the living room probably could use some paint - its not bad though. The carpet is 5 years old and neutral - and in excellent condition. We've decluttered. We have a walkin crawl space which is not common and we have a 3 tiered deck which is also unusual. These are what I think could be issues:

-the master bath has only a shower, no tub. But there is a tub in the hall bathroom. This is common in our area.

-both full baths need new linoleum and could probably use new cabinets. But ours are in much better shape than most houses in our neighborhood.

-the yard isnt great. The front yard is fairly flat but 50% of it is a planted area with trees and mulch. The back yard is wooded but on a slope. The grassy areas are not in the best of shape. We've TRIED to grow grass but it just doesnt seem to take.

-we have new brick steps on the side entrance. The old ones were in bad shape so we had them replaced. But this could be a red flag to someone.

-there are new houses with alot more sq. ft for less money available in our zip code. They are in neighborhoods with houses very close to each other and no privacy. But some people may care more about the interior. And I cant say that I blame them so much.

-also there just havent been many houses selling. Only 2 houses in our price range in 50 days have sold in our neighborhood - and those were in the last week. All the realtors say its been really slow and just now picking up. The new medical residents are just now coming to town to look.

 

[The Mystery Machine]

OK...now this is better!!!

Redo the bathrooms with fresh paint. Do the flooring even if it is peel and stick. Your potential buyers have too many negatives and walk away saying, "work, work, work".

Paint that Living room!!! You need some POW!

Have you taken down ALL family pictures, collections, and oddities?

Watch "Sell This House"...that show is terrific. Great tips.
http://www.aetv.com/sell_this_house/index.

I would certainly make changes or really reduce the price. You need to stage your house better. If you were going to buy your house, what would you say. Good Luck...Competing with new houses is tough. You have to look move in ready in order to sell quickly these days.

 

[barkley]

when we priced we went with 619,000 vs. 620,000 to draw in a larger market base. our market has been incrediby slow due to the weather but is picking up now. we figured (as did our realtor) that anyone doing an on-line search for up to $620,000 would see ours (vs. the bulk of our competition which priced at 620,000 or above). one house in our neighborhood sat on the market for months in the low $620's-they lowered their price to just below $620 and sold within a few days.

personaly, when we look to buy again i will search for houses (depending on the area and the market) for as much as $50,000 more than i want to spend because i may be able to low-ball offer someone who HAS to sell and get a great deal-most buyers don't have this attitude though. i think alot depends on if your house/price is considered entry level (wherein most buyers have been preappproved for a very fixed amount and can't negotiate up much so they don't look much out of their mental price range) or a "step up" house where you are more likely to get a buyer with a larger down payment and more of a credit line to play with.

i would'nt sink a chunk of money into cosmetic repairs unless it will result in a larger payoff (and since it's already on the market unless you pull it off for major renovations it won't market to increase the price).

have you gotten any feedback from buyers or area realtors? they tend to be the best indicators as to why a house is'nt selling. i know there's one in our neighborhood thats gone on the market twice in the past year (same owner) that is'nt selling (despite a big price reduction and offering a big credit back at closing) because the house has exterior paint that is HOT PINK (i think everyone that looks at it gets a headache)-it turns people off from the get-go. so it could be some isssue that could be dealt with relativly easily that is preventing buyers from seeing all the positives the home has to offer.

 

[golfgal]

I would disagree with the peal and stick in the bathrooms. That would be an INSTANT turn off for me. Bathrooms are small, having new flooring put in isn't expensive, but since your sticking point is only about $2000 away, I don't know that I would re-do the bathrooms unless you are talking really bad flooring. If your living room needs a coat of paint, I would do that. Are the yards around you in the same shape as your yard? If they are, then I wouldn't worry about it too much, if the other yards have nice grass, it would be worth it to put in some sod. If the outside of your house doesn't look nice, people aren't going to want to see it.

 

[SeeDisney]

There's definately a lull in the real estate market especially at my neck of the woods.


My friend here accross the street has a house on the market since September. Many showings but not one offer for it.

Guess what.......9 months later. Their other "brand new" house is ready and they're FORCED to move in and it looks like she going to have TWO MORTGAGES!!

She though reduced it several times too. I would say and reduce the amount to $179.

Good luck to you.

 

[bananiem]

Another thing I've seen done is to offer a lower price and say you're offering a "painting" or "flooring allowance."