How long did it take to realize your home was priced wrong?

judieblueApril 10, 2009

My home has been on the market for just a couple of weeks. Brokers LOVED IT, 5 showings first week, one couple loved it but had issues with location, no feedback from the others and no showing this week! We had 4 agents in to do CMA's. All loved it! We went with the higher price which was not much higher than the other two agents ($20K difference in a $650K price we are asking). I realize that this is holiday time, but know that homes get the most activity when they are first listed. I have sold two other homes in the last 25 years. First home (starter) sold within the fist few weeks - lots of activity and they were lined up at the door. Sold for just about asking price - way different market. Second home - agent sold us a bill of goods - told us the market was crazy and we probably could shoot for the stars and get it, so we listed high and I knew within the first week that we were way off the market. We listed for $479K, dropped as soon as a similar home to our sold for $455K (the agent used our home as a comp and they bought the lower priced one! I kept on dropping to catch the market and sold for 4 months later for $435K. I vowed never to do that again. Now I have a home that is not your standard and desirable to a particular market, hence the price we are asking. The agent group I am with has said that the market is very slow and be patient. My friend sold her home in the same town in one day, but it was listed WAY below market value. She had several offers below asking and one finally went up to asking price and they closed at asking price in a month. I just don't want that DOM # to keep on rising and buyers lowballing. I also want to get buyers in the home and get it sold quickly. I am thinking on dropping the price drastically by $50K which would put us below most of our competition sq ft wise - there are some difficult homes to sell and they are listed way below the market and still not going anywhere (major interior issues, major work that has to be done, etc). When I asked our agent group about them they said that the homes were just not desirable. I want to sell but am terrified that buyers will think I am desperate by a major price drop. I DO want to bring in the buyers to get an offer! I am starting to think that I should have followed my gut feelings and priced it low to begin with. I also think that I should wait a few weeks before I do drop the price, due to the holidays since many people are on vacation. On the other hand, I bought my first home just before Christmas and the other just before Easter! What to do, what to do!!!!!!!

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Where is your market? Is it a buyer market, seller market or neutral? What are the current DOM for your price range? Are you a high, low or medium price range for your area? Do you have a selling season? Are you mostly looking to sell to corporate relocations?

Answering those questions will possibly allow people to give you a more informed answer - for instance you are a high end home with average DOM of 180 would be "that's the market", or medium priced but we are $30K above our nearest competitor is going to have people tell you, "drop the price now".

Are you panicking? Or do you truly feel you are priced too high? Is anything moving in your price range in your area now?

    Bookmark   April 11, 2009 at 12:00AM
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After 4 weeks, our broker advised us to drop our price, but we got an offer right before we dropped it. We ended up selling for less than the lower price the broker suggested but the price we are selling for worked for us as 1) we needed to sell 2) its a buyer's market in my area, 3) the inspection found various issues so we were willing to go lower as we are motivated to move and 4) we bought the house in 1991 at the bottom of the market, had a small mortgage, and had not put much $ into it over the years. Everyone's situation is different but listen to your broker if you trust him/her(and hopefully you do!)

    Bookmark   April 12, 2009 at 10:19AM
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