How much to reduce?
I've posted in another thread from a few months ago but think this is really a separate thread now. House has been on market almost 4 months. We have had one price reduction from $600k to $565k (where we are this is fairly high end). It is hard to determine comps because these are custom houses on acreage so acreage varies from about 1 acre to 6 acres.
We have had 16 showings (and had 2 others that we had to cancel). Have had 3 people express serious interest but no offers. We need to sell quickly. I've been told this is a good activity for our price range in this area. Back when we bought (when the market was good 4 years ago) I was told that houses in this subdivision usually take a year to sell. I've seen a lot of variability in that over the years.
We are considering dropping to around $537 to 538k.
Since the beginning of the year within the general area (of course some people may buy farther away) there have been 7 sales (3 within the last 3 months - I saw no significant difference between these and the earlier sales). One sale I don't have enough information on.
The CMA on the surface says average DOM is 79 days and houses sell for 93% of listing price. However, I asked to sell the listing history on the sold houses and the ones that are active.
I found out the CMA doesn't really tell the story. For the 6 houses I have detailed info on, they sold for 84% of original listing price. Average total DOM was 455 days! One house was on the market over 1200 days. If you take it out the average is still close to 300 days. One house sold during its initial listing (57 days) and sold for 91% of initial listing price. Another sold after 4 1/2 months for full listing price.
If we lower the price to around $538 we have reduced about 10%. That is fine but I am a little disconcerted that most of the houses (with the exception of the full price) all seem to sell for about 9 to 12% below the final listing price. I am somewhat concerned about reducing it and then having buyers expecting to get another 10% off (that said I don't think we started as high as some of these houses started a year or two ago when the market wasn't as bad).
There is one pending sale on a house that is at about 91% of listing price, don't know what it sold for.
Of the active listings, the average DOM is 278 days (not counting our house). The average price reduction has been about 7% but some houses have had no reduction and a couple have had 30% or so reductions. Most of the ones with no reductions are newer listings (less than 3 months) but one has been listed almost a year (don't really get that one). A few have had token (less than 5% reductions). In general the longer the house has been on the market the greater the reductions. If we reduce to 10% off our original listing price we will be the only house with that much of a reduction that hasn't been listed for over a year.
It is clear that it usually takes a long time for these houses to sell. I want to break the odds and sell before a year. I am still thinking after seeing this to reduce to around $538k. Any thoughts based on this?