Price Reduction, opinions?

16 years ago

My house is listed at 295,000 and is 30 days on market.

2 showings. 2 at previous open house.

Feedback, shows well from both realtors. First looker said too small which is true I know, second looker, was in town for a job interview, may be interested but has to get the job first.

His realtor told my realtor that other properties he's sending this guy aren't as nice and he thinks my price is ok.

My realtor says she isn't worried about a price reduction right now because

30 days is nothing, DOM was around 75 days for March and April.

She told me when I listed May that May when thing picked up. Then she said it wasn't good because of graduations and that June was when things picked up. Probably all normally true but is not what I'm hearing. I'm not sure what inventory in the area is but my impression is there is a ton of both new construction and existing homes and the market here has stalled in a fairly big way.

There's a guy at work who's house has been on the market for over a year - 4 price reductions, 2 realtors. Also another guy, 6 months?

I figure, after a stall generally the price reductions start.

This is the Midwest so the whole big appreciation boom never happened here. I'm not sure how that affects things but the overinflation never happened so the price reductions may not be as dramatic either. ????

I'm leaving for my new location next week. I don't have a lawn sprinker system. So the lawn will dry up, the wild flowers will quit blooming, you can't hire anyone to weed the shrube and flower beds, just mow. I.e. its not going to get better curb appeal after I leave.

I don't want to chase the market down.

Her opinion is to go, later or now or whenever, to 285,000.

I don't have an opinion on the increments but I know that's about as low as I'm willing to go period.

August I will start looking for rentors. The military buyers on summer rotation will be close to having their housing lined up by then I think and people will want to get something nailed down before school in September. If I wait too long I don't think the rental market will be friendly either.

I will be talking to her in about an hour when she comes for an Open House. Then i start packing.

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Comments (4)

theroselvr
16 years ago
Mary, If I remember right, your realtor wasn't enhanced on realtor.com. Would it help? I don't know. Hard to say since it isn't on your listing.

Think I asked in the other post - how long is your contract with this realtor?

You can't make people buy the house if there is no market. I hope your realtor didn't miss the buyers due to not advertising.

Ask her to print you out a list of what's sold verses inventory. I'm almost sure you can get it online, I saw it one day for my area although I have no clue where. Also try putting your address into zillow.com, that will give you some comps too.
marys1000
Original Author
16 years ago
Oh my. My address isn't even on Zillow. Not to many comparables
The linked one has a better location (closer to west Omaha) but is on a dirt road. Older and bigger than my house but has outbuildings which mine doesnt. Mine has more land. Rural water vs. well. etc.
All the acreages seem like that. Hard to compare exactly.
Personally i probably would have bought this if it had been for sale when i was looking even if it is ugly. Putting up outbuildings is expensive and I would have been much happier on something ready to go. Never had chickens here.

Here is a link that might be useful: one comparable
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dach
16 years ago
I'm in fly-over too and you're right, Zillow hasn't really made it to our market as of yet.

The prob in the midwest is that the national media keeps screaming about the "housing bubble" that has burst. It's not uncommon to hear about how buyers can get a steal at 20-40% below asking price. What they fail to address is the little talked about smaller markets (like those of us here in the midwest). Since our markets never benefitted from the tremendous increases between 93 & 03, it stands to reason that the enormous profits being realized in other markets did not happen in areas where land values remain relatively stable.

However, your average consumer doesn't get his housing forecast from local sources, they get their information from national statistics. So when CNN, MSNBC, & FOX keep promoting deep cuts in housing prices, they expect to receive great cuts in housing prices.

The result is builders selling housing at or below cost and resales going for less than what the buyer paid 5 or even 10 years ago. For example, a new home purchased for 250K in 2003 may not be able to sell for anymore than 225K now. As desperate sellers accept less and less, comps in the neighborhoods go down.... appraisals go down.... and hence, the value of your property goes down. The sellers, knowing their property would cost 300K to build at today's costs, simply cannot accept the fact that they have lost money in the value of their home. So when presented with "low ball" offers, they refuse and the house remains on the market. Consequently, the DOM increases and eventually they cave-in to whatever they can get, or they opt to remove their homes from the market.

IMHO...

It's up to you as to when you are desperate enough to cave-in, but it's probably going to happen unless you generate some extremely good luck.
marys1000
Original Author
16 years ago
Well my realtor said as of the past week activity has been up a little. Last weekend there were people out at open houses when in May they were getting reports of none. She said some of the new construction inventory is starting to go down. A lot of that doesn't impact me since I'm an acreage but.....
Today was sort of a surprise with 4 people showing up. She said they all seemed to be serious buyers rather than tire kickerss - just not necessarily buyers for my place:( I guess two might be sort of be maybe's.
We've tentatively decided to go from 295 to 289 in a week to get below any really hard core literal type realtors who have been told 290 is it and that's all they are searching by. Then in 2 weeks after that 285.
People have heard this before, I'm not getting my money back but I also realize that is partly my fault. So I do think this is priced a little high for such a small house with no outbuildings. She disagrees because just like when I was looking, there arent that many nice homes on acreages below 300,000. People pay a lot to get on an acreage then don't do maintenance. Or they're so far out on dirt roads no one is interested. Its just so dang hard to know.
Well anyway, hope our tentative plan is the right way to go.
Pray interest rates don't zoom up. Oh, and since I'm on an acreage, that gas prices stay low!