pricing our house?

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TheDogFather
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Re: pricing our house?

Post by TheDogFather »

theplayer11 wrote: Wed Jun 02, 2021 6:49 pm will sell for above asking price, so price it high...The market is insane.
Yes, you can’t rely on historic comparables even a few months old.

On our street a house just sold for 5% above the asking price, which was priced at 20% above a very similar house sold in the last year.
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gips
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Re: pricing our house?

Post by gips »

smitcat wrote: Wed Jun 02, 2021 12:18 pm
gips wrote: Wed Jun 02, 2021 11:47 am
BogleFan510 wrote: Wed Jun 02, 2021 9:15 am Any negotiation of commission rates? Curious.
it was 5 per cent, with anyone else i would have pushed but with a friend, didnt bother.
You were hoping for offers by Sunday night, how is it going so far?
Hit the internet as "coming soon" this morning. we're still working towards declutter/cleanup, first showing is friday afternoon, so far we have seven appointments. I think if we have 20 appts btw friday and sunday, we'll get an offer unless it's mispriced.
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gips
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Re: pricing our house?

Post by gips »

we're up to 10 appts on fri and sat, nothing on sunday, seems to me demand must have slackened here over the last two weeks or so...I'm becoming a little pessimistic about receiving an offer.
Jeff P
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Re: pricing our house?

Post by Jeff P »

gips wrote: Thu Jun 03, 2021 4:47 pm we're up to 10 appts on fri and sat, nothing on sunday, seems to me demand must have slackened here over the last two weeks or so...I'm becoming a little pessimistic about receiving an offer.
I’d imagine people making appointments to see houses in this market are ready to put in offers if they like the house and aren’t making plans to see houses they dont think are offer worthy at the price.

We sold our house a few years ago. Priced to set the market per sqft. We probably had 10-12 views max and got 7 offers. Went back to the best ones, told them we had multiple and to come back with their best. Kinda regret doing that instead of a bidding war but out agent was lazy, in it for a quick commission and gave bad advice.m throughout the process.
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gips
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Re: pricing our house?

Post by gips »

looks like we're 0 for 4 today. :(
smitcat
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Re: pricing our house?

Post by smitcat »

gips wrote: Fri Jun 04, 2021 5:53 pm looks like we're 0 for 4 today. :(
This is what we have seen in our area of NY - things quieted down a bunch after beginning of May. Realtor call, appointments made, showing completed and offers made all dropped off the charts within a couple of weeks.
I am sure that the drop was not as abrupt as the stats would indicate but more a result of how hot the market was for a couple of months after February.
deikel
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Re: pricing our house?

Post by deikel »

regularguy455 wrote: Fri May 07, 2021 6:23 pm I will say the market seems to be softening where I am. I would list it ASAP.
I think that is generally true, COVID is 'over' so people go back to work, commute kicks back in, distance to work becomes relevant again, people can go out again - so the entire bid up we saw during COVID is slowly stopping and will then reverse

If you want to get in on the hot market, its getting late already where I am
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deikel
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Re: pricing our house?

Post by deikel »

I don't get why people are bashing Zillow and their estimate. Look at it from the other way round (since this is a simple pricing problem that applies to all goods sold anywhere). Buyers have the following data they can pull to see if it is 'worth it':

- tax records: Notoriously lower then the final sales price, tax roll usually is years behind true market value, resets whenever a sale actually happens and then rolls forward at some yearly region average - or however the assessor feels like.

- zillow and co: They kind of use the same technique then the tax man. They reset based on actual sales data, they roll forward with the average sales in your area (a bit more accurate then the above), but still delayed in time and diluted with the inventory - at least they do so monthly and not in spurts and jumps like the tax man

- realtor/insurance estimates based on comparables: Pretends to be more accurate, but is also wildly dependent on what factor you favor to what degree. Usually nr of bedrooms/bathrooms, square footage and size of lands come in here. They do add extras in some odd formula to come up with a rough equal price. This works best in areas with a lot of inventory movement and similar houses - not really well in others with unique properties.

- realtor - reputation: This is a funny one. They come up with a list pricing in my area (presumably on comparable) and then they tell every buyer that all their sales are ALL within 95% of the list price to stop any argument to make low bids or drive the price down. So, I will assume all lists are rather high and they keep reframing this way....and people believe this shit...I purchased mine for 85% list, the realtor was 'shocked' and pretended that would never happen (I guess it also made me feel too good and not even further question the 85%)

- realtor - pricing party: This one I find very useful. Your listing agent brings in all the other realtors in the region for a previewing and then asks THEM what they think its worth and write it down. This kind of does two things, you get the average comparable wisdom from multiple agents AND the current level of buyers and they spending rolled in one - its not an auction per se, but its close to see what buyers have right now - I would strongly recommend doing this if it is at all possible in your area. It gives you price/listing AND early market exposure to capture buyers that may come in right away. If you time it right with the first listing, you can get multiple offers at the same time frame - which is what you want (e.g. price party on Monday night, pre showing Tu/Wd, list on Th, open house Sa/So, all offers the week after),.creates nice scarcity/opportunity pressure

And lastly, if in doubt, make the list price high and reframe. You can always go lower in negotiations or in later listing (although that can backfire)

good luck
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smitcat
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Re: pricing our house?

Post by smitcat »

deikel wrote: Sat Jun 05, 2021 9:56 am
regularguy455 wrote: Fri May 07, 2021 6:23 pm I will say the market seems to be softening where I am. I would list it ASAP.
I think that is generally true, COVID is 'over' so people go back to work, commute kicks back in, distance to work becomes relevant again, people can go out again - so the entire bid up we saw during COVID is slowly stopping and will then reverse

If you want to get in on the hot market, its getting late already where I am
"If you want to get in on the hot market, its getting late already where I am"
Where is that?
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FrugalInvestor
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Re: pricing our house?

Post by FrugalInvestor »

gips wrote: Fri May 07, 2021 4:56 pm we met with the realtor, she wants to start at the top of our range and thinks we may have a bidding war. will be interesting...
We did something similar and then held offers for a few days (disclosed in the listing that this would happen). Once the deadline passed we chose the most attractive offer. This is very common in our area these days. Our house sold for over listing price, cash with no contingency other than inspection.
Have a plan, stay the course and simplify. Then ignore the noise!
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gips
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Re: pricing our house?

Post by gips »

looks like we are now 0 for 15, dang, i think we missed the market by about two weeks...
dogagility
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Re: pricing our house?

Post by dogagility »

gips wrote: Sun Jun 06, 2021 10:14 pm looks like we are now 0 for 15, dang, i think we missed the market by about two weeks...
Hang in there! Digest any feedback from the showings. Give it another week or two and then decide your next course of action which might (or might not) include a price reduction.
The more flexibility you have the less you need to know what happens next. -- Morgan Housel
rage_phish
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Re: pricing our house?

Post by rage_phish »

gips wrote: Sun Jun 06, 2021 10:14 pm looks like we are now 0 for 15, dang, i think we missed the market by about two weeks...
We’re you guys set up to have all offers due on a certain date? Or just accepting them as they come in?


I might have misse sit, but what locality?
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RickBoglehead
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Re: pricing our house?

Post by RickBoglehead »

gips wrote: Sun Jun 06, 2021 10:14 pm looks like we are now 0 for 15, dang, i think we missed the market by about two weeks...
What does 0 for 15 mean? 15 people made appointments, but no offers? Or they made appointments and did not show up?

You said initially that the realtor was pricing it at $1.2 million when you felt that in the $900s was more appropriate. I suspect your feeling that it was overpriced is right on the money. If you list for $1.2 and $900s is more appropriate:

1) You missed buyers that can't afford $1.2m, they don't even see the home for sale.
2) No one is going to offer 25% below asking price.
3) People who believe it's overpriced won't even look at it.

We're considering homes for retirement. I look at the pricing history. When I see that within the past few years the home was sold for say $500k, and now they want $900k, I look to see the description of the massive addition / renovation they did. When I don't see that, I cross it off the list. I also cross homes off the list where I see it was for sale every year for many years, because they're not serious about buying, just greedy.

It sounds like your realtor messed up. #NeverDoBusinessWithFamilyOrFriends
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gips
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Re: pricing our house?

Post by gips »

yes, we had 15 appointments and zero offers. But as of this morning we're 1 for 15, at full price!
rascott
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Re: pricing our house?

Post by rascott »

gips wrote: Mon Jun 07, 2021 10:55 am yes, we had 15 appointments and zero offers. But as of this morning we're 1 for 15, at full price!
Awesome. It only takes 1!
dogagility
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Re: pricing our house?

Post by dogagility »

gips wrote: Mon Jun 07, 2021 10:55 am yes, we had 15 appointments and zero offers. But as of this morning we're 1 for 15, at full price!
Goodonya!
The more flexibility you have the less you need to know what happens next. -- Morgan Housel
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gips
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Re: pricing our house?

Post by gips »

dang, three hours later they withdrew their offer :oops:
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RickBoglehead
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Re: pricing our house?

Post by RickBoglehead »

gips wrote: Mon Jun 07, 2021 1:56 pm dang, three hours later they withdrew their offer :oops:
Why wasn't it accepted by you? Your realtor isn't doing her job. If you had accepted it, they couldn't just withdraw it.
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gips
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Re: pricing our house?

Post by gips »

we hadn't accepted their offer, instead our realtor contacted other realtors whose client's had expressed interest to see if they wanted to make an offer. Had we accepted, I doubt we'd have gotten to closing with these buyers.
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goingup
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Re: pricing our house?

Post by goingup »

I wouldn’t get too discouraged. It’s early yet in the prime selling season. Gather the feedback from your showings, reconnoiter, and consider a repricing strategy.

Please keep updating. This is very interesting!
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RickBoglehead
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Re: pricing our house?

Post by RickBoglehead »

gips wrote: Tue Jun 08, 2021 4:03 pm we hadn't accepted their offer, instead our realtor contacted other realtors whose client's had expressed interest to see if they wanted to make an offer. Had we accepted, I doubt we'd have gotten to closing with these buyers.
Think about that.

You wanted $900s. Realtor said $1.2 million. You got $1.2 million and went looking for more.. :oops:

Had you accepted, without contingencies like so many are posting about, you at least would have kept earnest money ($36 - $60k) if they didn't close.

As I said prior, you need a new realtor.
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gips
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Re: pricing our house?

Post by gips »

there was another person who said they wanted to make an offer, another that was 50-50. Personally, I think it was the right move to solicit additional offers. In this market, it was far more probable that we received offers over asking than the original offer evaporate. Additionally, the offer we did receive included a contingency on inspection, so they had an out.

Sure, hindsight is 20-20, but IMO, our realtor was spot-on in her approach.
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RickBoglehead
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Re: pricing our house?

Post by RickBoglehead »

Nah, she wanted another $15k commission. 15 showings should have resulted in at least 3 offers. You didn't get 1 viable one. Price was too high. $1.1 is likely too high, because a low ball would have started there and split the difference.
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Ketawa
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Re: pricing our house?

Post by Ketawa »

RickBoglehead wrote: Tue Jun 08, 2021 9:10 pm Nah, she wanted another $15k commission. 15 showings should have resulted in at least 3 offers. You didn't get 1 viable one. Price was too high. $1.1 is likely too high, because a low ball would have started there and split the difference.
The agent wanted the home to sell for $500K more than the existing offer in hand, which is what it would take to get another $15K in commission?

I assume that all the buyers had their own agents and the feedback indicated they were thinking about submitting an offer. That type of information is commonly shared. The seller's agent had little to gain from not urging the OP to immediately accept the first offer. Maybe that means the agent isn't great, or maybe the close friendship complicates things.
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RickBoglehead
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Re: pricing our house?

Post by RickBoglehead »

Ketawa wrote: Tue Jun 08, 2021 10:07 pm
RickBoglehead wrote: Tue Jun 08, 2021 9:10 pm Nah, she wanted another $15k commission. 15 showings should have resulted in at least 3 offers. You didn't get 1 viable one. Price was too high. $1.1 is likely too high, because a low ball would have started there and split the difference.
The agent wanted the home to sell for $500K more than the existing offer in hand, which is what it would take to get another $15K in commission?

I assume that all the buyers had their own agents and the feedback indicated they were thinking about submitting an offer. That type of information is commonly shared. The seller's agent had little to gain from not urging the OP to immediately accept the first offer. Maybe that means the agent isn't great, or maybe the close friendship complicates things.
Buyer was going to list say $950k. She pushed to $1.2m. $250,000 x 6% = $15k
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jackbeagle
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Re: pricing our house?

Post by jackbeagle »

RickBoglehead wrote: Sun May 02, 2021 5:32 pm Don't ask a bunch of strangers on the internet...

Multiple realtors, estimates with comp backup. Zestimate is near useless.
And they'll all slap down a contract for you to sign before you get any free labor out of them. This isn't 2008.
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Ketawa
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Re: pricing our house?

Post by Ketawa »

RickBoglehead wrote: Tue Jun 08, 2021 10:26 pm
Ketawa wrote: Tue Jun 08, 2021 10:07 pm
RickBoglehead wrote: Tue Jun 08, 2021 9:10 pm Nah, she wanted another $15k commission. 15 showings should have resulted in at least 3 offers. You didn't get 1 viable one. Price was too high. $1.1 is likely too high, because a low ball would have started there and split the difference.
The agent wanted the home to sell for $500K more than the existing offer in hand, which is what it would take to get another $15K in commission?

I assume that all the buyers had their own agents and the feedback indicated they were thinking about submitting an offer. That type of information is commonly shared. The seller's agent had little to gain from not urging the OP to immediately accept the first offer. Maybe that means the agent isn't great, or maybe the close friendship complicates things.
Buyer was going to list say $950k. She pushed to $1.2m. $250,000 x 6% = $15k
The OP already posted in this thread the total commission was 5%. And obviously, that will be split up. Buyer's agent typically gets offered full 3%, or 2.5% in my market. Come on, you have to know this.
dogagility
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Re: pricing our house?

Post by dogagility »

gips wrote: Tue Jun 08, 2021 7:36 pm there was another person who said they wanted to make an offer, another that was 50-50. Personally, I think it was the right move to solicit additional offers. In this market, it was far more probable that we received offers over asking than the original offer evaporate. Additionally, the offer we did receive included a contingency on inspection, so they had an out.

Sure, hindsight is 20-20, but IMO, our realtor was spot-on in her approach.
I don't fault your agent for going back to the other buyer's agent. The buyer who withdrew their offer after 3 hours is flaky... not a good sign... probably had serious buyer's remorse after the "high" of putting in the offer.

Given the 15 showings followed by a single offer that was withdrawn, your pricing seems to be at the margin of what the market will bear.

The first wave of buyers have seen your house. Have you had any additional showings in the last couple of days (been what 10 days on the market now)?

At this point, any buyer will likely not offer above asking price (at least I wouldn't). You can choose to reduce the price to entice more buyers and/or bring back previous buyers. I'd probably wait until this weekend passes before altering the price. If you don't receive any offers by Monday, reduce the price a bit and then expect offers to come in below asking price.

Such is life in the price discovery world.
The more flexibility you have the less you need to know what happens next. -- Morgan Housel
mkc
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Re: pricing our house?

Post by mkc »

gips wrote: Tue Jun 08, 2021 7:36 pm there was another person who said they wanted to make an offer, another that was 50-50. Personally, I think it was the right move to solicit additional offers. In this market, it was far more probable that we received offers over asking than the original offer evaporate. Additionally, the offer we did receive included a contingency on inspection, so they had an out.

Sure, hindsight is 20-20, but IMO, our realtor was spot-on in her approach.
What feedback did she get from the 14 showings that didn't result in an offer? She did request feedback, right?
smitcat
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Re: pricing our house?

Post by smitcat »

Ketawa wrote: Tue Jun 08, 2021 11:11 pm
RickBoglehead wrote: Tue Jun 08, 2021 10:26 pm
Ketawa wrote: Tue Jun 08, 2021 10:07 pm
RickBoglehead wrote: Tue Jun 08, 2021 9:10 pm Nah, she wanted another $15k commission. 15 showings should have resulted in at least 3 offers. You didn't get 1 viable one. Price was too high. $1.1 is likely too high, because a low ball would have started there and split the difference.
The agent wanted the home to sell for $500K more than the existing offer in hand, which is what it would take to get another $15K in commission?

I assume that all the buyers had their own agents and the feedback indicated they were thinking about submitting an offer. That type of information is commonly shared. The seller's agent had little to gain from not urging the OP to immediately accept the first offer. Maybe that means the agent isn't great, or maybe the close friendship complicates things.
Buyer was going to list say $950k. She pushed to $1.2m. $250,000 x 6% = $15k
The OP already posted in this thread the total commission was 5%. And obviously, that will be split up. Buyer's agent typically gets offered full 3%, or 2.5% in my market. Come on, you have to know this.
Yes exactly or less - any agents that last know they make nothing by pushing a price the goal is to get homes closed.
smitcat
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Re: pricing our house?

Post by smitcat »

mkc wrote: Wed Jun 09, 2021 9:01 am
gips wrote: Tue Jun 08, 2021 7:36 pm there was another person who said they wanted to make an offer, another that was 50-50. Personally, I think it was the right move to solicit additional offers. In this market, it was far more probable that we received offers over asking than the original offer evaporate. Additionally, the offer we did receive included a contingency on inspection, so they had an out.

Sure, hindsight is 20-20, but IMO, our realtor was spot-on in her approach.
What feedback did she get from the 14 showings that didn't result in an offer? She did request feedback, right?
I find feedback to be almost worthless lately.
Nowizard
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Re: pricing our house?

Post by Nowizard »

It is fairly simple from a practical level: look up sales over the past two years in your area, figure the average price per square foot and multiply by the square footage of your house. Add or subtract to that based on your own perceptions and compare with realtor, asking "Why" if there are different perceptions.

Tim
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gips
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Re: pricing our house?

Post by gips »

thanks for all the feedback! To respond to specific suggestions:
- "look up sales over the past two years in your area, figure the average price per square foot and multiply by the square footage of your house." I've done this but given the rapid change to the market, really it's the last three months that are applicable. I came up with a number in the 9s and it seemed like she was going to push into the high nines. But then she pushed into $1.2, which almost resulted in a sale.
- the house has been on the market less than a week. We only have one person looking at the house this weekend so our realtor is planning an open house.
- If we don't receive an offer this weekend, we're going to reduce price
- the house needs work! We put off about $30k of renovations due to covid, most noticeably, the jacuzzi in the master bathroom doesn't work and needs to be replaced. We have an estimate which we received right before the pandemic to replace with a soaking tub.
- the feedback has been that it's a lovely home but the place needs a lot of work and first time buyers are nervous about taking on the work. The advice from our realtor was to get the place to market, disclose the work and negotiate with a buyer. We could embark on fixes now but contractors in our area are so busy post-covid, nothing will get done for 8 weeks...and everyone is having supply chain issues.
- On the issue of the realtor pushing the price to make more commission, I'm not realtor but if I was, that's not the way I'd do it. I'd set the price below market to ensure the place sells and, if underpriced, this market will result in an over-ask bid. As someone that owned a business, that's the way I'd do it.

thanks again, updates to follow!
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Re: pricing our house?

Post by dogagility »

Thanks for continually responding, Gips. Your house will sell at some point. Hang in there!

The stated fact that the house needs work could be a red-flag for many buyers. Hopefully, you took this into consideration when selecting a price point.
gips wrote: Wed Jun 09, 2021 11:04 am - the house has been on the market less than a week. We only have one person looking at the house this weekend so our realtor is planning an open house.
The open house is not likely to get you much further, so your expectations should be low. The open house might be useful to your realtor to drum up more business for him/her though... :twisted: (You can tell that I never agree to have an open house when I'm the seller.)
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brianH
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Re: pricing our house?

Post by brianH »

gips wrote: Wed Jun 09, 2021 11:04 am - On the issue of the realtor pushing the price to make more commission, I'm not realtor but if I was, that's not the way I'd do it. I'd set the price below market to ensure the place sells and, if underpriced, this market will result in an over-ask bid. As someone that owned a business, that's the way I'd do it.
That is generally how agents do pricing. At a 5% commission, every 100K in price only nets about $1700 to the selling agent (100K * 2.5% B/S split - 1/3 of that to the broker.) It's far better for the agent to close deals quickly and move onto the next one. Studies have shown that when they're selling their own house, agents price it higher and it sits longer than when they are selling one for their clients - a damning display of their misaligned incentives.
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hand
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Re: pricing our house?

Post by hand »

For buyers stretched to capacity and borrowing the max just to buy a house, needing work, or even being outdated, can end up being more than a red-flag - paying for the required work can be a financial impossibility.

Many buyers need to finance both the house and all required upgrades and maintenance for several years with their mortgage.

When I was buying in a different market, I specifically looked for *needing work* to eliminate competition with marginal financials and drive down price.

Not sure you have great options:
1) Wait and hope someone bites
2) Lower the price
3) Quickly do some or all of the work required to fix/update and hope that when you return to market there is still great demand
4) Contract for the work to be done and hope buyers are willing and able to trust you and finance work in progress
regularguy455
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Re: pricing our house?

Post by regularguy455 »

gips wrote: Wed Jun 09, 2021 11:04 am thanks for all the feedback! To respond to specific suggestions:
- "look up sales over the past two years in your area, figure the average price per square foot and multiply by the square footage of your house." I've done this but given the rapid change to the market, really it's the last three months that are applicable. I came up with a number in the 9s and it seemed like she was going to push into the high nines. But then she pushed into $1.2, which almost resulted in a sale.
- the house has been on the market less than a week. We only have one person looking at the house this weekend so our realtor is planning an open house.
- If we don't receive an offer this weekend, we're going to reduce price
- the house needs work! We put off about $30k of renovations due to covid, most noticeably, the jacuzzi in the master bathroom doesn't work and needs to be replaced. We have an estimate which we received right before the pandemic to replace with a soaking tub.
- the feedback has been that it's a lovely home but the place needs a lot of work and first time buyers are nervous about taking on the work. The advice from our realtor was to get the place to market, disclose the work and negotiate with a buyer. We could embark on fixes now but contractors in our area are so busy post-covid, nothing will get done for 8 weeks...and everyone is having supply chain issues.
- On the issue of the realtor pushing the price to make more commission, I'm not realtor but if I was, that's not the way I'd do it. I'd set the price below market to ensure the place sells and, if underpriced, this market will result in an over-ask bid. As someone that owned a business, that's the way I'd do it.

thanks again, updates to follow!
This sounds almost exactly like what happened to us. Priced more than what we expected. Lots of initial interest and literally no showings on the weekend. Monday we setup an open house for the weekend. We were going to drop the price but showings started to trickled in. I’m guessing buyers wanted to try and get it before it had a wide audience. Got 2 offers (one slightly over ask) and went under contract on Thursday.
presto987
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Re: pricing our house?

Post by presto987 »

I get the sense that the market is cooling off a little bit in some regions, in the sense that not all houses on the market are being snapped up after the first weekend of showings. This could be because the world has reopened, and buyers have other things they want to do besides house-shopping, so they are not all jumping for showings immediately.

If this is the case, then I think it's OK to be a little patient before dropping the price. You may still get interested buyers trickling in.
rich126
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Re: pricing our house?

Post by rich126 »

I don't know how much of this was fishing for a desperate buyer or what but last night I was looking at some homes in Arizona. One house was originally listed at $680,000. It didn't sell. And now it has been lowered to $599,000.

I don't work in real estate but in my experience it is very rare to see a drop of $81,000 on a house price (12%). I'm guessing it was vastly overpriced for that area of Arizona (Surprise).

I heard from a friend who said his daughter sold her house (Washington) but at list price. No bidding war.
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JDCarpenter
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Re: pricing our house?

Post by JDCarpenter »

hand wrote: Wed Jun 09, 2021 11:36 am For buyers stretched to capacity and borrowing the max just to buy a house, needing work, or even being outdated, can end up being more than a red-flag - paying for the required work can be a financial impossibility.

Many buyers need to finance both the house and all required upgrades and maintenance for several years with their mortgage.

...
And even those who are not stretching can be very hesitant to buy a place needing work. Our son and his wife are in contract on what I would consider a small, cramped 2000 square ft house in a nice san fran neighborhood. It just finished a hardcore, to the studs, rehab. If they had bought a house needing that amount of work, they would have needed to deal with a contractor shortage, juggling the project with their jobs, and juggling it with the impending arrival of a baby. Thus, they were pleased to pay a bit of a premium for showroom condition. (I, otoh, couldn't imagine buying a similar place for 1/4 of what they paid--but location, location, location....)
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Supergrover
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Re: pricing our house?

Post by Supergrover »

smitcat wrote: Wed Jun 02, 2021 12:18 pm
gips wrote: Wed Jun 02, 2021 11:47 am
BogleFan510 wrote: Wed Jun 02, 2021 9:15 am Any negotiation of commission rates? Curious.
it was 5 per cent, with anyone else i would have pushed but with a friend, didnt bother.
You were hoping for offers by Sunday night, how is it going so far?
Inquiring minds want to know!!
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gips
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Re: pricing our house?

Post by gips »

we have no offers, tomorrow we have one appt and then an open house this weekend. I'm fairly pessimistic that we'll receive an offer this weekend, will probably drop the price on wed.

best,
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RickBoglehead
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Re: pricing our house?

Post by RickBoglehead »

gips wrote: Thu Jun 10, 2021 7:22 pm we have no offers, tomorrow we have one appt and then an open house this weekend. I'm fairly pessimistic that we'll receive an offer this weekend, will probably drop the price on wed.

best,
The purpose of an open house is for a realtor to gain new clients. Inviting just realtors is different of course.
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dogagility
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Re: pricing our house?

Post by dogagility »

gips wrote: Thu Jun 10, 2021 7:22 pm we have no offers, tomorrow we have one appt and then an open house this weekend. I'm fairly pessimistic that we'll receive an offer this weekend, will probably drop the price on wed.
Thanks for continuing to update, gips. Keep your head up. Try to lose the emotional attachment (if you have one) to a certain price. Your house will sell at some point.
The more flexibility you have the less you need to know what happens next. -- Morgan Housel
folkher0
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Re: pricing our house?

Post by folkher0 »

gips wrote: Thu Jun 10, 2021 7:22 pm we have no offers, tomorrow we have one appt and then an open house this weekend. I'm fairly pessimistic that we'll receive an offer this weekend, will probably drop the price on wed.

best,
I was a recently a buyer in the NYC market. I can tell you that if you price it significantly above zestimate and comps, buyers will expect something immaculate. If they see “stunning” photos and then show up to find the place needs substantial work they will ask why they should pay a premium and move on.

Fwiw only two houses in my neighborhood went up for sale this year, both sold for above listing price. But in the last few weeks I am seeing more “price decreased” emails from Zillow and Redfin. That may just be seasonal as the more desirable houses got picked up in the spring. Who knows?
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gips
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Re: pricing our house?

Post by gips »

dogagility wrote: Fri Jun 11, 2021 5:39 am
gips wrote: Thu Jun 10, 2021 7:22 pm we have no offers, tomorrow we have one appt and then an open house this weekend. I'm fairly pessimistic that we'll receive an offer this weekend, will probably drop the price on wed.
Thanks for continuing to update, gips. Keep your head up. Try to lose the emotional attachment (if you have one) to a certain price. Your house will sell at some point.
thank you for the encouragement, I have found it is hard to stay positive after receiving an offer at ask and then losing it. honestly, the difference btw $900k and $1.2 is not life changing for us, in the end we’d be thrilled to walk away with $900k net
smitcat
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Re: pricing our house?

Post by smitcat »

gips wrote: Fri Jun 11, 2021 7:48 am
dogagility wrote: Fri Jun 11, 2021 5:39 am
gips wrote: Thu Jun 10, 2021 7:22 pm we have no offers, tomorrow we have one appt and then an open house this weekend. I'm fairly pessimistic that we'll receive an offer this weekend, will probably drop the price on wed.
Thanks for continuing to update, gips. Keep your head up. Try to lose the emotional attachment (if you have one) to a certain price. Your house will sell at some point.
thank you for the encouragement, I have found it is hard to stay positive after receiving an offer at ask and then losing it. honestly, the difference btw $900k and $1.2 is not life changing for us, in the end we’d be thrilled to walk away with $900k net
"I have found it is hard to stay positive after receiving an offer at ask and then losing it"
The loss rate from offer to contract is very high.
Even the loss rate from contract to closing is higher than most would think if they have bought or sold infrequently.
In these most recent times (past 6 months) we have seen many offers on both the buying and selling side that do not get completed - more than we have ever seen in the past.
mkc
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Re: pricing our house?

Post by mkc »

smitcat wrote: Fri Jun 11, 2021 8:14 am
"I have found it is hard to stay positive after receiving an offer at ask and then losing it"
The loss rate from offer to contract is very high.
Even the loss rate from contract to closing is higher than most would think if they have bought or sold infrequently.
In these most recent times (past 6 months) we have seen many offers on both the buying and selling side that do not get completed - more than we have ever seen in the past.
Agree.

We live in a small neighborhood which has had 2 homes (of 9) go up for sale in the past year. One had a deal collapse a week before closing and then sat on the market for another 8 months. The second went through 2 contracts within 3 weeks of listing, both deals failed and sellers have taken the house "off market".
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MillennialFinance19
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Re: pricing our house?

Post by MillennialFinance19 »

This has happened frequently where we live. Agents (or sellers) are posting homes with over-inflated prices. They get 10+ showings IMMEDIATELY and then everyone realizes it's just not worth the asking price, so they move on. You should do an immediate price reduction if you're legitimately ready to sell your home! Good luck!
For the love of God, stick to your plan!!!
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