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Answers (11)
- Jay Agoado, "jaysellshm"
- Contributions:218
The first offer, more often than not, is the best offer. I usually like to obtain a price reduction after 30 days on the market, and I feel that it must be a substantial reduction (5%). The problem with waiting is that the first 3-4 weeks is the prime marketing period for your listing. After that your listing becomes "tired". You need to do something to liven it up again and a price reduction is usually the way to go. Even though your agent recommended the price, maybe the market itself changed. Maybe inventory levels went up. Maybe other sellers reduced their price. Maybe there were some recent closed sales that justify lowering of your price. Ask your agent for statistics to justify the price reduction. Best of luck to you!
- Cheryl Talbot Real Estate, "Virginia Beach Homes"
- Contributions:674
What we see as a general rule is that the first offer is the best offer. If you have time and want to wait, counter back. If they don't bite, there may be others down the road. I will tell you this, it's a difficult market at best. If the home is priced right you shouldn't be getting low, low offers. Yet if it's overpriced, they are offering maybe what the market actually supports. Only time will tell. Good Luck!
- Heather Embrey ABR, SRS, GRI, "hembreyrealtor"
- Contributions:12
Sometimes a bird in hand is worth two in the bush. I would never just assume your Realtor is simply after a quick sale. After all, isn't that what you hired them to do - get a quick sale? If you question the value, you should order an independent appraisal to obtain an impartial value opinion.
Hope this helps!
Hope this helps!
- SoCal_Engr
- Contributions:5667
Since this was posted back in December, how're things going? When you say $60K, that's only half the equation. What % of list does that represent? Also, while $60K is not an amount I'd easily give up, what are your financial targets for the sale?
As for the REA? What was their response? Personnally, I'd kick the REA to the curb if they marketed one price to me and then pushed me to accept considerably less. If they think the market's soft, then the time to say so is up front...not after a listing agreement has been signed for a higher price.
- Adrian Provost, "RealEstate_NOW"
- Contributions:40
You don't seem to be in a hurry to move the property, so I would only lower the price when the market demands it. From what you noted in your post, that doesn't seem to be the case yet.
- Shawn Ryan Rosa, "sryan1980"
- Contributions:493
Yes, taking $60,000 less than asking price after just 10 days is certainly absurd. It leads me to believe one of two things: either the home was mispriced to begin with or the realtor just wants to make a quick sale. There is no other reason to explain why someone should take $60,000 less than asking price after 10 days (unless we are taking about a very expensive house ($700,000 or more perhaps)
- factualfallacy
- Contributions:2
Thanks for all the replies!
To answer your questions, Brian...
I was in the home in October. We had good renters in it, but they're moving out of state. I've done a little work on it in the last few months, too. The condition is good but not great. It needs new carpet throughout. I don't see the point in putting in granite counter tops and hardwood floors because I don't think I'll get a good return on investment. I explained this to my agent prior to setting the listing price. I know I can't get top dollar, which is why we priced it aggressively to begin with. Yes, I did receive information on what the homes were selling for in the neighborhood. Some have sold much higher, some a little higher, some a little lower. It's in a good neighborhood. There was a house that's a good bit smaller than mine and doesn't have some amenities that mine has (such as 3-car garage, sun room, a second lower driveway with basement access with a boat door and partially finished basement with full bath) that went for my asking price in July. It also needed things like new carpet. And, like I said, some have sold for $50k more than mine is listed for. I did counter the offer and came down 15k from the asking price, plus I offered closing costs. I haven't heard back, but I don't expect it to work since the potential buyers told my REA they could only go up 10k more than their original offer. Plus, I saw what they were approved for from the bank, and it's 85k less than the listing price. To be honest, I could live with $30k less than the list price, but another 30k is just ridiculous.
To answer your questions, Brian...
I was in the home in October. We had good renters in it, but they're moving out of state. I've done a little work on it in the last few months, too. The condition is good but not great. It needs new carpet throughout. I don't see the point in putting in granite counter tops and hardwood floors because I don't think I'll get a good return on investment. I explained this to my agent prior to setting the listing price. I know I can't get top dollar, which is why we priced it aggressively to begin with. Yes, I did receive information on what the homes were selling for in the neighborhood. Some have sold much higher, some a little higher, some a little lower. It's in a good neighborhood. There was a house that's a good bit smaller than mine and doesn't have some amenities that mine has (such as 3-car garage, sun room, a second lower driveway with basement access with a boat door and partially finished basement with full bath) that went for my asking price in July. It also needed things like new carpet. And, like I said, some have sold for $50k more than mine is listed for. I did counter the offer and came down 15k from the asking price, plus I offered closing costs. I haven't heard back, but I don't expect it to work since the potential buyers told my REA they could only go up 10k more than their original offer. Plus, I saw what they were approved for from the bank, and it's 85k less than the listing price. To be honest, I could live with $30k less than the list price, but another 30k is just ridiculous.
- Brian Teyssier, "Brian Teyssier GRI"
- Contributions:964
Thanks for posting your question on this forum "factualfallacy". Cute name.
Anyway, first question I have is when was the last time you were at the house? How do you know the condition of it, I assume the Realtor was in it so the Realtor would have a great idea of it's condition.
I cannot say I would go with the first offer but I would certainly counter it! Many times buyers go in low especially on vacant houses to "test the waters" to see how desperate the sellers are knowing full well they will have to come up.
I can tell you many a times sellers regretted not working with the first offer as once it disappears it can be gone forever with no other one coming. I understand you do not want to give it away but if you do not work with this offer, you could very well end up doing that 6,7,8,9 months from now.
The other houses are listed for a good bit more, huh? Who cares!? Home values are not determined on what is ACTIVE on the market but rather what is SOLD and closed. You should be comparing your home price to SOLD homes in the last 6 months. Your Realtor should have done a CMA and e-mailed it to you for you to see how that Realtor came up with that price. If they did not, demand it and ask how they came up with that price.
Rest assured, your Realtor wants to sell the house and get her commission, that is the goal BUT she also wants you to get a good price before market possibly goes even further down.
When should you consider lowering your price? According to CRS', the first 10 days to 2 weeks should be a seller's busiest. If you only got 2 showings in that amount of time, without even knowing your market, I can GUARANTEE you the price is too high. Maybe it is only $30k too high. Now the other $30k the buyer came in lower doesn't seem so bad now, huh? After a month a listing is considered STALE and needs a reduction. Do you want to wait another 20 days (that would be 4 more showings) to do a price reduction and have that first offer be gone forever?
Good luck, hope we helped out! Happy Holidays! :-)
Anyway, first question I have is when was the last time you were at the house? How do you know the condition of it, I assume the Realtor was in it so the Realtor would have a great idea of it's condition.
I cannot say I would go with the first offer but I would certainly counter it! Many times buyers go in low especially on vacant houses to "test the waters" to see how desperate the sellers are knowing full well they will have to come up.
I can tell you many a times sellers regretted not working with the first offer as once it disappears it can be gone forever with no other one coming. I understand you do not want to give it away but if you do not work with this offer, you could very well end up doing that 6,7,8,9 months from now.
The other houses are listed for a good bit more, huh? Who cares!? Home values are not determined on what is ACTIVE on the market but rather what is SOLD and closed. You should be comparing your home price to SOLD homes in the last 6 months. Your Realtor should have done a CMA and e-mailed it to you for you to see how that Realtor came up with that price. If they did not, demand it and ask how they came up with that price.
Rest assured, your Realtor wants to sell the house and get her commission, that is the goal BUT she also wants you to get a good price before market possibly goes even further down.
When should you consider lowering your price? According to CRS', the first 10 days to 2 weeks should be a seller's busiest. If you only got 2 showings in that amount of time, without even knowing your market, I can GUARANTEE you the price is too high. Maybe it is only $30k too high. Now the other $30k the buyer came in lower doesn't seem so bad now, huh? After a month a listing is considered STALE and needs a reduction. Do you want to wait another 20 days (that would be 4 more showings) to do a price reduction and have that first offer be gone forever?
Good luck, hope we helped out! Happy Holidays! :-)
- Dawn Maillet, "Dawn Maillet"
- Contributions:49
Two showings in 10 days is fairly decent traffic in the holiday season. That to me would indicate the pricing is appealing to buyers. I would hold tight for 30 days and see how many showings I get. Make sure your realtor has some open houses and realtor caravans so that the other realtors SEE the property. It's easier to sell what you've seen. If the showings dry up after these efforts have been made reduce your price slowly but regularly to demonstrate that you are a motivated seller. Good luck!
- Gina Hesse, "GinaNCRealtor"
- Contributions:8
If the CMA indicated a fair price the Realtor thought the home would sale for then I would not accept an offer for $60,000 less than that. You should counter the offer and try to negotiate a fair price. Unless the holding cost of the property is a hardship for you I think 10 days is too soon to accept what you feel is such a low offer.
- Cindy Schlee, "Cindy Schlee"
- Contributions:22
Hi - I would wait 30 days to lower the price of your house, then ask your agent what he/she are doing to sell your property. Ask them to show you their marketing plan. If there is no plan...the house won't sell in a timely manner at a reasonable price. The main reason houses don't sell is due to the price. If the comps indicate your house has a chance to sell at a higher price then stick with it. You may want to speak with another agent in the mean time and ask their opinion. I wish you luck.
Cindy Schlee
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Cindy Schlee
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