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So our house has been on the market for 3 weeks. We've had 2 second showings in the last 2 days (granted, those two lookers are the only hot prospects), and our realtor calls todya to say we should drop the price. Call me crazy, but I think if we drop the price before these prospects run their course, we look desperate. Thoughts? I feel like I'm completely disconnecting with realtor right now and don't know if its me or if its her.
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op: Do you really think that 25k on an 800k apt makes a difference in this market? Thats the part that is baffling to me. If it were 50-100k, it would make a lot more sense to me.
[ Reply | Options ]Yes, don't make small incremental reductions. We just bought a property that had been reduced from $870->$859 ->$839 -> $799 ->$749. We got it for $724. It had been on the market since February and I imagine the sellers were in agony over all those little cuts. If they had just initially put it on the market at $799, I think someone else would have scooped it up sooner.
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It's actually you. Brokers don't want to lower prices, but she may be basing her decision on what other homes in the area are closing at, which is info you may not have access to. Lowering prices is not in her interest, since it affects her commission in the end. Trust your realtor. They know *way* more about the industry right now than you do. Sellers these days tend to have an inflated idea of what their home will go for, because most bought when the market was at its high. It doesn't make you look desperate, it makes you realistic, especially if you legitimately want to sell.
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ok, so you didn't listen to the broker, and now the broker is trying to get you to do what s/he said initially. i'm not sure on what basis you ignored the broker's advice (which, presumably, was based on market comps), but having ignored it, you're in a difficult position. I would probably drop it eventually, and pursue the off-line conversations in the meantime.
[ Reply | Options ]op: we live in a quirky old neighborhood (not manhattan, btw) and we likewise looked at the comps. And FWIW, we bought our house a number of years ago, so we didn't over pay and we're getting activity since it has been on the market, we've just not gotten offers. Arguments apparently go both ways on this one. I feel off-line conversations are the way to go with the two currently interested folks.
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i wouldn't. then they're just motivated to wait and see whether you come down again. tell your broker that you're not going to lower, but that she should encourage them to make an offer and that you will consider all offers. I think it has to be on the market a bit longer than 3 weeks to warrant a price adjustment -- that seems to send all sorts of signals that you may not wish to send.
[ Reply | Options ]Do you know how much other units in your building are going for? Or how many are for sale? I live in a building with 11 available units, and I saw a $25,000 price drop after three weeks because the seller wanted $375K, when every other unit is going for roughly $300K. Unless you have access to that kind of info, I would listen to your realtor. After all, does she try to tell you how to do her job?
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Who came up with the original price, you or the realtor? If it was the realtor I'd disagree with the posts that say he/she knows the market better than you. If that were true the apt would have been priced correctly 3 weeks ago.
[ Reply | Options ]I love how everyone in Manhattan thinks they *know* the market better than someone who works in it everyday. Go armchair brokers! Even if it was priced too high at first, you're adjusting, and that's what you have to do in this market. Accept the fact that you may have paid too much for it to begin with, and go forward.
[ Reply | Options ]fwiw, i'm a recent buyer and here's my perspective. the people now are not going to buy unless it's a good deal. what i'd consider doing is to have the broker tell them "the seller really doesn't want this to turn into a big hassle and a long drawn out event. if it'll help seal the deal quickly, the seller is willing to go down several thousand dollars." that way the seller feels like he's getting a bargain but also doesn't feel he can drag it on indefinitely in the hope that you'll reduce again. good luck!
[ Reply | Options ]IMO, you WANT to look desperate. Probably you have to look desperate in order to actually get your house sold. That's the psychology of a buyer's market - the buyer doesn't want to be a schmuck that overpays. You have to make them feel like they're getting a HUGE deal so they can brag to all their friends about how you reduced the price twice and they still got 10% off, blah, blah. Ideally, you manage to do this without settling for significantly less than you wanted from the sale.
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