Author Topic: Days on Market - 90 Days to Reset  (Read 1344 times)

RyaninLA

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Days on Market - 90 Days to Reset
« on: March 09, 2018, 08:23:22 AM »
After my tenants moved out late last year, I put my Capital East DC 1/1 condo up for sale beginning of November. It's the lowest price listing in the zip code, so I thought it would sell quickly, even in the off season. We've only received a handful of lowball offers. I'm actually thinking the price might be too low. Now passing 90 DOM, I'm considering pulling it off for 90 days to reset the clock and relist at peak season. With staging in place, cost to carry is $2250/mo. Assuming this will total $7k, would you recommend taking it off market and relisting mid-June? Any other pro tips would be appreciated!

https://www.realtor.com/realestateandhomes-detail/420-16th-St-SE-Apt-203_Washington_DC_20003_M69480-91152

Guess I should also add that I've worked with my agent in the past and have been impressed with her. I'm open to changing but don't think that's the source of my problem.

Mother Fussbudget

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Re: Days on Market - 90 Days to Reset
« Reply #1 on: March 11, 2018, 09:45:17 AM »
Unfortunately, with tools like Zillow, it really doesn't matter whether you take it off the market for 90 days anymore.  Online tools will still track when the property was 'listed', 'price change', etc.  IMHO, if you're going to take it off the market and re-price, it doesn't pay to have it off the market for the Spring buying market.  Keep the 'off market' time short.   All the best! MFB

RyaninLA

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Re: Days on Market - 90 Days to Reset
« Reply #2 on: March 11, 2018, 03:25:37 PM »
Unfortunately, with tools like Zillow, it really doesn't matter whether you take it off the market for 90 days anymore.  Online tools will still track when the property was 'listed', 'price change', etc.  IMHO, if you're going to take it off the market and re-price, it doesn't pay to have it off the market for the Spring buying market.  Keep the 'off market' time short.   All the best! MFB

Thanks @Mother Fussbudget. My agent met with the broker and they also recommend keeping it listed, so I think that's what we'll do. I'll try to keep patient and hopeful!

LANCELOTNYC

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Re: Days on Market - 90 Days to Reset
« Reply #3 on: March 11, 2018, 06:12:12 PM »
After my tenants moved out late last year, I put my Capital East DC 1/1 condo up for sale beginning of November. It's the lowest price listing in the zip code, so I thought it would sell quickly, even in the off season. We've only received a handful of lowball offers. I'm actually thinking the price might be too low. Now passing 90 DOM, I'm considering pulling it off for 90 days to reset the clock and relist at peak season. With staging in place, cost to carry is $2250/mo. Assuming this will total $7k, would you recommend taking it off market and relisting mid-June? Any other pro tips would be appreciated!

https://www.realtor.com/realestateandhomes-detail/420-16th-St-SE-Apt-203_Washington_DC_20003_M69480-91152

Guess I should also add that I've worked with my agent in the past and have been impressed with her. I'm open to changing but don't think that's the source of my problem.

Sorry to hear that it's not selling! Just curious, if it's not selling why would you think the price is too low? IMO the market is much softer this year now that rates have been increasing.

tralfamadorian

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Re: Days on Market - 90 Days to Reset
« Reply #4 on: March 11, 2018, 06:49:04 PM »
Unfortunately, with tools like Zillow, it really doesn't matter whether you take it off the market for 90 days anymore.  Online tools will still track when the property was 'listed', 'price change', etc.  IMHO, if you're going to take it off the market and re-price, it doesn't pay to have it off the market for the Spring buying market.  Keep the 'off market' time short.   All the best! MFB

I watch several small markets pretty closely that I'm interested in and this is not universally true. I see houses that I'm sure have been listed before whose full history does not show up on their Zillow page. Maybe there is some access that some agents have to requests history edits? IDK

HawkeyeNFO

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Re: Days on Market - 90 Days to Reset
« Reply #5 on: March 12, 2018, 08:03:15 PM »
What good is it to remove it from the market?  It's March.  If you think the price is too low, discuss this with your realtor.  Maybe raise the price a little, but don't take it off the market right now. 

The next 90 days are the peak selling season in DC.  You put it on the market at about the worst time of year, but now is the beginning of the best time of year.  If you don't have any reasonable offers by May, that would be the time to start changing your selling tactics.

RyaninLA

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Re: Days on Market - 90 Days to Reset
« Reply #6 on: March 13, 2018, 08:14:00 AM »
What good is it to remove it from the market?  It's March.  If you think the price is too low, discuss this with your realtor.  Maybe raise the price a little, but don't take it off the market right now. 

The next 90 days are the peak selling season in DC.  You put it on the market at about the worst time of year, but now is the beginning of the best time of year.  If you don't have any reasonable offers by May, that would be the time to start changing your selling tactics.

Thanks @HawkeyeNFO. I'm trying to do my best and defer to my agent and trust in her expertise (not exactly a strength of mine). I think your recommendation is the right thing to do, so I'll keep patient for now. On an unrelated note, congrats for surviving catt shots in such a death trap ;).
« Last Edit: March 13, 2018, 08:18:28 AM by RyaninLA »

RyaninLA

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Re: Days on Market - 90 Days to Reset
« Reply #7 on: March 13, 2018, 08:17:44 AM »
Unfortunately, with tools like Zillow, it really doesn't matter whether you take it off the market for 90 days anymore.  Online tools will still track when the property was 'listed', 'price change', etc.  IMHO, if you're going to take it off the market and re-price, it doesn't pay to have it off the market for the Spring buying market.  Keep the 'off market' time short.   All the best! MFB

I watch several small markets pretty closely that I'm interested in and this is not universally true. I see houses that I'm sure have been listed before whose full history does not show up on their Zillow page. Maybe there is some access that some agents have to requests history edits? IDK

@LANCELOTNYC @tralfamadorian Yes I think people can see the listing history, but what I'm realizing is that buyers (and sellers probably) are very illogical. If they see a high DOM or price drops, they think the property has a flaw and is less desirable. So even if they eventually look at this history and see it was listed over the winter, its the DOM that they see initially.

waltworks

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Re: Days on Market - 90 Days to Reset
« Reply #8 on: March 13, 2018, 09:13:51 AM »
To be fair, the DOM for your place *does* indicate a lack of demand for the property (at least at the current price). I don't think potential buyers are being "illogical" to assume that the price is too high or there's some issue.

I think you just need to drop your price.

-W

RyaninLA

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Re: Days on Market - 90 Days to Reset
« Reply #9 on: March 13, 2018, 07:15:52 PM »
To be fair, the DOM for your place *does* indicate a lack of demand for the property (at least at the current price). I don't think potential buyers are being "illogical" to assume that the price is too high or there's some issue.

I think you just need to drop your price.

-W

:)

MayDay

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Re: Days on Market - 90 Days to Reset
« Reply #10 on: March 15, 2018, 08:32:18 PM »
Looking at the pictures, it is very cute.

My only comment is that your kitchen sink is freakishly tiny. If I had ten condos to look at, I would probably knock it off the list (or mentally adjust the price) because of the sink.

Have you gotten comments from any of the showings?

The legality and your requirements to inform buyers vary by location,but what about adding some security cameras to listen while buyers tour the house?

Are the condo fees especially high?

RyaninLA

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Re: Days on Market - 90 Days to Reset
« Reply #11 on: March 18, 2018, 10:13:07 AM »
Looking at the pictures, it is very cute.

My only comment is that your kitchen sink is freakishly tiny. If I had ten condos to look at, I would probably knock it off the list (or mentally adjust the price) because of the sink.

Have you gotten comments from any of the showings?

The legality and your requirements to inform buyers vary by location,but what about adding some security cameras to listen while buyers tour the house?

Are the condo fees especially high?

Thanks @MayDay for the points to ponder. I'll think about getting the pics retaken -- the sink is decently sized but if it looks freakishly small then I'm sure others have the same thought.

The only comments relayed by my agent are that the buyers wanted more living space versus the large walk-in closet. Of course, these are just from the opens that she hosts, so maybe not a lot of honesty about the negatives. Condo fees are around $350, which is on the low end because the building doesn't have amenities. A lack of amenities appealed to me because I don't think they age well, but maybe that's a negative for most buyers. There are also newer units available nearby and I'm thinking that strong buyers might prefer those.

I love your idea of planting a bug (it IS Washington DC), but I seriously doubt my agent would do that.

Dicey

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Re: Days on Market - 90 Days to Reset
« Reply #12 on: March 18, 2018, 11:35:32 AM »
First off, your listing photos are confusing. Show it furnished (my preference) or unfinished, but not both. Reshoot so your kitchen sink looks normal, as has been noted. Get rid of the photo where the door to the master closet looks extremely narrow. What's up with the shoe racks? Fix them and reshoot. Nobody willing to pay top dollar wants to fix anything.

You may be used to paying $350 in HOA fees, but a lot of people aren't. What does it include? I don't use realtor.com much, so if it's there somewhere, that's good, but make sure it's obvious. If they are significantly lower than the competition, mention that too.

Any extra storage? What's the parking look like? What about laundry facilities? Also, the exterior of your front door and the inside of the lobby and common areas of the building should be shown [Edit: I looked again and I see the quad and bbq. Good start. Show more + photos trump artist's renderings.] Small one bedrooms are a notoriously hard sell. If your potential buyer is likely coming from out of the area, helping them "see" the full picture will generate more interest.

The price you get for any property is only what someone else is willing to pay. You are too high, drop it by what it will cost you carry for the next 2.5 to 3 months and get it sold. You won't be losing anything in the long run.

We own rentals and are always looking for our next property. (DH is searching today's listings and open houses as I write this.) I laugh my ass off when people play the lapsed listing/raise the price game. Do they think buyers are stupid and have no memory? It almost never ends well, plus you end up with a stale listing. That's usually where we search first.

Don't get me wrong, the place is cute and the bones are good. All of my suggestions are minor and easy to execute. You could do these things and have the place sold in snap, which is better than letting it drag out for months. Good luck!

[Further edit: Zillow shows you've dropped the price once. Raising it would be suicide, IMO.]

One more edit: the mirror in the bathroom is not good. Can you replace it with an inexpensive (but not cheap looking) framed mirror? That's what buyers want. (Gag, but true.)
« Last Edit: March 18, 2018, 11:59:45 AM by Dicey »

RyaninLA

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Re: Days on Market - 90 Days to Reset
« Reply #13 on: April 04, 2018, 07:48:52 PM »
Dicey love the straightforward suggestions! Sorry I let the thread go quiet for a while. The tips are a little easier to swallow since I'm two weeks into escrow. Nothing, nothing, 120 days, nothing then BAM! three offers over asking in one day. I accepted one $16k over asking.

Thanks to those who suggested keeping it listed (everyone). I think if I had to do this over again, I wouldn't have separated the parking spot out of this listing to show a lower price to attract bargain buyers. Crazy but it seems to be that the seasonality was the issue, so my biggest lesson is that it would be better to take a 6 mo tenant at a steep discount than to list empty through the cold season.

Still could fall out of escrow, but everything looks good at the halfway mark!
« Last Edit: April 04, 2018, 08:06:12 PM by RyaninLA »

RyaninLA

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Re: Days on Market - 90 Days to Reset
« Reply #14 on: April 04, 2018, 07:53:54 PM »
...and maybe as a buyer, I'll only hunt in the off-season. If my buyer had hit me up one week earlier, she could have saved $25k.
« Last Edit: April 04, 2018, 08:05:49 PM by RyaninLA »

Dicey

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Re: Days on Market - 90 Days to Reset
« Reply #15 on: April 04, 2018, 10:35:49 PM »
Nice update! I've been wondering how you were doing. I actually thought my post had disappeared, because I couldn't see it. I'm thrilled that you got your price and then some.

I've been busy since you posted, too. We're one week into escrow on our next flip project. We've been looking for over two years. Nothing, nothing, nothing, then boom! We had a house and a deal.

Fingers crossed for each of us to close in a timely manner.

RyaninLA

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Re: Days on Market - 90 Days to Reset
« Reply #16 on: April 05, 2018, 08:16:01 AM »
Nice update! I've been wondering how you were doing. I actually thought my post had disappeared, because I couldn't see it. I'm thrilled that you got your price and then some.

I've been busy since you posted, too. We're one week into escrow on our next flip project. We've been looking for over two years. Nothing, nothing, nothing, then boom! We had a house and a deal.

Fingers crossed for each of us to close in a timely manner.

@Dicey nice work! My next planned purchase is Fall/Winter 2019 for a buy-and-hold SFR. I can't imagine looking for two years -- I'll have to up my patience for the next purchase.

Dicey

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Re: Days on Market - 90 Days to Reset
« Reply #17 on: April 05, 2018, 11:08:51 PM »
Nice update! I've been wondering how you were doing. I actually thought my post had disappeared, because I couldn't see it. I'm thrilled that you got your price and then some.

I've been busy since you posted, too. We're one week into escrow on our next flip project. We've been looking for over two years. Nothing, nothing, nothing, then boom! We had a house and a deal.

Fingers crossed for each of us to close in a timely manner.

@Dicey nice work! My next planned purchase is Fall/Winter 2019 for a buy-and-hold SFR. I can't imagine looking for two years -- I'll have to up my patience for the next purchase.
The thing is, we didn't know it was going to take so long either. We just kept looking. When we finally found the right one, we decided on the spot. We knew we were getting a good deal, even if it is going to be a crazy amount of work.