Author Topic: Condo Sale, Timing, Price and Strategy  (Read 2020 times)

Jenie

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Condo Sale, Timing, Price and Strategy
« on: July 20, 2016, 10:34:03 PM »
Hi guys,
I put my condo on the market 65 days ago, 1 low offer, declined, a good amount of showings. Working with an agent. After not selling for so long, I decided to look for other agents. Most stated we have overpriced the property and have to lower price significantly and ask for a higher % and an initial fee of around $350 to $500. I am aware of DYI, but don't think I will go that route.
I am worried now about timing, relisting, etc. If I relist with a new broker, I will have to  1) lower price 2) pay a bit higher commission (not too significant, but still) 3) lose some market time but + new representation.
Worries about when the market will pick up as it is a bit slow now, but not sure if it will keep going strong or crash soon. I know it depends on the area as well.
Would relisting again and using a new agent have lots of negatives vs staying with the same agent and having the listing age to 90+ days?
Any advice is welcome. I have omitted lots of info to avoid specifics, but if any questions, let me know. Thanks so much MMMs.

Choices

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Re: Condo Sale, Timing, Price and Strategy
« Reply #1 on: July 21, 2016, 01:20:26 AM »
Most of the time you sign a contract with your listing agent that you can't list with someone else within x months, often 6 months.

Have you spoken with your agent about this? He/she might let you out of the contract, but if there is good advertising and you're having showings and offers, why not just lower the price with the same agent?

MakeSmarterDecisions

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Re: Condo Sale, Timing, Price and Strategy
« Reply #2 on: July 21, 2016, 08:26:44 AM »
Same advice as Julie above. If the property is not priced right, the chance of it selling is slim unless it has some amazing features or gets just the right buyer.

Jenie

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Re: Condo Sale, Timing, Price and Strategy
« Reply #3 on: July 21, 2016, 12:14:00 PM »
Julie, the realtor will let me out of the contract. We've spoken a lot about the issue. Week 0 and 3 to 4 showings/week and no offers at all outside of the one.
We lowered it once and no major changes + or -. Thanks y'all!

Rubic

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Re: Condo Sale, Timing, Price and Strategy
« Reply #4 on: July 21, 2016, 12:54:38 PM »
Your price is too high.

I was in the same position.  My agent listed my condo at a too high price based on comps and because we're in a hot market.  After 30 days with no offers, I dropped the price, then 30 days later dropped it again.  Got a signed contract within 2 days of the second price drop (just this week).  If your current agent is generating a lot of showings and you're otherwise happy with them, I'd consider just lowering your price.

I don't regret making an attempt to sell my condo at a higher price, but once the market has spoken it's important to listen.

Choices

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Re: Condo Sale, Timing, Price and Strategy
« Reply #5 on: July 21, 2016, 01:31:39 PM »
Julie, the realtor will let me out of the contract. We've spoken a lot about the issue. Week 0 and 3 to 4 showings/week and no offers at all outside of the one.
We lowered it once and no major changes + or -. Thanks y'all!
Condos can be tough. I took a huge loss on one a few years ago. It was bigger and better quality with better features than the ones down the street, but they were brand new and mine wasn't. When I bought it, it was the only complex around, but when I sold it, there were at least three more complexes nearby and it's hard to convince people that new isn't better.

It was hard to stomach, but a property is only worth what someone will pay. If it isn't selling, the price is too high.

I did switch realtors once because the first one had the square footage and number of bathrooms listed incorrectly (too low) all over the internet. Even after I brought it to his attention, he didn't fix it. The second realtor fixed this mistake immediately.

CowboyAndIndian

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Re: Condo Sale, Timing, Price and Strategy
« Reply #6 on: July 21, 2016, 02:47:04 PM »
Lots of good stuff here.

Trying to sell a condo in downtown Philly, and I think we made all the mistakes mentioned (too high an initial price, especially).

Hope this one sells...

Rubic

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Re: Condo Sale, Timing, Price and Strategy
« Reply #7 on: July 21, 2016, 03:13:29 PM »
Condos can be tough. I took a huge loss on one a few years ago. It was bigger and better quality with better features than the ones down the street, but they were brand new and mine wasn't. When I bought it, it was the only complex around, but when I sold it, there were at least three more complexes nearby and it's hard to convince people that new isn't better.

<rant />

Same situation and frustrating.  My condo is showroom gorgeous: real hardwood floors, tiled bathroom/kitchen, marble, original brass fixtures ...

But especially the younger 20's crowd appear to be more interested in newer condos.  From a distance, these newer units look great.  However when I step inside them, I'm appalled at how cheap everything looks: laminate flooring, plastic molding, concrete hallways, lightweight interior work which feels like it's made of cardboard ...


MakeSmarterDecisions

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Re: Condo Sale, Timing, Price and Strategy
« Reply #8 on: July 21, 2016, 05:43:40 PM »
Younger folks watch a lot of shows that get them in the mindset for "looks good" - not quality. It's a shame because they often figure it out later - when they have a big mortgage and can't do much about it.

Jenie

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Re: Condo Sale, Timing, Price and Strategy
« Reply #9 on: July 21, 2016, 10:41:46 PM »
Thanks everyone for the feedback and the opinions!
Overall opinion is lower price? Wait how long?
I am not in a hurry to sell, but worried about market timing and how RE will behave in the next couple of months. I know none of us have the crystal ball, but still I appreciate everyone's input here. Thanks again!

Goldielocks

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Re: Condo Sale, Timing, Price and Strategy
« Reply #10 on: July 21, 2016, 11:04:42 PM »
Your price is too high.

I was in the same position.  My agent listed my condo at a too high price based on comps and because we're in a hot market.  After 30 days with no offers, I dropped the price, then 30 days later dropped it again.  Got a signed contract within 2 days of the second price drop (just this week).  If your current agent is generating a lot of showings and you're otherwise happy with them, I'd consider just lowering your price.

I don't regret making an attempt to sell my condo at a higher price, but once the market has spoken it's important to listen.

+1

Bonus -- extending your contract with your agent won't be as long of a commitment as signing with a new agent.   

MakeSmarterDecisions

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Re: Condo Sale, Timing, Price and Strategy
« Reply #11 on: July 22, 2016, 07:02:08 AM »
Since you are not in a hurry to sell - that certainly helps your position. I look at real estate all the time online and when postings start showing "age" - it does make me wonder as a potential buyer what problems there may be. Is it the high price tag - or are there other issues with the house? Sometimes I wonder what a low price might do - could you get multiple offers that could bring the price up higher than what you could do by having a higher price and bringing it down every few weeks? (Hope that makes sense!) Just a thought!

Another Reader

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Re: Condo Sale, Timing, Price and Strategy
« Reply #12 on: July 22, 2016, 08:06:37 AM »
Everything is negotiable, including listing contracts.  However, it's often not the agent, but the seller that is the problem.

The rule of thumb in real estate price adjustments is if you are having no showings, you are listed 10 percent or more above market value.  If you are having showings but no offers, you are at least 5 percent above market value.  That appears to be where you are.

The other rule is price fixes everything.

Sit down with your agent ASAP and review everything that has sold or gone under contract in the last 60-90 days.  Also review the active competition from a buyer's perspective.  What are the pluses and minuses of your property?  Can you fix what's wrong inexpensively?  Are there issues that can't be fixed?  Can you market the pluses better?  If your agent won't do this or cannot come up with a competent analysis of the market for your property, you need a new agent.