on the ass-end of both RE markets

[thisisjeopardy]

We moved from Chicago to New England. We listed the condo a couple days into March just after we moved to the Boston area. Then COVID-19 hit.

We've been living in a temporary leased apartment while my wife works her new job (now, from home) and me working (kept same job, remotely as usual) and FINALLY found not only a home we can agree upon, but one we really like.

Problem is, everything up here goes so far, it is a crazy seller's market. We went 10k over the ask and got it. Meanwhile in Chicago our condo has had 25 viewings and not one offer. It's in a great area, not one complaint about price.

Not ready to panic yet, we don't need the equity to close on this house but want to stop paying on an empty property and the equity will replace the savings (a little over 150k put down).

I guess if this thing still doesn't sell by fall we'll have to hire a management company to rent it out. Maybe before then we'll take it off the market for a week and put it back on to bump it on all the RE listing sites.

Not really asking any questions here, more of a rant :) Is it me or does it seem the longer a property is listed, the less it seems valuable? as in "What's wrong with this place if it's been up for several months?"

[FINate]

You are correct, time on market works against you. But it's all relative and depends on how long similar homes sit. It may be normal for a high-end luxury unit to take 6+ months to find the right buyer, whereas median priced units may be expected to go into contract in 1-2 months. But this also depends on overall market conditions.

Without more details it's difficult to know what's going on. If it's in a good area, and you have a good agent (professional photos, MLS listing, good marketing) then, well, it's probably the price. Prospective buyers don't generally complain about the price, they will just move on, especially if there are plenty of similar units for less.

The reality is that it's only worth what someone is willing to pay. Will you get your asking price if you hold on for 3 more months? Maybe, maybe not. In the meantime you carry all the holding costs. Generally, you have to delist for 30 days before relisting to reset the days on market and rebump in the listing sites.

IMO, a meaningful price drop would be more effective, as this will also bump the listing sites and it may get more people to look at your property. It's usually better to price slightly lower than the market, but not too much or people will think there's something wrong with it. If you generate enough interest you may even end up making a multiple party counter offer, which can motivate buyers to make their true best and final offer.

[thisisjeopardy]

IMO, a meaningful price drop would be more effective, as this will also bump the listing sites and it may get more people to look at your property. It's usually better to price slightly lower than the market, but not too much or people will think there's something wrong with it. If you generate enough interest you may even end up making a multiple party counter offer, which can motivate buyers to make their true best and final offer.

Hi, thanks for the response. It's in a neighborhood next to everything, a "walkability score of 91/100" I know, that's an arbitrary number, but right by light commuter rail (1 stop from downtown Chicago), multiple CTA stops, bars, restaurants everywhere. We don't have a parking spot though which seems to be the problem. Also the 1.5 bath kinda hampers the roommates not couples living scenario (heard one buyer was looking to rent another BR to subsidize mortgage, but having to share a shower was not ideal).

Perhaps if I drop 10k-15k, which would be a substantial amount, that could induce an offer, maybe two. Thanks for the idea.

[FINate]

IMO, a meaningful price drop would be more effective, as this will also bump the listing sites and it may get more people to look at your property. It's usually better to price slightly lower than the market, but not too much or people will think there's something wrong with it. If you generate enough interest you may even end up making a multiple party counter offer, which can motivate buyers to make their true best and final offer.

Hi, thanks for the response. It's in a neighborhood next to everything, a "walkability score of 91/100" I know, that's an arbitrary number, but right by light commuter rail (1 stop from downtown Chicago), multiple CTA stops, bars, restaurants everywhere. We don't have a parking spot though which seems to be the problem. Also the 1.5 bath kinda hampers the roommates not couples living scenario (heard one buyer was looking to rent another BR to subsidize mortgage, but having to share a shower was not ideal).

Perhaps if I drop 10k-15k, which would be a substantial amount, that could induce an offer, maybe two. Thanks for the idea.

One other thing to consider: It's weird, but people have psychological barriers around big round numbers. So if you're thinking of dropping to something like $405,000, you're probably better off going to $399,000. This will also get you into more search results because people tend to filter results at these round numbers.

Good luck, and best wishes!

[nippycrisp]

Buying a place during Covid, and doing so before selling your old place are some very aggressive decisions that appear to have bitten you a little bit. It can't be too much of a surprise that people aren't looking to buy right now. Between the economic uncertainty and Chicago's ongoing pension- and debt nightmare, it can be very challenging to sell at a good price (source: bought and sold Lincoln Park real estate).

Covid will continue to be around for at least another year. If the economic effects and high unemployment persist, taking your medicine and selling cheap soon could be preferable to selling even cheaper later. If you want to bet that the issue is more transient, waiting and eating two mortgages might be better. You could also try renting now for a year, and then selling. 

FWIW, I'd personally not buy right now either, but that's not really what you're talking about here.