Listing price: reduce or be patient!

68 Replies

Originally posted by @Kyle Glasgow :

@William C.

772 Linnard St

Baltimore MD 21229

 WOW!  Amazing job on the finishes.  Exterior leaves a bit to be desired but that's no secret.   What are homes doing within .25 of that address?  Your agent should be able to show you all the info you need to know regarding price.  Its so simple that people usually over complicate it and get it all wrong.

How many are for sale, renovated like yours?  How many are listed that need updating?  How many have sold in the last 60 days?  How many are pending right now?

I'll see if I can get some of these answers via Zillow, but just so everyone knows Zillow can't proivide 100% accurate info like the MLS and public records can so thats why an agent needs to pull the reports.

So, from a first glance it does not appear to be overpriced. Nice rehab, btw! (good pictures also)

you do have some competition, but some have been sitting a while (overpriced at listing):

https://www.redfin.com/MD/Baltimore/811-Mt-Holly-S...

https://www.redfin.com/MD/Baltimore/704-N-Grantley...

some more recent ones listed:

https://www.redfin.com/MD/Baltimore/742-N-Grantley...

https://www.redfin.com/MD/Baltimore/760-N-Grantley...

as far as sold ones that are comparable (i am not familiar with your area, so didn't venture too far):

https://www.redfin.com/MD/Baltimore/801-Wildwood-P...

https://www.redfin.com/MD/Baltimore/1002-Lyndhurst...

https://www.redfin.com/MD/Baltimore/831-Mt-Holly-S...

again, i don't think you're overpriced. winter time and some competition nearby, imho. 

@William C. Redfin for the win! (took me less than 5 mins to do the above). Good luck doing this with Z ;)

OK.  I did 5 minutes of research.  And while I stand by everything I have said...Your market is a bit saturated.  There are many homes, like yours for sale.  So the big question is, how many buyers are there?  What is the absortion rate?

For sure, the first thing you need to do today is CHANGE your first picture on Zillow.  All the other are showing off there amazing kitchens, or nice front porches.  You need to show the positives, and at least dont put the negatives first.

Id take a look at this listing. Essentially direct competition.  I'd argue price is even MORE important to get right in a saturated market like this.  DOM is hurting.  For example, when i searched your neighborhood I got 77 listings, and your listing was buried below all the new listings it was around 20 on the list.  You need eye balls, then footsteps.  I would maybe take back that you are over priced per se, but you might be better served being $2000 underpriced, and sell 30 days sooner, save those holding costs, and get out of this thing, than you would be hanging on for top dollar.  Tough one Ill admit.   Really not the type of market I flip in.  I do have experience with buyers in that market though, I cut my teeth in similar neighborhoods in Philly.  Why not start dropping it 500 a day?  1000 a week?  gotta do something to get people looking at yours and not the others out there.  Cant do anything to make it nicer inside...gotta influence the market some other way.

776 Linnard St

Baltimore, MD 21229

Originally posted by @Victor S. :

So, from a first glance it does not appear to be overpriced. Nice rehab, btw! (good pictures also)

you do have some competition, but some have been sitting a while (overpriced at listing):

https://www.redfin.com/MD/Baltimore/811-Mt-Holly-S...

https://www.redfin.com/MD/Baltimore/704-N-Grantley...

some more recent ones listed:

https://www.redfin.com/MD/Baltimore/742-N-Grantley...

https://www.redfin.com/MD/Baltimore/760-N-Grantley...

as far as sold ones that are comparable (i am not familiar with your area, so didn't venture too far):

https://www.redfin.com/MD/Baltimore/801-Wildwood-P...

https://www.redfin.com/MD/Baltimore/1002-Lyndhurst...

https://www.redfin.com/MD/Baltimore/831-Mt-Holly-S...

again, i don't think you're overpriced. winter time and some competition nearby, imho. 

@William C. Redfin for the win! (took me less than 5 mins to do the above). Good luck doing this with Z ;)

 I came the exact same conclusions as you, on Zillow.  They are both public facing sites, so they both tell less than half the story.  It comes down to knowing how to use each site the right way.  But for the purpose of what we are doing its all we have.  

So now that we agree, that "at first glance" it doesnt appear to be over priced.  Why isn't it selling?

OP how many showings have you had?  4 might have been what was mentioned before.  What has the feedback been?  Is there anything they are pointing out as the one reason they don't want to purchase.  So we can argue overpriced or not all day, the bottom line I know the ONE THING that will sell that house today.  If you don't need or want to sell today, then Id agree, dont lower the price.  Sit tight.  Wait it out.  Best of luck

Maybe you guys that work in these markets with price points around 150k.  Does a price reduction of 5k move buyers off the fence?  In real dolllars what does that mean to a buyer.  They save $140 at the table in their down payment and their payment is now $20 less each month.   If I were a buyer in that price range, I'd be looking to stretch upwards to get something larger and nicer, and it will only cost me another $50-60/month.   

When payments are $1200/ month for $150k, and $1125/ month for $135k.  and 15k gets you 35% more sq ft.  What would you do?  

I am not trying to make any points here.  I am asking for your opinions. I am trying to think as a buyer would in these markets, so that I might be able to benefit as a seller.

Originally posted by @William C. :

OK.  I did 5 minutes of research.  And while I stand by everything I have said...Your market is a bit saturated.  There are many homes, like yours for sale.  So the big question is, how many buyers are there?  What is the absortion rate?

For sure, the first thing you need to do today is CHANGE your first picture on Zillow.  All the other are showing off there amazing kitchens, or nice front porches.  You need to show the positives, and at least dont put the negatives first.

Id take a look at this listing. Essentially direct competition.  I'd argue price is even MORE important to get right in a saturated market like this.  DOM is hurting.  For example, when i searched your neighborhood I got 77 listings, and your listing was buried below all the new listings it was around 20 on the list.  You need eye balls, then footsteps.  I would maybe take back that you are over priced per se, but you might be better served being $2000 underpriced, and sell 30 days sooner, save those holding costs, and get out of this thing, than you would be hanging on for top dollar.  Tough one Ill admit.   Really not the type of market I flip in.  I do have experience with buyers in that market though, I cut my teeth in similar neighborhoods in Philly.  Why not start dropping it 500 a day?  1000 a week?  gotta do something to get people looking at yours and not the others out there.  Cant do anything to make it nicer inside...gotta influence the market some other way.

776 Linnard St

Baltimore, MD 21229

 good suggestions (esp. on the first picture), William. Kyle, definitely make sure your agent is doing what he/she is supposed to. 

@Kyle Glasgow Nice rehab!  Was this a full gut?  I like the idea of pricing low to garner competing offers vs starting off with a big price bang.  I agree with @William C. on this one.  You know your bottom number, so maybe start slightly higher than that.  Pricing at 125K while other comps are 10K higher in that area will definitely get you more eyes and feet. 

@Kyle Glasgow

If you are eager to sell, please keep in mind the day you accept an offer is not the day you close and get paid. It can take anywhere from 2-6 weeks to close, and sometimes longer.

The time on market and escrow are difficult to gauge in your estimation be ause you are at the mercy of the market and buyers terms.

If you have the luxury I would wait, the seasonal real estate market is just picking up.

@Kyle Glasgow

Update!

I reduced from 137k to 125k price 1 week before the open house which was on 3/9. There were 5 viewings and no offers made. My agents next plan of action is a 7 days ad campaign on Facebook.

Was price really the issue?

Is it just the market/ high DOM area/ absorption rate?

Is there anything else that my agent should do?

Should I just BRRR?

Should I just have PATIENCE ?

"The average DOM is about 120 days."

You needed to plan for this during your due diligence on the property and make sure your cash reserves could cover it. No easy answers now - either be patient (if you can afford it) or drop the price and lose some/all of your profit and chalk it up to a learning experience.

@Victor S.

I will be ok financially for 120 days but I have to admit this was not considered while doing the due diligence.

Thanks for the info!

After next week definitely. Rearrange photos or take quality photos call those viewed and ask how it can present itself better.

@Victor S.

I’m at 51 DOM. There were 18 viewing this month so far but still no offers.

I will have the agent rearrange the pictures. I don’t want to lower the price just yet as this may give the impression that I’m desperate.

that means people like what they see. any feedback from their agents?

@Victor S.

We got some feedback: priced right, nice layout

One guy loved it but he didn’t like the block

@Kyle Glasgow gonna have to likely wait to sell another month or two or drop 10-20k to sell now

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