So before you jump on me, my property is priced at $3.7M but its been listed since november and we've had around 20+ showings and 1 serious offer which fell apart bc the buyer had issues bringing over the money from italy. The high end market has slowed down, but the property is actually cheaper than some comps in the building on a per foot basis and actually has a very nice view. The problem is when I signed it, I agreed to a 1 year listing bc the realtor is a friend of mine and has sold 3 other properties for me in the past no issues, but I think this price range is over her head in terms of marketing,etc. Anyways its been 7-8 months already and Im getting tired of it and want to go to a bigtime realtor who I think can get it sold. The issue is there is a .5% cancellation fee if I cancel and list with another agent. Listing ends in november. Any help you can offer me would be appreciated.
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
You have to know how to market the property. Often when I'm dealing with properties in this price range, I'm advertising it in Christies international real estate magazine. I'm contacting every agent who does business as this price point to see if they have buyers. I'm contacting agents in other metro areas to see if they have buyers for a 2nd home in my city. There's a little bit more leg work to be done. 3D virtual tour is typically a must, as you might get a long distance buyer who can't preview the property. Agent bonus to buyers agent can help too.
Involved In Real Estate · Naples, FL · Member since 2014 · 68 posts · 34 votes
9y
I would suspect it is overpriced or is a very nice home but not in nice surroundings. When something lingers on the market that long, price is generally the reason.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
9y
I think you answered your question.
Talk to her and express what you conveyed in your post. Thank her for the other 3 sales. Let her know your feelings that it may be the market, and don't point blame. Then work to negotiate the 0.5% cancellation fee. What I'd do... I'd pay her 0.5% IF the new broker can't get it sold at $3.7M by November -or- offer her $10K to cancel. It's a compromise. Let her pick. I am assuming you have a good working relationship and want to keep it that way.
My 2 cents.
That 'bringing over the money from Italy' was a funny one.
It's actually in the nicest high rise in the entire city and its priced actually 3% higher than a same floor plan unit on the 15th floor closed for in january and im on the 32nd floor. I know the high end of the market has cooled down, but the unit is fairly priced I just feel my realtor should have gotten it sold by now
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes
9y
What is the realtor doing for you besides having entered the listing in the MLS? I would use the answer to this question in comparison to other realtor's answers to see if you get better value elsewhere.
Test your realtor: What comps have sold recently and how do they compare to your property? If you call your realtor and get an answer like, "Ugh.....let me dig through the MLS" then you know she doesn't have your property and market on top of mind.
Ultimately, it's staging and price. Make your property look great in the pictures, at the curb and inside; priced right - even aggressively if need be. Can the staging be improved? Listing it high with the plan to go lower in negotiation can work, but can also put you out of buyers' range. Consider a lower price and plan on less negotiation.
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
You have to know how to market the property. Often when I'm dealing with properties in this price range, I'm advertising it in Christies international real estate magazine. I'm contacting every agent who does business as this price point to see if they have buyers. I'm contacting agents in other metro areas to see if they have buyers for a 2nd home in my city. There's a little bit more leg work to be done. 3D virtual tour is typically a must, as you might get a long distance buyer who can't preview the property. Agent bonus to buyers agent can help too.
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
9y
The luxury listing market requires much more targeting and finding because it is tough in the 3.7m range now all around. There is usually other inventory so buyers have more options and can ask for more. 20 showings in 7 months on a 3.7m is actually pretty solid. The question you need to ask, seconding @Russell Brazil, is what are you doing to market the property? Who are you reaching out to? What areas of buyers have you targeted? Are you looking internationally? If they can answer these questions and have answers to their plan to make the last 5 months of the listing agreement go better than the first 7 months, you should be ok especially since they have done 3 deals for you already. The first reason for properties that are not selling is price. Not value, price based on what the current market says versus what else is on the market.
You might suggest she co-lists it with a listing agent who is familiar with that price range. I know if someone came to me with a 3.7M property I would not know where to start so I would grab an agent familiar with that range (Because it is out of my knowledge base) and co-list it.
Another option is to ask her to refer you to an agent who works in that space. That way once it sells she still gets a referral fee (out of their portion not yours). You still pay the same amount, but because she brought the deal to another agent (Even if you picked that agent) she will get her piece and it won't cost you more. I've given up referral fees to relocation companies or other agents to make things work and let them walk away.
It's actually in the nicest high rise in the entire city and its priced actually 3% higher than a same floor plan unit on the 15th floor closed for in january and im on the 32nd floor. I know the high end of the market has cooled down, but the unit is fairly priced I just feel my realtor should have gotten it sold by now
"... the unit is fairly priced ..." The market seems to disagree with you.
"Overpriced" is not always judged by the comparables. Sometimes, it's simply "over-priced for its condition". It may need updating or something else about it might not have the appeal to attract buyers in the current market, even (especially) for a high-end property.
Real Estate Agent · Los Angeles, CA · Member since 2017 · 95 posts · 76 votes
9y
Personally, I think marketing can only do so much. Listings at that price point always sit longer than average, so one-year listings are common in Los Angeles, and it sitting for 8 months isn't odd to me. I've had million dollar listings sit for almost 18 months before selling. In one instance, two were actually neighbors and after 10 months, they both sold in the same week. In another case, I had a $4m listing expire after 6 months and the sellers hired another realtor. Within a week, it sold to a buyer who had actually looked at the property while I was the listing agent. I strongly believe in timing. It may also be as simple as your property being overpriced.
Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
9y
Danny N. - 1 year seems reasonable. Why don't you call your agent and say... I'd really like to sell my condo in the next 60 days. What are your ideas?
For your own thoughts - maybe your agent is already working hard. What actions has your agent taken to market it or update the marketing over time? Staging? Professional pictures? MLS/Realtor.com description? Ads bought? Calls made? Catered lunches or open houses?
Do you live there? Is it vacant? Is it furnished? Can you make some money via Airbnb or similar between listing appointments while you're waiting for it to sell?
Residential Real Estate Broker · Crystal Lake, IL · Member since 2012 · 124 posts · 94 votes
9y
Disclaimer: I have never sold a million dollar property nor have I done anything more than drive through Houston.
...But 3.7 mil seems awfully high for Houston Texes. NY, LA fine. But Houston? I don't even blink an eye hearing that a 3.7 mil property hasn't sold in 8 months... anywhere, let alone Houston. Nothing against the place, I enjoyed Texas when I was there, but it's not known for high end real estate.
A simple question to ask your agent, is the issue time or money? Is it over-priced or have you simply not connected with your buyer yet? I had 2 listings recently where my quick-trigger finger was telling me to lower the price, but I resisted asking the owner for the price change and we sold for 98% of asking prices. So we were not over-priced, just needed patience.
Hey guys, thanks for the recent replies, I hadn't checked this thread in a while but I got some alerts in my email.
1) Natalie - it is professionally staged, its designer decorated: couches from Ligne Roset, kitchen is all gaggeneau appliances and boffi cabinets, it really can't get anymore high end. I bought the place new in 2009 and spent $270k furnishing it with a decorator and installing my own cabinets and appliances.
2) Eddie - Houston is the 4th largest city in the country, I cant believe you said that and honestly believed $3.7M was only for LA or NYC. There's plenty of homes in houston in the 77019,77024 zip code that are in the $5-15M range. In the condo segment where mine is, it is up there, but its not so bad for 4600 sq ft. Obviously in Houston most would prefer a large home for that price, but there are still plenty that prefer condo lifestyle with no home headaches but there's one for sale right now over $5M in my building a little bigger
3) David - Like I mentioned mine is many floors higher as a comp that sold a few months back that was basically stock from the developer, mine is upgraded significantly and higher, but of course that's irrelevant now as that one sold at the time and ours has not.
There's really no rhyme or reason in this end of the market, I don't expect a quick sale from my realtor but it has been nearly a year, at some point you just begin to blame the person in charge of selling it for not marketing it properly,etc. The condo doesn't allow open houses, so that is a slight issue, but there certainly has to be other ways to market such a property.
Again I was just trying to see how enforceable this .5% penalty is bc we're nearing a point where the listing will expire so I could let that happen, but Im just not interested in a nearly $20k penalty, and at this point the last showing was June 4th, we're on July 5 right now. I feel like no showings in a month is ridiculous, sure the property isn't for everyone, but if you can't get one person a month in the door, are you really trying? Im her only listing too fwiw, well forgive me, she has 2 that are sub $500k, I figured she'd be doing everything imaginable to get this sold.
Residential Real Estate Broker · Crystal Lake, IL · Member since 2012 · 124 posts · 94 votes
9y
Danny, this is an interesting discussion, thanks for getting it going! Let me clarify my comment earlier. I am fully aware that Houston is a large American city, and as such there are a lot of million dollar properties. My point is that they are much more rare in Houston than other locales. I googled this article that says you are trying to sell a property at about 23 times the median price in Houston. By comparison that same price in LA is only 7 times the median, and 10 times the median sale in NY, and that matters. The farther you are from the norm, the more difficult the sale.
In my market, at the price range of 3-4 mil there have been 84 sales in the last year... out of 939 listings taken. The odds of selling are less than 10%. I can't imagine Houston, or any other city would be significantly different. These are simply the numbers in black and white. Just food for thought!
Real Estate Agent · Staten Island, NY · Member since 2015 · 64 posts · 21 votes
9y
@Eddie Egelston that was great "food for thought" as you say , like the way you put the numbers out there and let it speak for its self.
@Danny N. it sound like a long time too sign a contact for a year. In nyc its 3-6 months avg I would say . I would just sit down with your agent and express your feeling and thoughts and ask her to put together a new plan , also ask to be involved in the new marketing and and so on, But let the agent lead the way as it is her field of experience.
Real Estate Agent · Los Angeles, CA · Member since 2017 · 95 posts · 76 votes
9y
Have you reduced the price? If you haven't, the listing has gone stale which explains why the number of showings have reduced. Reduce the price so that you'll pop up again on the MLS, and it'll show potential buyers you are motivated to sell/willing to negotiate if necessary. You can blame her all you want but if the building doesn't even allow open house, then she's definitely limited in her options and I'm sure she's trying her best. If you seriously doubt it, sit down and have a conversation with her. You're on month 8. If you're that adamant about not working with her, do you really want to pay $20k to fire her or be patient and just wait 4 more months until it expires on its own?
I find this hard to believe, but I just checked zillow for "recent sold"... and here are the statistics:
in the past 2-3 years, a total of 1 condo sold over $3M...There are currently 15 listed on the market, that is an inventory for 30 years....
Great idea in checking the comps. Expanding further on $3 million plus condos in Houston,...the fastest one to sell via public sources was in 303 days, the 2nd fastest at 447 days, and the longest at 972 days with the others falling in between the last 2 numbers. Of course pocket listings wouldnt show up in an MLS search
Real Estate Broker · Houston, TX · Member since 2017 · 33 posts · 8 votes
9y
Hopefully this question isn't too rudimentary... I just wanted to address accessibility.
How easy is it for a prospective buyer to schedule an appointment to view your property? Is it an accompany only listing? Is access into the property easy for a qualified & represented buyer? Sometimes the simplest, stupidest logistical nonsense keeps the buyers who want to see your place from getting in. There are always other places to see. Some people may opt to just skip the showing that's a PITA to schedule. Ridiculous? Yes. Does it happen? Yep.
There are several reasons it might not be moving, most of all have already been mentioned. More than likely it isn't moving due to something already mentioned above but no use beating a dead horse.
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
9y
The real question @Danny N. is: do you really want to sell or are you looking for the biggest payday and can sit and hold a 3.7m property? Properties in this price range will sit as everyone has noted from the Houston stats, but to be sellable at any price range you need to buck the market by either price or amenities. It's very difficult to separate yourself in a high-rise condo when there are similar units and layout that will become available. It sounds like you have done some very nice upgrades, but always remember that your 270k spent isn't always the same 270k that your buyer would have spent. It may be worth a lot less to them. If you want to take this money and use it for several other investments, talk to your realtor and friend and come up with a price reduction and marketing strategy that you can both agree on for the rest of the listing. It is not uncommon for this price point to stay on a year, especially in a high-rise since everything is similar for the most part.
