Need help figuring out why our house doesn’t have an offer and instead have heard a few ‘offers’ are coming with no follow up.
It’s a 6/5, 4300 sqft home in Smyrna, just 3 years old. We added a lot of upgrades when we will built it as well as over the last 3 years (accent tile in bathroom, irrigation, privacy fence, shiplap, professional landscaping). Our lot is great, level backyard and much larger than most newer builds now.
All the feedback has been ‘such a great house’, ‘incredible decorated’. There has only been 1 mention of house being too high at 649k. We have since dropped 10k and still no new showings or offers but 1. Would appreciate any advice.
@Jessica Johnston I am not familiar at all with your area, however, in looking at the house I see it has only been on the market for 44 days. Not sure how quickly homes at that price point typically sell there, but I can tell you luxury homes in my market (Chicago suburbs) and many others in the Midwest are sitting for many months before selling. The economy (at least in the Midwest) as a whole seems to be becoming leery of an upcoming recession and high end homes just don't seem to be selling nearly as quickly. If your house is appropriately priced compared to local comps and all the feedback has been positive, that may be what's occurring. Everybody loves to go look at a big beautiful home, but signing a contract and locking yourself into the payments is a different story. Good luck selling, it really is a gorgeous house!
No/few showings=greatly over priced
Plenty of showings with no offers=slightly over priced. People think they may want it for that price, but not after actually viewing. A $10k drop on $650k is insignificant.
As the others stated, the facts above indicate that it's a bit overpriced. And at that price range, your price drops will have to be much larger to move the needle. However, before you drop it...
The majority of the people interested in a house that size are going to be large families, and school still isn't out yet. In a month the number of buyers searching for homes is going to at least triple, so your showings will pick up in May for sure and you may even get an offer close to your asking price due to the summer feeding frenzy. There's a big difference between showings in April and showings in May/June.
Comps have been hard to find at this price point and size in the neighborhood. We had a realtor tell us appraisers will only use comps from the same elementary school. I had not heard that. We had a few potential buyers say they wanted a basement which we don’t have but we do have a 3rd story in-law retreat. There has been a lot of traffic and sales on homes that are around 530-550k but they are 1200 less Sqft than ours and 1-2 less bed/bath.
@Wayne Brooks You're spot on. My rule of thumb: If you're getting few or no showings, you're overpriced by 10% or more. If you're getting showings, but no offers, you're overpriced by about 5%.
Drop the price another $25k to help buyers see the value.
What a beautiful home. Simply stunning. If I had the money I'd live there in a heartbeat (and rent out the in-law suite, of course, haha)
I'm sure what others have said is true...its probably priced too high for the neighborhood/market. Which is a shame, some of the finishes I've seen in your home I've seen in much more expensive homes, but that's the way it goes. Nicest house on the block is not always a good thing.
@Jessica Johnston is drop the price 10k weekly/biweekly until you get an offer
I wish I can buy that house in my area for that price. It comes down to price and your local market. A 4200 sqft house has only so many buyers to choose from. I am sure that your house is on the upper end of the price range for the area and the avg day on market will be longer.
44 days I think you will need to do a price drop soon. Something around $25-40k. It has to be significant to drive more traffic to the house. A $10k drop will do nothing. Talk to your agent about the price. It's clear there is nothing wrong with the house it's beautiful.
@Jessica Johnston . It’s overpriced. Time to drop it 30-50k. At this point I would be ready to sell for slightly above the 570k you paid in 2016, and hope that’s enough to cover the agent commission. Typically if you sell property 3 years apart you’ll break even at best, especially in this price range
Hire a real agent who knows how to sell a house.
quality photos if its not selling its price.. most of the time.. also cant extrapolate SQ ft price to larger big box homes.
they always sell for less than smaller homes per sq ft.
5 comps, sold within last 6 months by the same builder as ours- all new but with no yards. One is same floor plan but smaller.
460 Rebecca Ln. 645k: (5/4 3749 sqft)
525 Beecham Dr. 649k: (5/5 4216 sqft)
512 Beecham Dr. 666k (5/4 3,380 sqft)
501 Tackett Farms Rd. 599k (5/4 3,740 sqft)
509 Tackett Farms Rd. 665k (5/4 3,529 sqft)
Those houses are new and will bring a premium to a used home. It's also hard to tell what the builder threw into the deal to keep the selling price high. He might have given 50k in upgrades. You are also competing against the builder. Drop the price to $599,900.
@Jessica Johnston a $10k price drop does not do anything, perhaps it shows that your agent is not very good.
Price strategy should be based on data and experience, we use a matrix to compare the specific performance of any given listing to a bench mark.
Good news is, you got showings, so you are "in the market" and probably within 10% of you potential sales price. If you were priced totally too high, you would not see showings. Based on 12 showings in a month our data would tell you to adjust the price 4% to 8%.
That may seem like a lot, but time is working against you and you will net more if you act quick. Chances are these 12 people have written offers on other listings, which they saw a better value in.
Best is always to price it right from the start and not have to adjust down. If you are not sure, invest the time and tour your top competition. Gauge their value compared to yours and track them as far as offers.
Your agent should be a major resource here and have data and evidence to support his opinion.
I can agree that a 10k price drop isn't going to attract any newer buyers or previous viewers. If trying to sell quicker, the price cut needs to be more aggressive, 25k+. 44 DOM isn't terrible at all so hang in there. Price range isn't for every home buyer and thins out the higher $ the home is, so give it time as well. This is prime time for selling homes and it's just started. Generally, if the home is beautiful and has great features and isn't selling, its price! It can be a tough decision to drop price but sometimes it is what helps to find a buyer. Good luck and awesome home, it will sell!
It seems like you are on the right track. I disagree with some of the posts on this thread.
1. You're getting showings. That is good. Shows that there is demand for the property and you're priced within reason. Overpriced properties often don't get showings.
2. Your realtor got positive feedback. That is good. Your realtor is asking for feedback. That also shows they are doing their job. Perhaps they can take it a step further. Ask for offers. Ask why they were positive, yet not making an offer. Getting them on the phone is another chance to make a sales presentation.
3. Formulas like "you are 5% underpriced because you're not getting showings." Is not an accurate way of looking at it. There are so many different properties, markets and locations.
Simply look at the comps (if there are strong comps). Look at the market time for these comps. If there is high market time and lots of competition, your good property might just take longer to sell. Look at the spread between list and selling price and the history of price changes for your comps.
4. If you are slightly overpriced, that doesn't mean people will not make offers more in line with the market. In soft markets, we get lower offers all the time. But generally, lowering your price does help.
5. Good marketing materials, such as pictures, are important. But that just gets them in the door. You don't have that problem.
I looked at your redfin link. It seems to be a newer subdivision and it is a newer house. So it shows well, but the competition is also similar newer housing stock. So your house may not stand out because it is too similar to the competition.
Nice house but.....
You have a few issues
1. Price talks a small drop of $10k does not do anything for a buyer. You might be a higher priced home on the market and its a big house, needs a big family to buy. What is the standard house in that area, you are not targeting first time buyers you are targeting move up buyers and what kind of options do they have compared to you.
2. How much other inventory in that price and size, might take more time to sell
3. If the house is the largest house on the block it might have a little bit of economic obsolescence, we all want bigger and better but does that translate to the majority of buyers.
Sit tight the right buyer will come around at the right price point you just might need to lower a bit to do so.
What is your motivation, do you need to sell? Do you have large carrying cost, and how many months can you go etc. IF it takes a year can you make it. ie Carrying costs $3500 x 6= $21k just FYI
What is the ideal time to sell - next 4 months - so get real tight and accurate on pricing otherwise you might slip into winter and have less buyers.
There are definitely nicer homes just in my neighborhood & right down the street but they were all new with mine & haven’t turned over yet. If I have to stay in same elementary school then my only comps are new construction. That has been the hardest part is figuring out what that premium was- if I need to knock 50k off because ours isn’t new, then can add it back because ours shows like new & is 1000 more sq ft? we are buying a new home end of May so ideally would sell ours around that time & not have to make 2 mortgages for too long.
I agree a 10K reduction is not a price drop. I know it is painful but it is nothing. In our market sometimes, when you want to make a small reduction more dramatic, they will bump it up 20K and then the next day drop it 50K. MLS will show a 50K price drop and people get intrigued. It can also make you seem desperate, so there is that.
But don't kid yourself that it has been all positive feedback. If one person mentioned price, you can bet several more were thinking it. And in the end, price is the key.
I don't know if it is overpriced, but buyers agents know the game. If it was only slightly overpriced, their agent would tell them no big deal, just make an offer. If it is a lot overpriced, they won't even bother making an offer because they think maybe you aren't realistic and won't negotiate.
But price aside, this is probably going to be the new normal. Historically, homes don't sell in 5 showings like they have been in recent years. Even if it is priced right, it takes months to sell a house in a normal market. What you are seeing is a reversion to the mean of normal market activity. Things are slowing down. Just not as much demand, especially in the higher end of a given market. Everyone is going to have to adjust expectations.
@Eric Michaels - Really like your idea of increasing the price and then dropping it again to make it more dramatic.
@Jessica Johnston - I think you just need to patient, but I do agree with the majority of other posts, $10k on $650k is only 1.5% drop. If you are getting showings and good feedback you just need to wait for the right buyer, it only takes one.
Originally posted by @Rob Massopust :
3. If the house is the largest house on the block it might have a little bit of economic obsolescence,
Sorry to nitpick, I am taking my exam and excited to use my new knowledge! I believe this is principle of regression, not economic obsolescence. People still want large houses, but when they are surrounded by smaller, it drags the value a bit.
Great advice on here. Give your agent the link to this thread...may help him/her. Very nice home! Loved everything besides your bathrooms (they have a masculine feel to me, White/Black). Just a personal note and I've heard this before from clients...Good luck on the sale.
Look likes the house is pending at $625k
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