Should I Reduce My Listing Price For My Primary Residence?

Question

Hi All,

I am selling my primary residence in Gibsonton, FL (about an 20 mins away from Tampa) because I just got a new job and I'm moving. The comps for my SFH is $386,000. Originally I listed it for $392k and..... crickets. On 8/7/22 I reduced the price to $374k and I've gotten some showings, but still no offers. The house has been on the market for 24 days now and I am getting somewhat impatient because I am moving on 9/2/22. Should I reduce the price further? What's the best way to get the house sold? Also, I do have a real estate agent.

Joel

Bill B. · Answer

Whoever suggested listing above comps started the problem. You were above comps so it didn’t sell. It sits so people assume there’s a problem. Then you lower the price so they assume if they wait longer you’ll lower the price again. You shouldn’t be on the internet looking for answers, your agent should have them.

It almost has to be the price or the advertising (quality or placement). You can always check with Opendoor, offerpad and any of the other ibuyers just to get an idea of what your easy option is. It might not be time to replace the agent but it’s certainly time to have a talk with them.

Kristina Kuba · Answer

@Joel Polanco

In my experience, if you are getting a reasonable amount of showings, but no offers, it is not likely the price because you are getting traffic.

Is your agent reaching out for feedback using the Showtime app and process?  Are there noisy neighbors, a busy street, a smoking odor in the house?  You just never know why buyers are turned off but your listing agent has to dig deep.

Also, how is the listing agent marketing your listing?  Gone are the days you could just throw it up on the MLS and expect multiple offers.

For me personally, when I list a home in Tampa I do the following

• Market it on instagram with pictures and videos ( I am always surprised at how many leads I get through social media).
• I reverse search the MLS and write done every agent that has sold a home in the last 6 months in the neighborhood and call them personally and let them know about this listing
• I hold a brokers open so other agents are walking in and seeing the property and getting their buyers involved early on
• Many home buyers do not have a buyers agent, so many times they will call the listing agent directly and I have to be ready to show the home in a moment's notice.
• I knock on the homes 5 to the left, 5 to the right and 5 across.  That is 15 neighbors.  Many people want their family, children or relatives to live close to them so that could spark interest and generate buzz.

These are just my personal strategies. They have worked for me. Nevertheless, the market has slowed in this region, so I would not be alarmed that it has not sold in 24 days.

Feel free to reach out if you have any other questions.

Ryan Wallace · Answer

Talk to your agent and make sure they are getting good feedback from those that are viewing the property. Most markets around the country have slowed significantly in the last few months. I am pricing listing more aggressively and instructing clients to wait at least 30 days before considering a price cut. Buyers have the ability to be picky right now. Instead of doing another price cut consider offering a rate buy-down for the buyer. This has helped numerous buyers get over price/ market anxiety.  Give it extra time and be patient. Good luck.

Scott Trench · Answer

I agree with the sentiment that your agent should be straight with you and tell you what is going to happen. Maybe consider interviewing additional agents? We have a bunch in Florida at the "Find an Agent" button.

Luke Rorech · Answer

@Joel Polanco

Cut once and cut deep.

Josh Green · Answer

When it comes down to it, I 100% echo what @bill said above.  Supply and demand is the metric that drives prices for everything.  Interest rates go down, buyers can afford more, so that same median buyer can now afford a more expensive house.  Median house goes up in price to match/adjust to what the median buyer can afford.

The market is still very hot historically - 20 days on average to sell and the historical average in a balanced market is 60+ days so we're still 3x faster than a balanced market.  Just like @Bill said, the starting price should be LOWER than the comps in order to drive up the demand and create an auction.  Listings with reduced prices that don't sell tend to be a combination of what Bill said: too high to begin with and buyer sentiment (wants to lowball, thinks you're overly desperate to sell, etc).

This is now the time to re-evaluate the curb appeal, interior staging, listing presentation appeal, increase open houses, and consider a upfront credit to buyer to re-attract customers.

Madison Wilson · Answer

Joel, congratulations on listing your primary! This market has definitely slowed from what we saw during COVID when it seemed everything was a cash competition. Hopefully, your agent can provide insight on comps in your area and days on market, to get a clear picture of realistically how quickly your local market is moving with interest rates recently rising. I am unsure of the market in Tampa, but hopefully your timing works out for your move. Keep an open mind, as other comps may be sitting at the same amount or longer during this time. Best of luck!

Michael Haynes · Answer

Hello Joel Polanco, The thing that people do not do on BP when they ask for help, is to leave out the address of the property. I can get on Zillow in five minutes and know all I want to know about a house for sale in Gibsonton with the address. 35 years ago my Agent found me three Duplexes and some houses and all of them had bad Advertising. There were two lots with structures and only one was pictured. They would show one picture of the inside...the toilet. The outside showed all the uncut lawn in the back, full of trees that needed major trimming. One thing that I found out as I spent the last ten years selling all my Rentals in S. Tampa, is that if you give your property to an Agent, they want to just list it on MLS. That leaves out all the Buyers that don't bother to look at the MLS. Most of my properties were sold by me, with and without a Sign, even if I had an Agent who would allow me to not pay their Commission if I found a Buyer. If you tell the BP guys what your address is, then, maybe one of them will run over there and make you an Offer, since you are the Definition of a Motivated Seller. Or get another Agent in Brandon if your Agent does not talk with you on a Daily basis and have showings cause they live in St. Petersburg...what are you thinking of? If the other fifteen houses For Sale in Gibsonton are selling from $275 to $300,000, then you have to go below that. My last house was sold to a company in Tampa that pays Cash in 30 days, at just under Market prices, to Rent. Not a Wholeseller. When the 2008 Collapse in our Economy happened, my Stock Trading friend had just bought a Penthouse apartment in South St. Petersburg for $250,000 Cash. His mother was in the Phillipines and she worked with properties. She warned him that there was imminent disaster to come and he started lowering his price $5000 a Week until it sold for $150,000. I paid $175,000, Cash a year ago for a like new Townhome in Valrico and my Agent is the oldest in Brandon, if you want to give Ann Lee a call.

Jared Prevost · Answer

Hi Joel,

It's unfortunate your agent suggested that pricing strategy. I have two suggestions for you that may help, one to help you in the future and one to help you get the highest possible purchase price now.

How to find success in a property listing in the future: When an agent suggests a selling price, ask to see the comparable sales. A good agent will base your sales price on comps that have sold within the previous 6 months and ideally pending sales. They will also adjust for some of the following: type of build, year built, pool / no pool, if there's an ADU, business of the street, lot quality, etc. Jamil Damji has a really good 'Straight Outta Compin' series that's a great resource on how to comp. I would also scrutinize a realtor's strategy if they don't intend on finding ways to get buyers very excited about a property. Retail buyers don't want to pay for a property they don't fall in love with.

How to get the highest purchase price for your home now: If you're looking to sell cash, interest rates are working against you. A huge portion of retail buyers no longer qualify based on their debt-to-income ratio. However, you can leverage higher interest rates to get more for your property. If you're willing to carry a note on the property (allow someone to make you payments over time) you can ask significantly more for the property, receive interest on the payments, and dramatically increase your buyer pool. If you don't own the home outright, a wrap could make a lot of sense if the loan you have in place is at 4% or less. Pace Morby has great videos on YouTube about wraps if you're curious. This type of strategy isn't for everyone, but it will typically get you the most money for the property and can be among the most tax efficient strategies

Should I Reduce My Listing Price For My Primary Residence?

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