average of one showing per week, and no bite?

Question

My home has been on the market since May.  We didn't get much feedback until about 3 months ago when I lowered the price to about 88/sq feet.  On a given week, it is one of the lowest price on the market in my neighborhood ( my source is zillow).

According to Zillow, I have about 63 people 'favorite' my home, and I now get around an average of 1 to 2 showings per week.  This has been going on for almost 2 months now.

So obviously, there is interest, but no one is offering.  I have only had 2 offers so far.  I one offer but they had a contgency that they sell their home first.  This is pending.  The other offer, would have net me a negative 8000, which I couldn't accept.

I don't know what else I can do to sell the house and minimize my losses or out of pocket expenses.

Staging: The home is currently empty so it's not the issue of it being 'messy'.  is it worth the effort to pay to stage the house?

upgrades: it's a basic home. 3 + office, 2 bathroom, carpet, stainless steel appliance, laminate countertops.  I know there is an opportunity to upgrade, but will it make a huge difference and worth the cost?  The current sale price(after agents commission) will already net me a negative 3000, and like I said, it's already the lowest priced in the neighborhood.

the entire backyard fence is missing.  This is due to my recently evicted tenants.  Is it possible that the missing fence is turning people off, even though the price is so low?

John Thedford · Answer

Original carpet from 2006? Fence down? Looks sell! You have to fix cosmetic issues. This should be done before marketing if possible. I took a listing recently where the house showed REALLY bad. Customer could not be persuaded to fix things before the listing due to personal reasons. We still got a fast sale (due to price) but the feedback was horrible. Your agent should have advised you of this before listing it and if possible, had you cure cosmetic issues. People make judgments on looks....whether is it someone full of tattoos, someone with a ponytail, a beat up looking car, or a house needing paint.

Russell Brazil · Answer

@Dennis Lau Have you asked your Realtor for the reason it is not selling?  Often agents know why a house is not selling, but can be scared to tell a seller. Often times they do tell the seller, and the seller just does not want to hear it.

My inclination is that even though you are the cheapest in the area, you are likely still overpriced.  Without knowing the specifics of the neighborhood it is impossible to know for sure, but I would be a dollar to a donut that is the case. There are two main things that prevent a home from selling. 1) Price. 2) Condition.  We have a saying in our office, Price Cures All.  You may not be in a position to drop the price further, but that is the most likely way you will be able to move the property.

Kara C. · Answer

Could you provide a link to your listing so we can give some feedback?  I searched Zillow and Realtor.com for a listing at your price and didn't see anything come up in Norman with the square footage you mentioned.

Dennis Lau · Answer

it's listed at 156k currently. Home built in 06, 1883 sqft.  It is listed in the MLS.  Besides the appliances which are new, carpet paint is original from 06.  As far as sales, I see a couple recently sold in the last 2 months on zillow.

Todd Plambeck · Answer

What's the price point?  I had someone recently give feedback on a house I had listed for $130k that it needed granite counter tops.  At that price I laughed it off but over $175k, it is pretty much expected.  I'm basing that on Norman and Dallas prices being pretty much on par.  New carpet and paint?  It is listed on the MLS, correct?  How many other sales have there been in the neighborhood?

Charlie Fitzgerald · Answer

I think being the lowest priced house in the neighborhood can be a detractor to potential buyers, just as being the highest price can be.  It sounds like you have some minor improvements that could be made (fencing), that would enhance the attraction of the home to a buyer.  Staging at this price point, may or may not be a value.  If this were my house, here is what I would do:

1.  Repair the fencing

2.  Loop back to anyone that has seen the house and ask them what prevented them from making an offer.

3. Possibly stage it.

4.  Raise the price to the middle of the comp range for the immediate neighborhood.

5.  Consider other upgrades I could do to make the home more attractive and do them.

Price point sets buyer value perceptions in my opinion.  If it's the cheapest in the comps, buyers will think there is something wrong with it you are not telling them.  Right now, you are scratching for an exit that will lose you money and stop the bleeding.  It might be time to put a bit more blood in to a make a sale at a price that will make you whole or better.