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Drop the Price? |
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Should I lower my house price?
My house has been on the market for 90 days. During this time we've had about 15 showings and 1 low ball offer ($100K under asking price). Asking price is $799K. This is the second time we listed. We had a signed contract at $780K, but the deal fell through so we had to relist.
Our realtor is asking us to drop the price down to $750K. Our carrying cost for the house is $3,100 mo. and we can carry for 8 more months. My realtor is very doom and gloom about the market and has no creative ideas for marketing...simply list and advertize. I actually started contacting companies with corp relos and have generated interest on my own. I'm thinking of pulling the house offf the market for the holidays and then listing with another agent. What's your take and advice? |
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If you advertised the house for $2 it would sell today. And somewhere between $2 and $795,000 is a price that will bring a prompt offer. You just have to find it. You don't tell me how high your mortgage is, but remember that your carrying cost includes not just mortgage, taxes and insurance, but also lost income from the equity you have tied up in the place. Of course, on the other hand, you'll have some expense living elsewhere, I assume. You can see I don't know enough about your whole situation--or the real estate market in your town -- and some of this is in the end a personal decision on your part.
But I do feel that your agent is recommending a fairly moderate price adjustment, and my advice would be to try it immediately. It's not creative marketing ideas that will sell your house. If it's multiple-listed, and other brokers know about it, you're getting proper exposure in the market. You'll simply have to drop the price till you reach a level that attracts offers. If I understand you right, you're going to run out of money in eight months. I don't think you can afford to take the place off the market, and there aren't as many buyers looking in the dead of winter. Don't waste any time. Keep the same agent, who is giving you proper advice, keep the place on the market, and experiment with price drops till you find the right figure. Good luck. |
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Edith Originally published on October 30, 2007 |
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