When should I consider coming down on condo asking price?
March 29, 2012 8:48 AM Subscribe
I'm selling my condo. How do I make it stand out from the other 5 condos for sale in my complex? When should I consider coming down on the asking price?
I've had it on the market since end of January. I've had three showings with positive feedback, but all are still looking around to see what else is out there. The area is in a great location, with a lot of positives (surrounded by expensive homes/neighborhoods, nice rental/apartment complexes, grocery, coffee, etc.). A great (and bad?) thing is that the condos were built in mid-1980's, but the ones who are selling are all at very good asking prices (90K - 110K range). I'm in the middle. I'm definitley not trying to make a profit, I just want to pay off the mortgage and pay my realtor. My condo is very clean, neat and uncluttered, like I said, I'm getting good feedback, but it takes more than a vacuumed rug and shiny countertops to sell a place these days. I don't plan on doing anything else major to the place (like, replacing the AC unit or washer/dryer - they're old but they work). Is this my mistake?
I may be getting a bit antsy, since now there will be 5 of us trying to unload our condos, with one right below me! I've contacted my realtor. I'm feeling as if I need to start thinking about coming down on price. I can afford to come down to about 91K (I'm at 100K currently). Realtor just told me last week that she was considering asking me about coming down, but since we're heading into prime showing time, maybe we should hold off for now. Now, one week later, I wonder if I should. Even though it's still March. By the way, I'm in Raleigh, NC.
Any thoughts, suggestions, recommendations? Or do I need to just chill? Thanks much!
I've had it on the market since end of January. I've had three showings with positive feedback, but all are still looking around to see what else is out there. The area is in a great location, with a lot of positives (surrounded by expensive homes/neighborhoods, nice rental/apartment complexes, grocery, coffee, etc.). A great (and bad?) thing is that the condos were built in mid-1980's, but the ones who are selling are all at very good asking prices (90K - 110K range). I'm in the middle. I'm definitley not trying to make a profit, I just want to pay off the mortgage and pay my realtor. My condo is very clean, neat and uncluttered, like I said, I'm getting good feedback, but it takes more than a vacuumed rug and shiny countertops to sell a place these days. I don't plan on doing anything else major to the place (like, replacing the AC unit or washer/dryer - they're old but they work). Is this my mistake?
I may be getting a bit antsy, since now there will be 5 of us trying to unload our condos, with one right below me! I've contacted my realtor. I'm feeling as if I need to start thinking about coming down on price. I can afford to come down to about 91K (I'm at 100K currently). Realtor just told me last week that she was considering asking me about coming down, but since we're heading into prime showing time, maybe we should hold off for now. Now, one week later, I wonder if I should. Even though it's still March. By the way, I'm in Raleigh, NC.
Any thoughts, suggestions, recommendations? Or do I need to just chill? Thanks much!
If your finances (and the condo regulations) allow, you could expand the pool of potential buyers by being open to a rent-to-own deal or holding paper on a portion of the debt. If it's weird for five of the units to be on the market simultaneously, perhaps you should rent it for awhile and then sell when there's less competition.
posted by carmicha at 8:58 AM on March 29, 2012
posted by carmicha at 8:58 AM on March 29, 2012
It takes on average 5+ months to sell a place. You jumped the gun a bit on a January listing -- it is just not getting into the selling/buying season. The days are getting sunny and the trees are blooming!
I notice that savvy realtors will lower the price by $100 so it then puts the property at the top of Zillow searches for "recently lowered." You may increase your traffic that way.
My vote is to chill out. Just make sure you house is aired out, spotless carpets, no rugs, no excess furniture, NO pictures of family/pets/vacations/etc -- NONE, no hanging diplomas on the wall, bake cookies the morning before showings and leave them out...
posted by LeanGreen at 9:03 AM on March 29, 2012 [1 favorite]
I notice that savvy realtors will lower the price by $100 so it then puts the property at the top of Zillow searches for "recently lowered." You may increase your traffic that way.
My vote is to chill out. Just make sure you house is aired out, spotless carpets, no rugs, no excess furniture, NO pictures of family/pets/vacations/etc -- NONE, no hanging diplomas on the wall, bake cookies the morning before showings and leave them out...
posted by LeanGreen at 9:03 AM on March 29, 2012 [1 favorite]
Best answer: Have you tried painting your walls? If you paint your kitchen an orange or red, the bathroom a warm blue/green, the living room yellow, etc...that can REALLY help. You want the viewers to walk inside your home and instantly fall in love. A new washer/dryer or beautiful stove can help sweeten the deal. The key is to make the buyer picture themselves in the house/condo, and appliances can help. Small upgrades all throughout will cost less but make a huge impact. For example, you could put beautiful tiles in the kitchen or change the living room to hardwood. Other options are adding some moldings or updating your light fixtures/fans.
posted by 200burritos at 9:04 AM on March 29, 2012 [1 favorite]
posted by 200burritos at 9:04 AM on March 29, 2012 [1 favorite]
Best answer: If you don't want to plug money into it, you are going to have to beat them on price. No other way around it. If your place does not stand head and shoulders above the others for some other reason (nice paint job, new flooring, premium appliances, etc.) people will choose the cheapest option. Have you considered upgrading the appliances? There is a Sears Outlet Center on 401 south of Raleigh that has very good deals on lightly scratched or dented appliances. If you can throw a stainless fridge and dishwasher in when the other units have older appliances (or none included), you can make your place very appealing to people who don't have the cash to buy new appliances while buying a condo.
I work at the NCSU vet school, and I could put a flyer up for you on a couple bulletin boards, if you can email one to me. If your place is nearby, there are always new students/residents/employees looking for cheap condos.
posted by Rock Steady at 9:09 AM on March 29, 2012
I work at the NCSU vet school, and I could put a flyer up for you on a couple bulletin boards, if you can email one to me. If your place is nearby, there are always new students/residents/employees looking for cheap condos.
posted by Rock Steady at 9:09 AM on March 29, 2012
Response by poster: All terrific bits of input, and quickly! Thank you.
@Rock Steady - I actually considered that as well. The condo is VERY close to NCSU campus...Thank you very much for the offer to post - I'll get a flyer to you.
posted by foxhat10 at 9:22 AM on March 29, 2012
@Rock Steady - I actually considered that as well. The condo is VERY close to NCSU campus...Thank you very much for the offer to post - I'll get a flyer to you.
posted by foxhat10 at 9:22 AM on March 29, 2012
...the ones who are selling are all at very good asking prices (90K - 110K range). I'm in the middle.
The only way you can be in the middle on price is if you're in the middle on quality. If yours is basically equivalent to the others then the cheaper ones are going to go first.
Why do you say these asking prices are so good? Have you looked at comparable houses that have actually sold in your area recently? The asking prices of your neighbors may all be high, in which case nobody will sell.
posted by jon1270 at 9:25 AM on March 29, 2012
The only way you can be in the middle on price is if you're in the middle on quality. If yours is basically equivalent to the others then the cheaper ones are going to go first.
Why do you say these asking prices are so good? Have you looked at comparable houses that have actually sold in your area recently? The asking prices of your neighbors may all be high, in which case nobody will sell.
posted by jon1270 at 9:25 AM on March 29, 2012
Response by poster: @jon1270 - actually, condos in this area have sold just in the past couple of years in the $115 - 120 K range, and the trend seems to be that we are all sticking to lower prices.
posted by foxhat10 at 9:32 AM on March 29, 2012
posted by foxhat10 at 9:32 AM on March 29, 2012
Best answer: We bought a condo. It was in the middle range of 3 others that were selling in that complex. Here is what won me on this condo vs all of the others:
1) It seemed established without looking worn. Rooms were painted actual colors that told me someone once enjoyed living there, not just tried to flip it & did a rush job. That helped make me want to live there.
2) Simple upgrades. Cabinet pulls. snazzy trim in the bathrooms. Anything that looked old in the other condos (gross rolling closet doors, old kitchen lighting) had been replaced.
3) Anything most people would tear down or out had already been done. Some of the condos still had wood paneling or old carpet. Even though they didn't replace these with top-of-the-line stuff, it had been swapped out to something I could live with.
4) It was empty but with minimal staging. There was a made bed in the bedroom. Towels on the towel bar. The place smelled clean vs some of the other empty condos that smelled stale & moldy.
5) They worked with us, as first time home buyers. They paid our closing costs. Anything that turned up on the inspection was taken care of immediately. Again, I felt like I was buying this from a great couple who had lived there, not just bought it, set foot in it once, had some cheap work done to it, and left.
posted by haplesschild at 9:52 AM on March 29, 2012 [8 favorites]
1) It seemed established without looking worn. Rooms were painted actual colors that told me someone once enjoyed living there, not just tried to flip it & did a rush job. That helped make me want to live there.
2) Simple upgrades. Cabinet pulls. snazzy trim in the bathrooms. Anything that looked old in the other condos (gross rolling closet doors, old kitchen lighting) had been replaced.
3) Anything most people would tear down or out had already been done. Some of the condos still had wood paneling or old carpet. Even though they didn't replace these with top-of-the-line stuff, it had been swapped out to something I could live with.
4) It was empty but with minimal staging. There was a made bed in the bedroom. Towels on the towel bar. The place smelled clean vs some of the other empty condos that smelled stale & moldy.
5) They worked with us, as first time home buyers. They paid our closing costs. Anything that turned up on the inspection was taken care of immediately. Again, I felt like I was buying this from a great couple who had lived there, not just bought it, set foot in it once, had some cheap work done to it, and left.
posted by haplesschild at 9:52 AM on March 29, 2012 [8 favorites]
If you can afford it, move out so the realtor can "stage" it. This will make it much, much easier for buyers to really get comfortable and imagine themselves in the space. The money you're thinking of coming down? Use it to rent a studio for a couple months. (It shouldn't cost anywhere near that much, of course.)
Anecdotally I know the phenomenon of buyers being uncomfortable in "habited" spaces is true for me; and I've seen it referred to elsewhere in real estate blogs etc too.
posted by fingersandtoes at 9:54 AM on March 29, 2012
Anecdotally I know the phenomenon of buyers being uncomfortable in "habited" spaces is true for me; and I've seen it referred to elsewhere in real estate blogs etc too.
posted by fingersandtoes at 9:54 AM on March 29, 2012
Best answer: There have been and there always are buyers for properly priced houses, so your pricing strategy should be Job #1.
At your price range, consider offering BCC: Buyer Closing Costs. If this interests you, ask your Realtor to recommend either a dollar amount or a percentage of sales price. Buyer Closing Costs get the attention of typically cash strapped buyers in lower price ranges such as yours......
BTW, your Realtor should be bringing every one these ideas to you, so if your Realtor hasn't provided you every one of the above idea in spades, then they are not doing their job.
Remember, always remember, your Realtor and you are in a business transaction. Make your Realtor hold up their end of the sales bargain. They can be your friend, you can like them, and you can send them Christmans cards for years into the future, but make sure they are doing the job you are paying them 6% to do!
posted by lstanley at 10:32 AM on March 29, 2012
At your price range, consider offering BCC: Buyer Closing Costs. If this interests you, ask your Realtor to recommend either a dollar amount or a percentage of sales price. Buyer Closing Costs get the attention of typically cash strapped buyers in lower price ranges such as yours......
BTW, your Realtor should be bringing every one these ideas to you, so if your Realtor hasn't provided you every one of the above idea in spades, then they are not doing their job.
Remember, always remember, your Realtor and you are in a business transaction. Make your Realtor hold up their end of the sales bargain. They can be your friend, you can like them, and you can send them Christmans cards for years into the future, but make sure they are doing the job you are paying them 6% to do!
posted by lstanley at 10:32 AM on March 29, 2012
My husband and I sold our first condo in a large building with several identical units on sale at the same time simply by being the lowest priced. I'm talking a couple of thousand less.
You may be able to get there by selling directly, without the realtor.
posted by Dragonness at 11:07 AM on March 29, 2012
You may be able to get there by selling directly, without the realtor.
posted by Dragonness at 11:07 AM on March 29, 2012
Best answer: On the one hand, you want to move the unit. On the other hand, you don't want to get into a price competition war with the other units. I don't know (legally) whether you can all get together and collude on pricing, but I suspect it wouldn't be enforceable anyway, so the better way might be to focus on things other than price.
Is your unit less noisy? A preferable distance from the elevator? Upgraded? Be "open and honest" with the people who come see you: point out the things that make your unit "better" than the cheaper ones ("I've priced the unit above [the cheaper ones] because mine isn't adjacent to the main street"), and for those more expensive, be honest too ("I don't know why they're charging $11,000 more, although I've heard the balconies are slightly bigger.") In short, present your option as a fairly priced balance between the worst units and the top-of-the-line units.
posted by davejay at 1:53 PM on March 29, 2012 [1 favorite]
Is your unit less noisy? A preferable distance from the elevator? Upgraded? Be "open and honest" with the people who come see you: point out the things that make your unit "better" than the cheaper ones ("I've priced the unit above [the cheaper ones] because mine isn't adjacent to the main street"), and for those more expensive, be honest too ("I don't know why they're charging $11,000 more, although I've heard the balconies are slightly bigger.") In short, present your option as a fairly priced balance between the worst units and the top-of-the-line units.
posted by davejay at 1:53 PM on March 29, 2012 [1 favorite]
Best answer: I read in a Reader's Digest article that baking cookies right before a showing helps to sell your place. Just don't burn them! :)
posted by fuzzysoft at 4:01 PM on March 29, 2012
posted by fuzzysoft at 4:01 PM on March 29, 2012
Best answer: I'm house hunting now, and I agree with haplesschild's feedback. Neutral, clean, uncluttered. I'd also add that if you have any wallpaper anywhere, get rid of it! Wallpaper is evil and I've skipped many homes just because it was covered with the stuff.
Also, get rid of anything that allows people to judge you or make inferences about your life (even those "live laugh love" decoration things). They can be distracting. Have a home stager come in if your real estate agent isn't giving good feedback.
I do think you should lower the price. This could vary by market, but in my area and in my price range, houses are sitting on the market for awhile. If I see a house that hasn't lowered the price after a few months, I assume they aren't really motivated to sell. A 2% drop should be fine. Splitting closing costs is kind of rare around here, since they're not super high to begin with, but I think it's a good idea to offer that type of concession. Those things would get my attention as a buyer.
posted by smalls at 4:39 PM on March 29, 2012
Also, get rid of anything that allows people to judge you or make inferences about your life (even those "live laugh love" decoration things). They can be distracting. Have a home stager come in if your real estate agent isn't giving good feedback.
I do think you should lower the price. This could vary by market, but in my area and in my price range, houses are sitting on the market for awhile. If I see a house that hasn't lowered the price after a few months, I assume they aren't really motivated to sell. A 2% drop should be fine. Splitting closing costs is kind of rare around here, since they're not super high to begin with, but I think it's a good idea to offer that type of concession. Those things would get my attention as a buyer.
posted by smalls at 4:39 PM on March 29, 2012
Best answer: Your real estate agent should be the one coaching you on this. He/she has the experience and knows the current market, so should be able to guide you. Your agent is also motivated to sell your unit to get their commission! And the commission is their payment for providing services to you. So I would work with your agent, and if you feel you aren't getting the kind of assistance you want, you could look for a more motivated agent.
And if your agent tells you that the market for condos will be better in the next few months (selling season) I would cool it and wait for offers to appear. (Of course, if there's a reason you're anxious to sell quickly, this advice doesn't apply.)
posted by exphysicist345 at 6:34 PM on March 29, 2012
And if your agent tells you that the market for condos will be better in the next few months (selling season) I would cool it and wait for offers to appear. (Of course, if there's a reason you're anxious to sell quickly, this advice doesn't apply.)
posted by exphysicist345 at 6:34 PM on March 29, 2012
A friend who was having trouble selling his unit raised his price after months on the market (to the shock of his agent). It sold quickly. I guess the psychology is that people will figure there's a reason you are selling it for more and they want the best (of what they can afford).
posted by Salamandrous at 5:57 AM on March 30, 2012
posted by Salamandrous at 5:57 AM on March 30, 2012
Best answer: It takes on average 5+ months to sell a place.
Citation, please. I'd be very surprised if condos at that price are taking 5+ months to sell. Usually the lower-end stuff sells faster. Is your stat current? From the Raleigh area in particular? This neighborhood? Condos in this price range?
It also often takes a while to get from initial offer to closing, and that is factored into those average DOM calculations. So, poster, if you haven't even had an *offer* yet, in two months, it is absolutely time to lower your price.
I researched the living hell out of how to best sell a house in the buyeriest buyer's market imaginable (in 2009 in suburban MD), and I did it successfully. Like you, I had multiple competing listings that were very similar to mine.
Why did mine sell first, and for more money than most? 1. My price was reasonable. Some others were not, but they ended up selling for *less* because by the time they finally lowered their price, their high DOM already made them suspect (people assume there's something wrong with a place that has been on the market for many months), and all of the local real estate agents had already written off bothering showing any of their clients the listing. Some listings didn't sell at all, because they were so tainted from their high DOMs, resulting from the owners' refusal to lower their prices when their homes didn't sell for what they wanted them to.
2. I put a tremendous amount of elbow grease into spiffying up my already-spiffy home. Other people stopped at shampooing the carpets; I stretched mine. Other people allowed their walls to be a bit grimy; I went over every inch of mine with bright lights and magic erased or painted over every spot I found. Other people stopped at mowing the lawn; I put in new gorgeous blooming bushes. I stained my front yard fence while one other listing's was clearly worn and unappealing. You don't necessarily need to put a lot of $ into fixing up your house, just a lot of effort, and don't let yourself slide on little details.
3. I did not allow my realtor to put the shitty, shitty digital camera pictures she took on any real estate web sites. I took my own pictures, with a better camera, and with much better lighting and more professional angles. They made my home look worlds more appealing. If your realtor can't take a decent picture, s/he should really be hiring someone to do so. Have you looked at the pictures of your home that appear in flyers and on the web? Do they really represent your home as well as it should be represented?
Salamandrous' anecdote is charming, but it certainly does not represent the norm.
posted by parrot_person at 6:15 AM on March 30, 2012
Citation, please. I'd be very surprised if condos at that price are taking 5+ months to sell. Usually the lower-end stuff sells faster. Is your stat current? From the Raleigh area in particular? This neighborhood? Condos in this price range?
It also often takes a while to get from initial offer to closing, and that is factored into those average DOM calculations. So, poster, if you haven't even had an *offer* yet, in two months, it is absolutely time to lower your price.
I researched the living hell out of how to best sell a house in the buyeriest buyer's market imaginable (in 2009 in suburban MD), and I did it successfully. Like you, I had multiple competing listings that were very similar to mine.
Why did mine sell first, and for more money than most? 1. My price was reasonable. Some others were not, but they ended up selling for *less* because by the time they finally lowered their price, their high DOM already made them suspect (people assume there's something wrong with a place that has been on the market for many months), and all of the local real estate agents had already written off bothering showing any of their clients the listing. Some listings didn't sell at all, because they were so tainted from their high DOMs, resulting from the owners' refusal to lower their prices when their homes didn't sell for what they wanted them to.
2. I put a tremendous amount of elbow grease into spiffying up my already-spiffy home. Other people stopped at shampooing the carpets; I stretched mine. Other people allowed their walls to be a bit grimy; I went over every inch of mine with bright lights and magic erased or painted over every spot I found. Other people stopped at mowing the lawn; I put in new gorgeous blooming bushes. I stained my front yard fence while one other listing's was clearly worn and unappealing. You don't necessarily need to put a lot of $ into fixing up your house, just a lot of effort, and don't let yourself slide on little details.
3. I did not allow my realtor to put the shitty, shitty digital camera pictures she took on any real estate web sites. I took my own pictures, with a better camera, and with much better lighting and more professional angles. They made my home look worlds more appealing. If your realtor can't take a decent picture, s/he should really be hiring someone to do so. Have you looked at the pictures of your home that appear in flyers and on the web? Do they really represent your home as well as it should be represented?
Salamandrous' anecdote is charming, but it certainly does not represent the norm.
posted by parrot_person at 6:15 AM on March 30, 2012
Response by poster: Thank you all for your interesting perspectives and things to consider. Replies to some of your comments, in case anyone re-visits the post:
@parrot_person - i did take many of my own pix to give to the realtor and she used some of her own. I happened to get real nice staged patio shots last summer so i could show what it looks like when all is green and bloomed. So, i was very happy that I thought to do that last summer.
I have put a lot of elbow grease into it, but i will take another look around to see what details I might be overlooking. and yes, making sure it smells clean and fresh as soon as someone walks in IS a priority! The one time it showed when I was in town, I considered the cookie baking, but ran out of time. (BTW, I highly recommend the air wick plug-ins, the clean waters scent (or some name like that).
Sorry, smalls, the "Live Laugh Love" metal hanging stays! - just kidding - although that did make me laugh.
posted by foxhat10 at 8:40 AM on March 30, 2012
@parrot_person - i did take many of my own pix to give to the realtor and she used some of her own. I happened to get real nice staged patio shots last summer so i could show what it looks like when all is green and bloomed. So, i was very happy that I thought to do that last summer.
I have put a lot of elbow grease into it, but i will take another look around to see what details I might be overlooking. and yes, making sure it smells clean and fresh as soon as someone walks in IS a priority! The one time it showed when I was in town, I considered the cookie baking, but ran out of time. (BTW, I highly recommend the air wick plug-ins, the clean waters scent (or some name like that).
Sorry, smalls, the "Live Laugh Love" metal hanging stays! - just kidding - although that did make me laugh.
posted by foxhat10 at 8:40 AM on March 30, 2012
A friend who was having trouble selling his unit raised his price after months on the market (to the shock of his agent). It sold quickly. I guess the psychology is that people will figure there's a reason you are selling it for more and they want the best (of what they can afford).
Oh, yes! This reminds me of a condo I considered buying in Chicago in the early 2000s; it was $110,000, and while taking the tour, the woman who was selling units in the building (it was a building her husband and her were turning into condos) volunteered (in response to my comment about it seeming a bit low-priced) that they'd listed originally for $85,000, but nobody came to see them, so they had just bumped the price to $110,000 and people (like me) started showing up. So there's that.
posted by davejay at 7:00 PM on March 31, 2012
Oh, yes! This reminds me of a condo I considered buying in Chicago in the early 2000s; it was $110,000, and while taking the tour, the woman who was selling units in the building (it was a building her husband and her were turning into condos) volunteered (in response to my comment about it seeming a bit low-priced) that they'd listed originally for $85,000, but nobody came to see them, so they had just bumped the price to $110,000 and people (like me) started showing up. So there's that.
posted by davejay at 7:00 PM on March 31, 2012
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Also, evaluate whether it's typical to have five of these on the market at the same time. If that is unusually high, see if you can market yours when there is less head-to-head competition.
posted by Clyde Mnestra at 8:57 AM on March 29, 2012 [2 favorites]