That’s the story of my cheap little listing in Wingfield Springs. Even in this market, the good deals don’t last. We found $255K to be the magic price point that put this home in into escrow, scheduled to close in late January. Two major price reductions brought it into line. And if the current buyers don’t work out, we have backups.
How did my sellers achieve this in only three weeks, right before Christmas, in a bad market, at one of the seasonally slowest times of the year? By pricing their house to sell. It’s that simple. Yes, they’re taking a haircut on this one, but they will be getting their cash out before the market worsens, and they will be getting on with their lives.
If you’re serious about selling, you need to be serious about pricing.
NAS
Thank yoooouuu, Diane. How refreshing!
You Tube has a great piece of advice for sellers:
Buyers don’t care what you paid for it.
Buyers don’t care how much you spent for upgrades.
Buyers don’t care if your losing money on it.
Buyers are interested in the price.
ps: congratulations
smarten
Diane states “they will be getting their cash out before the market worsens.”
Wow. So now you think the Reno-Sparks SFR market IS going to worsen?
I congratulate you for convincing your clients to become REAL sellers.
SkrapGuy
This post simply confirms what others have said over the past many weeks and months. It’s just not true there are no buyers. There are no buyers at bubbled up overpriced dream on “I’m not giving it away” “I need to get….” “Well my neighbor sold for this much in 2004” delusional prices.
And so now Diane I guess you are officially in the Reno Ignoramus camp? The market gets worse from here, not better?
Perry
Congrats on the offer Diane. I think this house shows that the market is healthy at the right price. To sell a house right around Christmas is excellent.
People say it’s a buyers market but I would argue with that statement to some extent. If it were a buyers market I would think buyers would be getting houses. Right now it seems to me as it’s no one’s market. Nothing is selling. Even though there are over 5000 listings there is a housing shortage (read realistic seller shortage).
Diane had three offers on her listing. This shows that there are more buyers for realistically priced homes than there are realistically priced homes. Even though this seller lost a lot of money, he did have demand. If you currently have a home that you bought prior to say ’02 I think you could create quite a bit of demand on your home if you priced it right.
Lindie
“If your serious about selling, you need to be serious about pricing.”
And so how serious are the owners of the Caughlin Ranch house, now at about 365 days on the market and $3.2 million?
And how serious are the owners of the red barn at $800,000?
Do we only ask the sellers to be serious when we represent the buyer?
smarten
Lindie asks, “do we only ask the sellers to be serious when we represent the buyer?”
I think Diane’s post answers the query since I’m certain she convinced her clients to get serious pricewise.
Move to Reno?
That’s why it will take several years before the market reaches bottom and finally goes back up. Prices are much too high for what most buyers can afford.
What happened to that mortgage broker?? Maybe he could explain how easy it is to get a mortgage these days.
Diane Cohn
NAS, thanks, and you are certainly right about the buyers. In this case it was the seller’s open mindset that made everything happen. We started at $275K resulting in very little action. So next week we lowered to $265K. Activity picked up a little, but no offers. So we lowered the next week to $255K, and that’s what created the desired result. A sale!
Smarten, yes, I think it will get a little worse before it gets better. CNN Money is predicting another 9% decline for our market. I’m thinking that, maybe more in some areas once the foreclosures start hitting the market. 2008 will be a cleansing year.
SkrapGuy, Reno Ignoramus is my secret hero. Too bad he’s on vacation and isn’t around to read this.
Lindie, if I could do a Vulcan mind-meld on all my sellers and get them to let go of all the demons that bind them, I most certainly would.
Thanks everyone for reading and commenting on the blog… happy holidays!
Derrick
Just wanted to wish everyone a merry christmas!! Hope you all enjoy the holiday with good friends and family.
I will be in amsterdam for the next 3 weeks enjoying mine. Hey dian maybe ill even check out some of the local real estate while I’m there. that is of course if I can remember too!
however I may be busy enough as it is. visiting RLD, van gogh museum, rembrandt museum, heineken museum, Anne Frank house. Maybe I will even take a relaxing day off at the Sauna Deco!
Did I forget to mention all 300 hundred cafes?
p.s.
I will keep contact via i-phone.
MikeZ
Good job, Diane.
Wishing you and your family happy holidays and a healthy and prosperous new year.
Tom
Wow, a house sells for $255k and that is newsworthy enough to generate all these congratulatory notes and market pricing comments. I think that says it all; there is really nothing more to say.
DaveInLosGatos
Derrick, I’ve been to many of those 300 coffee shops in Amsterdam…for research purposes of course. Also been to many of the attractions you mentioned. Although COLD this time of year, Amsterdam is a wonderful, vibrant city – Have fun!