....Although the questions relate directly to my own home/listing, I would imagine that the questions posed and the situation I am facing will be seen more and more as this real estate slowdown runs its course. So perhaps the answers given will help some of you as well.....
...So the difficulty was that there weren't many comps of condo units in our development Our agents said, "If we were pricing a bi-level in XYZ Acres or ABC Hills we could have a price for you off the top of our heads that would be be almost perfectly correct. Yours will take some figuring and head-scratching." They came back with a range - ranging from "quick sale" to "test-the-market" of $289,950 to $329,950. We (being greedy and optimistic) went with the $319,950 - which is why I referred to it as the "higher end of what should be considered the market range." We figured (naively perhaps) that ours was so much nicer than the others that had sold, had more bedrooms, more baths, etc. We failed to take into account the car lovers and step-haters I guess. I believed (and still do to some degree, although I'm beginning to see the light) that it was just a matter of getting the right buyers inside (given the "no one knows what lurks inside this house" aspect and the "Wow factor" and that compared to anything else around it was priced reasonably. Silly me....
Rob
...One thing will happen regardless of what your agents do or not do. It will either sell right away at $300K or it won't. If it does not sell at $300K then you need to adjust your marketing (PRICE) to get it sold....
I have come to the conclusion, that I was off by 50K. I should have said
"One thing will happen regardless of what your agents do or not do. It will either sell right away at $250K or it won't. If it does not sell at $250K then you need to adjust your marketing (PRICE) to get it sold."I do not know the market in Roanoke or the appreciation on condos in the last few years. I do not have access to the local mls in Roanoke Virginia, so I can't say what I would have originally priced this piece of property. I took RealEstateClient's word that the agents did some serious "figuring and head-scratching". I looked on Realtor.com and noticed the lack of high end (300K) condo's for sale in Roanoke, so I decided to check out the assessor for some insight.
July 30, 1998 this condo sold for $130,000. Almost six and half years later the condo appreciated and sold for $179,950. (an increase of almost 50K in over 72 months) to Myra C. on November 8, 2004. Now Myra only held this property for LESS than a year and a half and Sold it March 15, 2006 to our buddy Rob F. for $212,000 . (an increase of over $32K in 16 months) To recap, for a period of 6.5 years this condo appreciated almost $695 a month.. Then all of a sudden for the next year and a half it appreciated $2000. a month.
WOW!Now Rob decided to sell this condo for $319,950 less than a year of owning this home that he thought they would live in for 20 to 30 years. If you do the math that's $107,950 MORE in just eleven short months. To recap, for a period of 11 months they were hoping it had appreciated $9813.64 a month.
WOW! That is maybe a little "greedy and optimistic" considering to quote RealEstateClient
"The market here: a little sluggish, but not awful. A bit more inventory than normal, listings taking longer to sell, prices fairly steady."It will be interesting to see as the listing ends its sixth month, what will happen. Will the same agents re-list it? Will a new agent get it and price it to sell at $225,000 or will our brothers on the BPO, REO, Foreclosures side be writing about this property.
To recap, One thing will happen regardless of what your agents do or not do. It will either sell right away at $250K or it won't. If it does not sell at $250K then you need to adjust your marketing (PRICE) to get it sold!
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