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patty_cakes_gw

2nd offer.....

patty_cakes
15 years ago

Just as i'm getting ready to fire my REA, he calls to tell me he has another offer~go figure.

Realtor called on Sunday, and asked if she could bring over a client on Mon. afternoon. Just as I was getting into my car a young woman parked next to me, and I asked if whe were the realtor. She replied she was meeting the realtor, and she was the one looking, and asked if I was the owner of the condo. I replied I was, but was leaving as I wanted her to feel comfortable when looking. She *asked* me to please stay, as she might have questions~how nice is *that*?

The realtor arrived and we went inside, and the young woman, a teacher, said 'I LOVE it!'~I was overjoyed! 25 minutes later, while standing at the door,she made the comment, 'you're probably looking to get the higher of the two prices.' Not kwowing how far I should let this conversation go, I said, 'well, someplace in between was what I was hoping for'. She then said the lower price was her limit, and she would have to rent out the second bedr. to make her payments(true/not true?), but she was pre-quallified, had 10% down, and could do a 30 day closing.

Of course I really want this young woman to buy my place, not only because buyers like her are few and far between, but she already feels an emotional attachement~she's looked at the other 6 units available in my complex, also. For all I know, the young woman may have 'other means' to access money, and may be saving that strategy as a back up, if necessary. Afterall, she does know it's a buyer's market and doesn't know my level of anxiety.

I'm sitting here waiting for a realtor friend to take me thru an empty unit, identical to mine. Again, dual pricing, $399-$415. If this unit doesn't have upgrades, it could justify my counter, but also scare her away. That's a chance i'll just have to take.

I'll be meeting with my REA tomorrow eve to hear what the offer is and will decide on a counter then. I didn't want him to give me the offer over the phone since I wanted to have a 'sit down' as I have numerous issues we need to discuss.

He *did* put fliers in all the neighbors front door without me asking this week.

PLEASE cross your fingers!

Comments (47)

  • theroselvr
    15 years ago
    last modified: 7 years ago

    Fingers & toes Trish!

    Man, 1st Sparksals, now you.. Is it my turn next?

  • whenicit
    15 years ago
    last modified: 7 years ago

    Can I go next?

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  • triciae
    15 years ago
    last modified: 7 years ago

    Patty_cakes...

    How did it go? I've had my fingers & toes crossed for you the past couple days.

    /tricia

  • patty_cakes
    Original Author
    15 years ago
    last modified: 7 years ago

    Roselvr and Tricia, thanks again for 'hanging' with me and keeping me positive! And whenicit, just be patient, it *will* happen.

    Again, i'm disappointed in the numbers, but knew this young woman could only stretch so far. The offer was $387 with $10,000 toward closing/fees the buyer incurs. Knowing she'll love my place as much as I do, i've tried cutting her a deal~I countered with $410K plus $5,000 toward closing/fees. I don't know if she's thought of taking out a second, or if that would really put her over the top. Hopefully i'll get a counter of some sort over the weekend, but it may not come until Mon.

    I'm trying to remain optimistic. Having had only two interested parties and both making offers is very encouraging, especially with only 46 DOM. When people get in the door they really like what they see, so it's just a matter of getting someone in who's in a better position for negotiations.

    I viewed the condo that's identical to mine with a price range of $399-$415~IMO, he'll NEVER get even close to the low price. It faces a busy street, old carpeting, new vinyl floors in baths/laundry, old wood flooring that looks like wall panneling in foyer/kitchen, no up-grades in the kitchen except a new faucet~same for baths, no fresh paint and lots of obvious dings in the walls, and a general dreary feeling to the condo~it needs love. Coming back to mine was like night and day.

    I decided to do another price change also~back to the $399 low price, but dropping the high end to $424,500 from $435. Realistically, if I could get an offer between $415-$419, I would be happy.

    So what's the consensus? What do *you* think will happen with this young woman and her offer? What do you think of my price range, besides not liking the value range?LOL Thanks again for all comments, opinions, and HELP you all have given me.

  • terezosa / terriks
    15 years ago
    last modified: 7 years ago

    It seems to me that if you want, and believe your home is worth $415, then your "low" price should not be $399. If you don't want to accept the "low" end of your range pricing you should not be using a range.

  • triciae
    15 years ago
    last modified: 7 years ago

    patty_cakes,

    You've had two offers. Both well below your asking price. That's telling you something that you should be listening to.

    People are keying off your low end &, IMO, will continue to do so in this market.

    Also, if you receive a no contingency offer at $399K won't you have to accept it 'cause it's full price? If not, then why is the range pricing not false and/or misleading?

    /tricia

  • xamsx
    15 years ago
    last modified: 7 years ago

    patty_cakes while I wish you the very best of luck selling your house two things seem clear - your market has changed and the range pricing is not working in your favor. Your offers are below the lowest range and your condo may no longer be worth what you had hoped it would be worth.

    At this point, why not consider one price as traditionally done? Review the comps. Maybe the range pricing is skewing your offers and you really can get $415K if you list for $425K?

  • terrig_2007
    15 years ago
    last modified: 7 years ago

    I'm curious about something. Why are the buyer's closing costs so high? I've never seen closing costs for over $3k. Where is the condo located?

    It's an unfortunate time to be selling property. I know...my DH and I sold two houses earlier this year. We both expected to get more than we did, but, in the end, we were just happy to have our property sold so we could get on with our lives. You may have to compromise more on price than you want if you really want to sell. If you don't have to sell, maybe you should wait a bit. Just my 2 cents.

  • triciae
    15 years ago
    last modified: 7 years ago

    terrig, the buyer could be trying to buy the rate down to qualify for a jumbo.

    /tricia

  • jy_md
    15 years ago
    last modified: 7 years ago

    Again, i'm disappointed in the numbers, but knew this young woman could only stretch so far. The offer was $387 with $10,000 toward closing/fees the buyer incurs. Knowing she'll love my place as much as I do, i've tried cutting her a deal~I countered with $410K plus $5,000 toward closing/fees.
    . .
    . I decided to do another price change also~back to the $399 low price, but dropping the high end to $424,500 from $435. Realistically, if I could get an offer between $415-$419, I would be happy.

    Okay, I'm confused. (Never mind the range pricing scheme - that I get although I think buyers are now focusing on the LOW end of the range while sellers are still focusing on the MIDDLE.) If you write you want/need $415-$419k to be happy, why are you countering this offer with $410k with $5k closing?

    I just don't understand.

    I hope you sell your condo soon. It is drawing interest so it shouldn't be too long now.

  • theroselvr
    15 years ago
    last modified: 7 years ago

    I think you might have had better luck with guy #1 if you are willing to take that much. I also think that instead of changing the low end, you should just list at $224,900 and maybe you will either get guy #1 back or someone else may come along.

    Trish, this pricing doesn't seem to be working in this market & if your agent keeps insisting it is, he needs a reality check. The price should reflect what you will take so changing the low number to $399k is not going to help. He may have you at a full price offer according to your contract if someone is coming within that number. As much as I think the pricing could work in a good market, in this market it doesn't seem to be.

    I hate to see you lose time. This market is a killer. The longer you wait the bleaker it gets.

  • theroselvr
    15 years ago
    last modified: 7 years ago

    Trish, take a look at the link below. According to that, there are 4640 foreclosures.

    Not sure if you saw me mention some guy stopped me the other day and mentioned he was watching our house as well as a few foreclosures?

    Throwing it out there, so that maybe you can figure out what to do using this information.

    Does anyone else track the San Diego market?

    Here is a link that might be useful: San Diego foreclosures

  • hobokenkitchen
    15 years ago
    last modified: 7 years ago

    Patty_cakes; why are you clinging to this dual pricing? I just don't get it. How many offers will have to get away, before you change it?

    I am glad that you are at least narrowing your range somewhat, but you MUST know by now that if your low end is $399,000, that is where your offers will be in this market.

    Why not do a price range where you increase your low end and decrease your high end and narrow it to a range that you are willing to accept; say $410,000 - $425,000. That's if you feel you MUST stick with the range pricing.

    It makes no sense to me at all that you would put a price out there that is below your bottom line. It seems very unfair. This buyer probably thought she could squeeze and afford your place based on your misleading bottom end pricing. To you a 410,000 counter seems like cutting her a deal. To your buyer it probably appears that you are not serious about selling as you are still well above your lower range of price.

    Maybe other people understand something about this that I am not getting.

    I really, really hope you get your place sold soon - it sounds like you have a great condo if it is getting so much interest, but it doesn't seem like you are listening to the feedback being given to you time and again. Make your range a range that is acceptable to you. Otherwise it is misleading and almost guaranteed not to work.

  • hobokenkitchen
    15 years ago
    last modified: 7 years ago

    Sorry Patty_cakes, just re-read my post and it came out harsher than I wanted.
    It is all meant with good wishes to you and I hope I am wrong and your buyer comes back at a more acceptable amount to you, I really do!
    But if it doesn't work out with this one, think carefully about your next pricing strategy!

  • sweet_tea
    15 years ago
    last modified: 7 years ago

    I hope your agent contacts guy#1 to say you have an offer on the table and if he is interested in the place, that he can make an offer "before it goes under contract" with the other party.

    He doesn't have to know that you countered. besides, sounds like you will getting a counter from the teacher (which negates your counter).

    It would be good for you to have a counter from teacher and and offer from guy#1 - so you can decide which to follow through with.

  • sparksals
    15 years ago
    last modified: 7 years ago

    Pattycakes - two offers! Gotta give you kudos for that!

    I have to agree with everyone else. People are offering the low end of your range for a reason. When I fired our first realtor, I had a realtor call me and professed the range pricing. His logic was that people will see what a wonderful house it is and offer more than the bottom end of the range. I didn't buy it. For me, in this market, it was too risky and too confusing to buyers.

    Whenever I look at listings, I steer clear of those in the range pricing because it appears to me to be too gimmicky.

    I have to agree with the others that if your bottom line is $415K, then you need to price it to reflect that. I also agree with the person who said that if you must stick with the range pricing, then up your bottom price to reflect more what you're willing to take.

    Good luck!

  • fairygirl43
    15 years ago
    last modified: 7 years ago

    In a buyer's market, I'm not sure the whole range pricing thing works. If I was a buyer, I'd come in lower than the "low" price listed on your range. So if your current low is $399k, coming in at $387k is pretty good. But if you want/need to get $415k, you really should change your range. It is a bit of false advertising. You may not be able to get $415k in this current market either.

    I'm hoping this works out for you and the teacher is able to come up a bit. Sometimes it's worth taking a little less to get a great/nice buyer!

  • triciae
    15 years ago
    last modified: 7 years ago

    Oh phooey on the 'nice buyer' thing! Well, that makes me sound awful but it's true.

    You want to sell the property. Cut the emotional apron strings. Who cares about whether she's a teacher & you liked her? Stop trying to second guess these offers by wondering if she can get a second mortgage, or something. Get out of her head & into your own. Don't waste emotional energy trying to guess what's out of your control...focus on your own game.

    Set your price point so that a 93% offer, or above, gets a "Sold" sign on the door!

    Patty_cakes, I'm going to ask you a question. If you were me with lots of REOs to sell & you needed to get a fair price for each & every one of them, how would you answer this question from your CEO?

    "So, patty_cakes, I understand you've had two offers on that San Diego condo. The last one was 95% of your lowest acceptable price, wasn't it? When can I expect to see the sale show up on the banks' balance sheet?"

    "Well, sir, I countered at a bit above my lowest acceptable price...trying to get every dime ya know."

    "You did WHAT? Properties are dropping 1% a month! You countered a 95% offer? Well, you'd darn well better get that counter or the carry costs are coming from your paycheck!"

    This scenario is basically what you're facing.

    /tricia

  • theroselvr
    15 years ago
    last modified: 7 years ago

    Guess what I just got in my emails?

    Our team just wanted to let you know that the Price of the listing below has changed
    OLD Price : $435,000.00 NEW Price : $422,500.00

    I saved it in my Remax profile, so I'm hoping your agent got rid of the value range pricing?

  • lyfia
    15 years ago
    last modified: 7 years ago

    Patty_cakes - Good luck in getting this offer to work. BTW how did your talk go with your realtor?

    One thing you might want to try and do when you decide how to price your condo is pretend you are a buyer in the area with your market and decide how you would offer on a property when you saw the range pricing. This might help you better understand if this is a good method for you or not. Just make sure you think about it as a buyer. Like you would when you are looking to buy in Austin.

  • patty_cakes
    Original Author
    15 years ago
    last modified: 7 years ago

    Tricia, WHY do you have to be so realistic?LOL I know you're trying to keep me 'in check', and I can't thank you enough. You're a professional, who thinks logically, unlike myself, who has now gotten into an emotional issue with the buyer because she 'loves my home'. You're right, HOGWASH! But *realistically* there are 7 other units on the market, so even if I do drop my price, she *can* still go elsewhere~there are no guarantees. Using your scenario, I would probably be fired from the bank since my stubborn streak outweighs my logicical streak. Also, in *my* real world, the lowest price isn't even close to my expectations. It's a starting point to draw buyers in, and although working against me on price, i'm at least getting offers. All I need is ONE that gives me a little more room for negotiations. I know you feel my theory doesn't hold water Tricia, but with so few days on the market, I can't concede, yet.

    Roselvr, terri, xmasx, jy_md, hobokenkitchen, sweet_tea, sparsals, fairygirl, and lyfia, as for the dual-price, no matter HOW I list, i'll still be offered less than asking, by as much as $10,000. It may be the wrong market to be listing this way, but again, i'm getting interested lookers, and that is where it has to start. I'm holding on to the hope that things can be worked out with the current offer. If not, it's back to the drawing board. Crazy? Maybe so, but time will tell.

  • theroselvr
    15 years ago
    last modified: 7 years ago

    Patty (I'll call you Patty since no one knows who Trish is)

    Did you get the emails I sent you today? My concern is the foreclosures in your area. From what I am seeing / reading San Diego is getting a price correction, so while your place may be priced correctly next to the other units, from what I am reading, it may not be priced correctly in this market with the foreclosures, etc.

    You are not too far off if you can get her to keep negotiating, perhaps she can go up some but maybe not as high as you'd like; that is if you can afford to do so.

    I'm afraid that by the time you get the pricing where it should be (at a more realistic price to what you'll take) the market is going to depreciate and by the time you get the next offer it may be lower then the 2 you've had. The way it looks, the people that are coming to your place are not the higher bidders because in this market they see the unrealistic lower number and figure it is what you'll take.

    You want to sell the property. Cut the emotional apron strings. Who cares about whether she's a teacher & you liked her? Stop trying to second guess these offers by wondering if she can get a second mortgage, or something. Get out of her head & into your own. Don't waste emotional energy trying to guess what's out of your control...focus on your own game.

    Tricia, you're the financial expert here, can you give her links or something so that she can read what ever is out there to maybe make her mind up on what to do?

  • theroselvr
    15 years ago
    last modified: 7 years ago

    I see the reply (blushing)

  • terezosa / terriks
    15 years ago
    last modified: 7 years ago

    So, you have had 2 offers, the first for $396,000 with a $19,000 contribution from you; the second for $387,000 with $10,000 from you. Basically 2 offers for $377,000. I think that this should tell you that your condo is NOT worth $415 - $425.

  • susanjn
    15 years ago
    last modified: 7 years ago

    Of course, you can hold out for any price you want. That's a seller's prerogative. Just be well aware of what you are doing.

    It's the buyers prerogative to move on to a more motivated seller.

  • triciae
    15 years ago
    last modified: 7 years ago

    Patty_cakes,

    OK, I'll back off & just send you good selling vibes...head bent with fingertips touching forehead...hmmmm, hmmmm, hmmmmm. Ditcha get the vibes?! lol

    What about my question though about a technical full price offer at $399K? Are you obligated to accept it with this range-pricing gig? If not, has it been tested yet in court under a 'specific performance' argument? I'm curious about that part of pricing like this is a down market. I don't understand why you wouldn't be forced to accept the lower price assuming no contingencies?

    /tricia

  • kylie_m
    15 years ago
    last modified: 7 years ago

    Tricia, in San Diego, the Value Range Marketing typically states "seller will entertain offers between...". It doesn't say "seller will ACCEPT..."

    Okay, I am very familiar with the San Diego VRM marketing concept having sold two houses (one in Penasquitos, one in Escondido) that way. But I also acknowledge it works much better in a sellers' market than a buyers' market. And Patty_cakes, I have to agree with Tricia, you are thinking way too emotionally here. Ya gotta put on that business hat girl. Keep your eye on the prize, which is Texas, no?

    Best of luck to you!!

  • patti43
    15 years ago
    last modified: 7 years ago

    I don't know where you live, but if a teacher can afford a $400+ condo, we'll move and I'll send retired DH back to the classroom!

  • hobokenkitchen
    15 years ago
    last modified: 7 years ago

    Patty_cakes, I continue to wish you luck too, but I sincerely hope that when I am looking for a house in the coming months we don't have sellers who are dangling their house at a price we can afford and then snatching it away as soon as we make an offer.

    You are clearly very set in your tactic here, but it all seems an underhanded way of doing business to me although I am sure that is not your intention. It seems a bit 'bait and switch' to say that you'll consider an offer between $389,000 to $435,000 but actually mean that you will find any offer under $415,000 ridiculous as you put in a different post and won't consider it at all.

    Oh well, I guess I'll just have to wish you all the best and back out of the advice giving as you don't seem to be taking anyone from the forum's advice on this anyway! : )

  • minet
    15 years ago
    last modified: 7 years ago

    I would seriously think of taking the next semi-good offer that comes along. We moved out of SoCal (Orange County) about 10 months ago and I've been watching my old neighborhood.

    Today I checked via realtor.com and saw that the house directly behind my old one is now down to $480k ... more than $100k less than what our smaller house sold for last November. They started out with a list price of $650k.

    They have beens steadily dropping the price and the last drop was from $550k last week to $480k now ... $70k drop. I thought it must be a typo - but looking at zillow I see they bought the house 3 years ago for $475k - probably had an ARM that is now re-adjusting and they can't afford it and just want out.

    I'm seeing houses in my old zip code listed for under $400k - just 2 so far, but others are getting close. Haven't seen that pricing in 3 years.

    I would not count on your realtor giving you the best advice on this - look out for yourself, if you really want to move away you need to price aggressively low and get out.

    I never thought we'd sell for under $600k but we were moving out of state and wanted to be ahead of the downward pricing curve. Now I'm just glad that we bit the bullet and did it. So many other people refused to drop the pricing and are still on the market or have decided to stay.

    Good luck - *watch out for yourself* on this - how long has your realtor been in RE? Long enough to see the ups and downs of a market or has he only seen the up up up of recent SoCal history? Listen to seasoned local RE people. Read as much as you can and take their advice ...

    Good luck. Wishing you well.

  • patty_cakes
    Original Author
    15 years ago
    last modified: 7 years ago

    I've taken everyones words to heart and have finally taken the ear plugs out and really listened. Kylie_m, i've put on my business hat, but mind you, it's pretty simple, and not up to the caliber of what Triciae, terriks, and roselvr would be wearing~just the beginners standard.

    My *new* and hope, improved price is a flat $422,500, which still gives me flexibility, but might help keep those low offers at bay. Do I hear cheeing in the stands?LOL Let's hope this new price will still be attractive.

    Minet, if the next price is just slighly higher, it's a done deal~third time's a charm!;o) Where did you live in OC? I have a daughter in Trabuco Canyon, and thank goodness they're not thinking of selling. Where did you move, and why? My REA has been in the business 6 years, so mostly when the market was good, or at least solid. I listened to him re:the dual pricing, but don't listen to his song and dance about other things, such as 'you're not going to get any buyer's agent's to show at 5%'~so far i've had two in the 40+ DOM. He also thought I should have jumped at the first offer of $376 with 19,000 toward closing/buyer's fees~'that's a good price!'

    To add a little joy to my life, the man I've been talking to at the developemnt in Austin called me today. Said he's going to talk to the 'higher ups' about doing a contingency for me. I would only need $2,000 to get the house started, and *know* I will have mine sold before the completion date of 6 months. What's your opinion on putting the cart before the horse?

    Thank you again, and again and again! It took awhile for y'all(practicing my 'Texas')to get thru to me, but this selling thing is so very new to me and I thought it could work. Now let's just sit back and see what happens!!!

  • minet
    15 years ago
    last modified: 7 years ago

    We lived about 2 miles from South Coast Plaza. Good, quiet neighborhood, close to everything.

    We moved to Oregon, mostly to escape the pace of SoCal. We just wanted someplace not so frantic. Neither of us were California natives so no real ties there.

    I lived in Austin from 1986-1997 and was very happy there. I hear it's changed a lot but is still a good place to live. I'm sure you'll enjoy it. :-)

  • theroselvr
    15 years ago
    last modified: 7 years ago

    My *new* and hope, improved price is a flat $422,500, which still gives me flexibility, but might help keep those low offers at bay. Do I hear cheeing in the stands?LOL Let's hope this new price will still be attractive.

    Do you have a game plan? With us, we will put the new counters in (kitchen & main bathroom) then get new photos up. We will then wait a week or 10 days, then if things don't start, will reduce some.

    I just saw a house go up that they paid $190 for in November 2006 and are selling for $187, so they are bringing money to the table. I don't doubt they bit off more then they could chew.

    Are you watching your competition at all?

    My REA has been in the business 6 years, so mostly when the market was good, or at least solid.

    IMO, I would love to see you start agent shopping. You need someone with more experience, he's only known the good market.

    To add a little joy to my life, the man I've been talking to at the developemnt in Austin called me today. Said he's going to talk to the 'higher ups' about doing a contingency for me. I would only need $2,000 to get the house started, and *know* I will have mine sold before the completion date of 6 months. What's your opinion on putting the cart before the horse?

    I sent you details about what we did, maybe it will help. If you have questions ask, and if you need any help, know where to find me.

    I've taken everyones words to heart and have finally taken the ear plugs out and really listened. Kylie_m, i've put on my business hat, but mind you, it's pretty simple, and not up to the caliber of what Triciae, terriks, and roselvr would be wearing~just the beginners standard.

    Thank you so much, but I'm also a beginner that's learning and trying to learn fast which is why I'm making use of multiple real estate forums as well as blogs. Between what I'm reading at these places, I'm trying to take it all in, and hopefully learning a little. Hopefully we can sell ours!

  • galore2112
    15 years ago
    last modified: 7 years ago

    You are at 40 DOM. In SoCal.

    Where homes used to sell in a bidding war before they were listed.

    You've had two offers that were WELL below your new asking price.

    You had NO offer close to your new asking price.

    Now you start building a new house in TX.

    That tells me you better have enough money to prepare for the worst case outcome. There is a very real chance you'll not be able to sell for even the low offers you already rejected.

    "Said he's going to talk to the 'higher ups' about doing a contingency for me."
    Even in Austin, builders are scrambling for buyers. I'd not put too much into the builder's cooperation. He is probably desperate, too.

    Nobody predicts that the market in SoCal will improve anytime soon. To the contrary. And buyers know that. And you have a condo, not a single family house. Very, very risky.

  • bethesdamadman
    15 years ago
    last modified: 7 years ago

    triciae: "What about my question though about a technical full price offer at $399K? Are you obligated to accept it with this range-pricing gig? If not, has it been tested yet in court under a 'specific performance' argument?"

    A seller is never obligated to sell their house until they sign a contract. Merely listing a house for sale never obligates the owner to sell the house. It wouldn't matter whether the offer was full price or even double the price! However, if the seller was working with a realtor, and an agent brought a full-price, non-contingent offer to the seller, then the seller would be required to pay the commission as outlined in the listing agreement. However, the seller would still not have to sell the house. "Specific performance" only comes into play if the owner changes his or her mind after a contract to sell has been signed by both parties.

  • theroselvr
    15 years ago
    last modified: 7 years ago

    A seller is never obligated to sell their house until they sign a contract. Merely listing a house for sale never obligates the owner to sell the house. It wouldn't matter whether the offer was full price or even double the price! However, if the seller was working with a realtor, and an agent brought a full-price, non-contingent offer to the seller, then the seller would be required to pay the commission as outlined in the listing agreement. However, the seller would still not have to sell the house. "Specific performance" only comes into play if the owner changes his or her mind after a contract to sell has been signed by both parties.

    Not quite, it may depend on the state though.

    I know someone that was listed with an agent and brought them a full price offer - seller didn't want to take it. The agent didn't want to let them out of their contract because they did have a full price offer. I don't know the specifics after the fact, so I don't know the outcome.

  • lyfia
    15 years ago
    last modified: 7 years ago

    Trish - now that you have your "business hat" on I'd also go back to your listing agreement with the realtor and change the 5% structure. Keep it at 5%, but say you will pay 3% to the buyers agent and then 2% to your listing agent, or the full 5% to your realtor if no other realtor is involved.

    Of course the above assumes that the 5% is currently split at 2.5%.

    Also what does comps say about your current price? I hear others from So Cal wondering if you are too high. Has anything sold recently that you can use as a comp to see how realistic your price is as it doesn't seem like your offers support your price at this time.

    Good luck on the contengincy.

    A note on Austin's market. Austin has slowed down but it still hasn't gotten as bad as elsewhere in the country. Austin has only slowed down to be a neutral market vs. a sellers market. Last report even said prices were still increasing over last year although sales were down 10%.

  • buyme2007
    15 years ago
    last modified: 7 years ago

    I am glad to hear that you changed your pricing to a flat number. I think ranges are very misleading if you really wouldn't consider the lower number in the range.

    Not the same thing, but an interesting story that's kind of related... When we were looking to buy this spring, we put an offer in on a house (very close to asking, I think we were 2% below asking). They said they wanted full asking and since the house had what we were looking for, was in a great location and was within our price range, we upped our offer to full price. They rejected it and pulled the house off the market. Found out later that they had priced it hoping to get a bidding war and go over asking price. What a waste of our time, our realtor's time and their realtor's time.

  • bethesdamadman
    15 years ago
    last modified: 7 years ago

    roselvr: "Not quite, it may depend on the state though.

    I know someone that was listed with an agent and brought them a full price offer - seller didn't want to take it. The agent didn't want to let them out of their contract because they did have a full price offer. I don't know the specifics after the fact, so I don't know the outcome."

    No, roselvr, it does not depend upon the state. An offer to sell does not obligate the owner in any way whatsoever to sell the house in any jurisdiction in the United States. It is a basic tenet of contract law. What you are referring to is the agent perhaps not letting the owner out of the contract provision of the listing agreement which would obligate the seller to pay the agent the commission. But again, that does not obligate the seller to sell the house.

  • calliope
    15 years ago
    last modified: 7 years ago

    Looking at it as a buyer......If I made an offer at the full price on the lower end of the price range, and had it countered, as a buyer I would have a hard time cutting the very same emotional apron strings. It's a rejection and just as many buyers as sellers have a hard time operating with a detached attitude. Just as there are warm fuzzies concerning landing a dream home there are also fears about the biggest debt a person would ever commit to in their lives.

    My realtor keeps assuring me that if we could just get people in to view the house I have up for sale, it would go quickly. For the most part, I'd like to think the very same thing. But I'm not optimistic this is the entire story.......so am not particularly interested in playing price games to attract buyers with less money than I'm willing to accept. I am below comps at this point, but she is also basing the comps on history. Even six month old comps here are ancient history as far as I'm concerned......and I know houses on the same street with six month's wait to sell and they're still waiting. People here not only aren't buying real estate, they aren't even looking much at it. Open houses at both ends of the pricing spectrum in this area are becoming no shows. I hope the agents bring a sack lunch and reading material. I set my price as low as I can comfortably set it with any bargaining room. I can afford to go much, much, lower because I have 100% equity in that home and don't need to sell it. But, I have to weigh in my mind how much profit I am willing to accept and know as the time wears on, I may readjust my greed. Whoops, I meant to say need. LOL.

  • patty_cakes
    Original Author
    15 years ago
    last modified: 7 years ago

    Update:buyer's agent called to let me know that Becky had put in an offer on a smaller condo in her price range. She wanted to let me know as there would not be a counter thru my agent~she may be my 'new' agent because of her consideration! *I'm* sad, but happy Becky has found a place within her means. She just couldn't afford to ante up as she needs to 'have a life' also, smart girl.

    After deliberating on a new listing price for quite awhile, I decided on $424,500, not $422,500. I went back and forth between the two, and the higher amount will give me just a tad more flexibility. In one of my posts I said I would be happy if I could get an offer between $415-$419, but now i'm thinking $410 would be a killer 'deal'!

    Rorelvr, am I watching my competitors? Like a hawk! Not one of them has dropped their price in the time i've listed~should that be telling me something? My agent figured out price-per sq ft, and i'm way below the others, including upgrades. And yes, I *am* shopping! You should have an email from me.

    Jrldh, where i'm looking, there are *no* scramblers. Every spec home has sold, and the builder is continuing to build more, with a slight price increase, other builders in the same area, also. This particukiar developer is building in several areas in Austin, as well as Dallas, San Antonio, etc. The season also has something to do with the slowing of the market.

    Lyfia, what agent would *buy that*? This last buyer's agent was asking for 3%, but it never got far enough along to come up for duscussion. When signing with my agent, it was agreed to be a split, so I don't know how that works if one agent is asking for more. My comps are low compared to other units~many of the others don't even have central air. I've got numerous upgrades, but don't feel I went over-the-top for the market~granite, but not new cabs, just updated with paint and trim.

    Buyme, i'm sure that happens more than we realize. If I do decide to take mine off the market for awhile, it will be relisted in the spring. It's Austin or bust!!!LOL

    Bethesdamadman, it's not that cut and dried where a buyer *has* to accept if the asking has been offered, but I haven't a *clue* why. Roselvr, terri, and roselvr, are the experts where technical questions are concerned. If one doesn't have the answer, the other two certainly will. You sound like you 'know your stuff' also. Is the area of law your speciality?

    Calliope, so true about the emotions involved, but I 'took them off' when I went to bed last night.LOL I don't want to 'play' price games either, but when listing initially, that was the choice(dual pricing)I allowed my agent to make~hey, he's the pro, not me. I'm below the comps also, but that doesn't seem to matter since it's all about the price and what people can afford. I thought when I first listed I was being fair, and still do. Although i'll still be making money when I sell, I don't think of myself as being greedy. it's what the market is or isn't. Sure I could sell at $200K and buyers would be beating down the door, but that isn't realistic. I'm just trying to stay in the market range for my area, even slightly below. There's one condo that has been on the market 65 days and the price hasn't been adjusted once. I don't know the story behind it, but my agent said it isn't a short sale. The best of luck to you, but don't waste the time or effort on open houses. In the long run, it's the agent representing you who comes out ahead.

    Thanks again for being here everyone! ;o)

  • sweet_tea
    15 years ago
    last modified: 7 years ago

    "...am I watching my competitors? Like a hawk! Not one of them has dropped their price in the time i've listed~should that be telling me something? "

    Not one of your competitors sold either, have they. This should tell you that they might be overpriced, just as you might be.

    When I had my home on the market, my competitors where all priced higher than me. They didn't budge. I priced lower than them and SOLD. It has been many months and they still are on the market. Several of them finally dropped their price. Problem is, the market has dropped even more and they are still priced a tad bit too high for the market.

    This is what can happen if you price too high to start with...you lose time while "holding out"...and the prices drop even more.

    You must price aggressively if you want to sell in an extreme buyer's market.

    How about you spend a few hundred dollars and get an appraisal from a licensed appraiser. This may end your guessing game. What you WANT to get might not be really what the market value is.

  • kylie_m
    15 years ago
    last modified: 7 years ago

    Patty_cakes, I am familiar with your condo complex. Not only is the complex very nice, but the location is excellent... tucked away but also a "hop, skip & a jump" to everything. I'm sure the right buyer will come along.

    Also, I noticed you commented about after a period of time, relisting in the spring. We sold our La Mesa house in the month of December and a few years later sold our Penasquitos house and moved to Escondido during the month of November. So people DO buy and sell during the 'holiday season'.

    I will keep my fingers crossed for ya.

  • patty_cakes
    Original Author
    15 years ago
    last modified: 7 years ago

    Kylie_m, now you're given me food for thought! *My* thinking was with holidays, prospective buyers are not shopping for a home, but gearing up for those holidays. My REA didn't give me ANY feedback on this issue, no pros OR cons. Since you live in SD and have sold/bought during that period of time, you are probably right. What have I got to lose, other than NOT selling my condo if it's not on the market? Thanks a bunch!

  • patty_cakes
    Original Author
    15 years ago
    last modified: 7 years ago

    Since you're familiar with my area, look at my competitors(Mariposa/red tile roof units)in the 92120 zip, and give me some feedback, will ya? Thanks.

  • lyfia
    15 years ago
    last modified: 7 years ago

    Trish - I've always been able to negotiate the seller's agent commission when signing a contract. The last time I sold I paid the sellers agent 1.5%. However I would never dream of paying less than 3% to the buyers agent as in mine and my friends experience including the buyers realtor that we used (can't use him for the current house due to different areas) they all say it is very rare that the listing agent is actually the one bringing in the buyer.

    I've also negotiated down the selling comission if the buyer doesn't have representation so that the selling agent then got 4.5%.

    In exchange for this I've been happy to cover the expense such as flyers etc. Which to me is a win situation as I've been there to make sure the box was filled and the cost in our last selling was a lot less than the 1.5% we'd be paying.

    I would consider paying the full 3% if I could find a selling agent that actually did the work that that amount would compare to, but I have yet to find that person in my area. We will see this next time around what I can find.

  • theroselvr
    15 years ago
    last modified: 7 years ago

    No, roselvr, it does not depend upon the state. An offer to sell does not obligate the owner in any way whatsoever to sell the house in any jurisdiction in the United States. It is a basic tenet of contract law. What you are referring to is the agent perhaps not letting the owner out of the contract provision of the listing agreement which would obligate the seller to pay the agent the commission. But again, that does not obligate the seller to sell the house.

    You're correct, when I said not quite, I meant about being let out of the contract, I don't know about commission, or if the buyer had to sell the house or not, I said the agent didn't want to let the seller out of the contract so she was tied into the agent for 6 months to a year - I actually think it was a year contract, which was stupid. I would hate to see Patty Cakes being tied to this guy for longer then she wants to be.

    I don't want to get too specific as this is a public board. An agent can get vengeful and not really advertise the house either, all the while keeping them tied with the contract. This would hurt if the agent didn't offer that they could cancel for any reason.

    Wasn't there a post here about this subject back in March or April?

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