CP is right. Dont just go with the neighbor. As far as I know the Twin Cities is still somewhat above average but that can be very neighborhood specific.

Your best source of local real estate information is at your fingertips!

MLS, Zillow etc. enable you to keep up with all recent listings and sales. And for general market information, simply Google up Minneapolis home sales.

You can use those third party sites, but you should still rely on an expert to fine tune the price point. Tell this agent to come over to your place and present new comps to justify his requested price drop. If they don't make sense, move on with another agent.

Thanks to all for input. I have researched online and I see no indication the market has declined at all, let alone 11% in the last six months, which he is suggesting from his first analysis when we put in on the market. He has presented comparables to support his price. Admittedly, I am a skeptic, but I think an agent can pull comparables to support a wide range of prices. Ultimately we need to get another opinion, unfortunately my husband won't go for that. Either we were priced considerably out of market range to start, or he is low-balling it now, or a little bit of both. It's ironic that one of my initial concerns of using him as an agent, is that he could potentially try to control who he would have for a new neighbor.

Well, 141 houses closed within the last 3 months in the $600-700K range in Minnepolis. I'm not sure if that qualifies as really slow over 2 major holidays during winter; it seems like a decent # to me. Question: are you still under contract with this agent? It's been a long time. I would certainly get 2 more agents opinions but before that, arm yourself with some info.

Redfin is unbeatable with it's info AND user friendly. It's also dead on $$ wise in most instances in suburban Boston....unlike Zillow. You can go into search, type in all the features of your house, excluding "new construction" etc and then select For Sale or Sold and pick a length of time for Sold....I picked the last 3 months @ $600-700, 3 beds, 2.5 baths; thats where the 141 sold homes came from. (I'm using those features as they're kind of an average min in that price range) It'll give you all details and maps of the houses sold during that time period. You can refine even further obviously to really get some good comps & you probably have knowledge of which neighborhoods are similar to yours. Pick 6 months and see just how slow the market was in your price range.

BTW, according to your local papers, and contrary to what your agent is telling you, Minnepolis prices are currently UP in Jan/Feb due to a very low inventory! His saying it's "slow" is a big red flag. Looking at Redins map, most houses seem to be listing for above $600 in the most basic 3 bed+ category.

Do some research first and then get another agent or 2 in there....smells kinda fishy to me.

Sorry, I was typing and didn't know you'd already responded. Why won't your DH go for meeting up with another agent? This is a LOT fo $$ you're talking about leaving on the table possibly since the market is a sellers market right now.

You are learning a valuable lesson with this that you never use someone that you know for really important things. Sadly since your husband does not want to take the effort to learn that his "friend and neighbor" is not perhaps the most ethical person he may not want to obtain another agent.

Jama7, thanks for that insight, I will look into those resources.

maifluer, I agree 100% and this is exactly why I didn't want to use him to start. My husband has a much rosier perspective on humanity than I do. When I suggested another agent today he said "he couldn't do that to him". I know our agent is going to put himself before us and I nearly vommitted when our agent assured us he would "never" tell his friend what we are discussing for pricing because "he represents us".

Needless to say, wine is my BFF this week.

Does your DH object to YOU handling this? Seems like you have the proper attitude. Normally it's a fear of confrontation that people like him have in addition to their trusting natures. Get ALL the facts/figures you need and just let those #'s speak for you. Doesn't have to be a big "we don't trust you" confrontation.

Actually my DH isn't afraid of confrontation, he just sees this situation different from me. He focuses on the comparables that fit our agent's story, I focus on those that support my skepticism. Ultimately we will likely meet in the middle and see how the market plays out. I will definitely put my foot down on the price if it comes to selling to our agent's friend before it goes to market.

Try to get your husband to see that it's always a good idea to get comps from several agents to make sure you're pricing it right. Ask him how he'd feel losing $30k or whatever the difference is? I know I wouldn't like it.

The OP said, "Thanks to all for input. I have researched online and I see no
indication the market has declined at all, let alone 11% in the last six
months..."

Your premise is wrong. Clearly your home was overpriced when you tried to sell last year - or you are in denial about "issues" or other factors.

The new suggested selling price is 11% below a price that you reduced $35 K - thus acknowledging that the home was overpriced. When it did not sell after you reduced the price it again suggests that also was not the propety's true value.

I'd have a hard time coming to that conclusion so fast... it was only on the market for two months total time... probably a very short time at the $635,000 point.

It is best if she gets a second opinion, merely for the fact that she is doubting what price is correct.

Have you looked on line as to how your house is listed? There may be something on it that can give you a clue as to why it did not sell. However no matter what you find out until your husband realizes that the agent may not be acting in your favor there is not much you can do about it.

Start looking on line at similar houses in your neighborhood to see what they are priced at. Minneapolis is expensive so $600K is not out of line with what I see when I looked for houses near my niece who lives in the Powderhorn area and most areas are more expensive than there.

Not trying to cause marital discord, but has your husband considered what your Realtor/neighbor is potentially doing to you both?

Both of these people in the potential sale are local Realtors with all relevant neighborhood comps at their fingertips. They both know exactly the values in your area. And they're "friends". All of it seems way to cozy for comfort, and points to the reason that you really need to get comps from other sources.

Is he, in fact "trying to pick his neighbor"? I don't know, but it appears that he's trying to get a friend a "rate". Now- maybe this is all on the level, and you could benefit from a quick sale. But it's not even close to an arms length transaction, and that puts you at potential risk. Get independent analysis to insure that you're getting the best advice possible.

EDIT: And remember that it doesn't matter what houses are listed at, just what they're selling for.

Laura the reason I suggested she look at what houses are listed at is because she and her husband probably did not suggest the original price. Owners do suggest what they would like to receive but a good realtor will tell them what they are more likely to receive be it higher or lower than what the owners thought the value was. I know this is one sided and we only have the wife's thoughts. I have seen things, not houses, priced so much higher than market value then when they did not sell a friend of the agent purchased them much less than if they had been marketed at their actual value on the market place. Same principle. Also in looking at the pictures she may notice why other than the price her house has not sold.

Edited to add if she finds a house that is similar to hers and in the same area she can actually show her husband the price that it is listed for. Then if it is removed or listed under contract it will provide her husband something to think about rather than he would be shafting his next door buddy.

You and I agree that sometimes properties are listed at unrealistic prices, as dictated by the homeowner. I don't suggest that's what happened to the OP- not nearly enough info- but it happens.

You and I completely disagree about your edited section. This is a nonprofessional guessing game that can cost valuable time. Maybe the property appears similar to theirs, but the homeowners were motivated to get out. Maybe they listed it low to get out quick. Maybe they listed at an unrealistically high price, but the perfect storm happened-somebody who wanted it badly. Maybe it was staged better. Maybe marketed better. Maybe nicer, overall.

The point is that this is a very clunky way to determine values-if a layperson can do it at all. One, most often- for laypeople, it is nearly if not completely impossible to determine what a property has actually sold for in real time.. Easy to see what the number is when it goes "pending", but that is no guarantee that it's what the actual sales price was. Need to wait for it to be recorded. That takes time, or a Realtor's networking, and Minneapolis is a very robust market. Takes time to record. And then the homeowner needs to get the county recording- that takes time, too.

This is just a little bit of the value of a good Realtor, and it seems nuts to have a Realtor and do that much leg work, as a client. I'm not a Realtor, but a client, and I'd never do that much work to put a commission into somebody's pocket.

It does occur to me that if the OP and DH decide to stay with current Realtor, then before they put it back on the market, they need fresh comps-sold properties in the time they were off the market. That's a great way for them to assess basic price per square footage in their area at this moment, and the best way to set a price.

You. Outdoor have another agent come & give his quote. If it is closer to your original you could nicely present to neighbor/realtor what another agent said.

Laurie the problem is that the OP is not certain that the Realtor is working for her or her neighbor's friend who the Realtor want to purchase the house. Your suggestion of fresh comps is excellent if the Realtor is ethical which from what the poster has written does not sound like what is happening. Perhaps the OP will return and confirm who set the original price, the home owners or the agent. My suggestion was for her to have something to show her husband and/or remove some of her anxiety.

Looking at the properties for sale in the neighborhood that are comparable to the OP's home is only one side of the coin. The Realtor needs to show you actual comps which are properties that are similar to the OP's home that have recently sold and closed.

In your shoes, I would interview a couple of Realtors that are not your neighbor. It's possible that the list price was high last time or not marketed to the right buyer's or an error or two was made in the listing. I see it all the time in the MLS. Other times it could be the condition of the property or the way the marketing materials are presented, we really don't have any idea with the information provided so far.

We do know the market changes over time. We also know that comparing neighborhood A to neighborhood Z across town is not the right way to determine market value for your home. We also know that the comp selection part is extremely important and I have seen owners close their minds to similar properties in preference for properties that have sold for higher prices but simply are not comparable to the subject property. This is one sure way to extend market time and have an unsuccessful result. I'm not saying that is what happened here. I am saying, check your home's features against those that have recently sold in your neighborhood so you are using actual comparable properties and not just neighborhood sales. Naturally, your agent should be doing this and providing a written report (or electronic) with the data to back up their analysis so you can make an informed decision and a listing & marketing strategy.

This is a business transaction. I understand your DH's inclination to stick with a neighbor agent, but tens of thousands of dollars could be at stake, not to mention the additional time on market and stress that brings. If your DH can't separate his emotion from the task, then I hope you will interview realtors on your own to get some additional insights. Reassure DH that you value his perspective, and you also value all his hard work to make money, so you're just trying to do right by your family and make sure you get a fair price.

Last year a dear friend had to get another agent when selling her $1M+ home. The first agent has been a friend for 30+ years (vacationing and owning a lake house together) and it was a very tough decision, but it came down to being a business decision. They're still dear friends, because the first agent is a professional and understands the difference between business and friendship.

Thanks for all of the input. For clarification, our agent set our original price last summer. My husband and I actually thought it should have been lower to start, but our agent disagreed and thought we could get more. We were all in agreement on the first 25k price reduction (650k) after two weeks on market. After another two weeks, we had to convince him to reduce it another 15k (635k). Clearly it was too high to start. No, it was never worth 675k. My point is, that when an agent is setting the list price of a house, he should use the same methods of pulling comparables and establishing list price. If he used the same methods now, as he did last summer when he set the price, he is suggesting an 11 percent decline in the market from last summer.

In effect, you are saying his price was wrong last year but is now correct? This is due to applying the wrong methodology last year but using the correct one now.

Are you getting a new agent now?

Saltidawg, clearly he is using two different "methodologies"...which is why I posed this question....perhaps putting his interests before ours. Could his current pricing be accurate? Yes, it could.

Why is it clear? If the Comps selected were not accurate, that does not invalidate the methodology, just the result.

What else do you want or expect from this thread?

Are you getting a new agent now?

Well, with that logic saltdawg, I think our agent was spot on with his pricing last summer, and now, so why should we get another agent?!?!! It was foolish of me to think that he would be influenced by having his BFF as a neighbor. Certainly he would never put his interest before ours, because the real estate industry has a standard of ethics second to none. This is exactly the insight I needed from this thread, so thank you saltdawg!!!

Elmer give her a method to convince her husband that his friend the realtor, who lives next door and wants the house for his friend, is not doing the best for them. She sees it as she has posted above but her husband like many wants to be loyal to his friend. If you had read all of her posts you would have known this.

We are getting other pricing opinions and will decide from there.

Excellent! Something to consider if you stick with your current Realtor, and he brings his Realtor client to the buying table, before it hits the market:

1. Make sure you get current comps, before entertaining an offer.

2. Consider negotiating the commission down. Commissions typically reflect initial/ongoing marketing costs, work performed in showings etc. If this is a one and done, he has none of that.

I have no issue, in general, with the percentage commission a Realtor makes, given that they front a lot of costs and work to get it done. If, however, all that's done is one viewer, one negotiation, one offer before even MLS listing, then there are little to no costs on his end.

You don't want to punish a Realtor for having a client in his pocket ready to buy. On the other hand, you also don't want to pay for work/expenses that don't exist in the new listing.

Good luck!

From some recent experience working with realtors, it sounds pretty common for brokerages to encourage their agents to bring their own clients in to view properties before they go on the market. That said, it is not always in the best interest of the client to take such an offer. A friend of mine was working with an agent who brought in his own clients and they made her a full price offer, but with a contingency for the buyers to sell their own home. We're in a hot market and I encouraged her to still list the property and accept offers for at least 48 hours before settling on an offer that came in without competition. She opted to list the property and received 4 offers within 48 hours and was able to select one that was over asking without a contingency.

When I worked with realtors to sell my house, they came prepared with comps showing us recent comparable sales in our market. Essentially these are the facts that a realtor uses to properly price your property. The fact that your home was listed and did not sell even after several price reductions suggests that your final list price of 635k was probably still too high. If your realtor has not already, ask him to show you comps to justify the 600k price and be realistic. Regardless of the price, I'd be inclined to put the property on the market rather than accepting any under the table offers, unless there is some significant benefit to you (such as reduced realtor fees) that would compensate you for not allowing the market to determine the fair value of your home.

Spend the money on an independent appraisal. I find it hard to believe that any market has declined considerably in 6 months. Most of the country is in a sellers market right now.