Selling my house in these uncertain times

[Carol1862]

6 weeks ago, a day before closing our buyers backed out. We were able to purchase our new home still but we are in a difficult situation. It is now empty (it showed quite nice when I had it furnished) and obviously no one is looking. I had one showing and it turned out to be only a realtor doing a tour for her client who lives out of state.

We dropped the price, but still nothing. I’m ready to really drop the price, lose money and be done. My realtor keeps telling me to hang in there. That it’ll pick up once the pandemic crisis abates. Personally, I think that many people lost their jobs and others are too nervous with the markets to make a major purchase and move right now. Who wants to deal with all of that during a pandemic??

I’m in coastal SC where a lot of Northern retirees move to.

My question is how much do I drop the price? 10%, 20%? I’m willing to take a loss to get out. My fear is that things could get really ugly in regards to financial stability. I believe eventually things will turn around. But not for a while. Just my opinion.

Your opinions on this are greatly appreciated.

 

[Teacher Terry]

We were once in that spot and had to drop it 20% to get rid of it. I really feel sorry for you.

 

[bobandsherry]

You might look into options to stage the house, as you mentioned it doesn't look as nice without your furnishings.

 

[SnowballCamper]

If you're still close, and have the aptitude, could try renting.

When we recently sold some property, I told the realtor to write something like, "All reasonable offers considered" in the description. It sends a signal to buyers that a lowball offer won't be dismissed out of hand as an insult. Worked for us.

 

[Aerides]

Personally I'd wait and watch comps, stay competitive with similar properties, maybe a hair cheaper, but not take a big chop.

Also, I know I'm in the minority, but I love looking at homes that are empty - I can really get a feel for the space and what would work, and I don't have to overlook the (usually) pre-existing furnishings which are probably not my taste. A savvy buyer knows that an empty home means a more eager seller, so you can then leave your realtor with options to drop the price a bit once they have someone interested.

 

[pb4uski]

... Also, I know I'm in the minority, but I love looking at homes that are empty - I can really get a feel for the space and what would work, and I don't have to overlook the (usually) pre-existing furnishings which are probably not my taste. A savvy buyer knows that an empty home means a more eager seller, so you can then leave your realtor with options to drop the price a bit once they have someone interested.

+1 I prefer empty... it makes it easier for me to visualize how I would use the space.

But I realize that I am in the minority and the conventional wisdom is to have the house staged.

 

[REWahoo]

+2

I much prefer an empty house when home shopping.

 

[samm]

Drop asking price 10-20% to attract interest of many buyers/realtors. Get multiple bids and take the highest...or get them to bid higher. You do not have to accept bids....but you will see where the buyers are.

Prices are collapsing in Las Vegas where I live. The older retirees want to get out of homes and downsize. There are now more old baby boomers than young ones...not good for prices.

 

[davebarnes]

Think about minimal staging.
0. Many buyers are incapable of visualizing anything.
1. Put the largest (king, hopefully) size-labeled, fake bed in the master bedroom. You are just demonstrating that "their bed" will fit.
2. Put a large, with chairs, table in the dining room.
3. Ask your agent what else you should stage.

 

[COcheesehead]

Think about minimal staging.
0. Many buyers are incapable of visualizing anything.
1. Put the largest (king, hopefully) size-labeled, fake bed in the master bedroom. You are just demonstrating that "their bed" will fit.
2. Put a large, with chairs, table in the dining room.
3. Ask your agent what else you should stage.

+1 Most people can’t visualize spaces. Stage it, even if minimally.

 

[Markola]

I figure this is why one hires a good realtor. They do this full time and you don’t. Maybe listen to them or get a different one whom you respect enough to listen to?

 

[michelek]

How many homes have sold in the last 30 days in your area and for what price? How many showings per listing in your market? What’s the absorption rate?

If there’s no meaningful activity then dropping your price won’t make a difference at all in terms of actually attracting a buyer.

For example, back in the 2008’s we had a house for sale that we really wanted to get rid of. We dropped the price $250,000. Still no buyers. Because there were not any buyers to be found! In the end that price drop really hurt us and our neighbors too bc appraisers look at recent sales and also current on market homes when they are doing sales plus refinances too!
That price drop also stayed on the MLS even when we sold the house 10 years later. The history is there and it hurts your negotiating power.

If there are no Buyers now, don’t waste your time dropping a price for nothing.

I can tell you in my market today there aren’t many buyers unless the homes are under $260,000. It’s even hard to find renters right now. I don’t know if people are just freaked out temporarily or if this is a long term demand adjustment.

It’s the most bizarre market we have ever encountered!

 

[Carol1862]

How many homes have sold in the last 30 days in your area and for what price? How many showings per listing in your market? What’s the absorption rate?

If there’s no meaningful activity then dropping your price won’t make a difference at all in terms of actually attracting a buyer.

For example, back in the 2008’s we had a house for sale that we really wanted to get rid of. We dropped the price $250,000. Still no buyers. Because there were not any buyers to be found! In the end that price drop really hurt us and our neighbors too bc appraisers look at recent sales and also current on market homes when they are doing sales plus refinances too!
That price drop also stayed on the MLS even when we sold the house 10 years later. The history is there and it hurts your negotiating power.

If there are no Buyers now, don’t waste your time dropping a price for nothing.

I can tell you in my market today there aren’t many buyers unless the homes are under $260,000. It’s even hard to find renters right now. I don’t know if people are just freaked out temporarily or if this is a long term demand adjustment.

It’s the most bizarre market we have ever encountered!

First, thank you to all who responded. It seems to be a split between staging and empty. Our realtor is good and admits that in her 30+ year experience selling in this pandemic has its difficulties, but she’s a bit overly confident.

Michelle, I think you have stated some very valuable points that my husband and I have to strongly consider.

 

[SmallCityDave]

6 weeks ago, a day before closing our buyers backed out. We were able to purchase our new home still but we are in a difficult situation. It is now empty (it showed quite nice when I had it furnished) and obviously no one is looking. I had one showing and it turned out to be only a realtor doing a tour for her client who lives out of state.

We dropped the price, but still nothing. I’m ready to really drop the price, lose money and be done. My realtor keeps telling me to hang in there. That it’ll pick up once the pandemic crisis abates. Personally, I think that many people lost their jobs and others are too nervous with the markets to make a major purchase and move right now. Who wants to deal with all of that during a pandemic??

I’m in coastal SC where a lot of Northern retirees move to.

My question is how much do I drop the price? 10%, 20%? I’m willing to take a loss to get out. My fear is that things could get really ugly in regards to financial stability. I believe eventually things will turn around. But not for a while. Just my opinion.

Your opinions on this are greatly appreciated.

What was the reason for the previous buyers backing out?
You may consider pulling it off the market for a week, very light staging along with a 5% price reduction. Make sure it's input as a new listing.
All the best!

 

[Carol1862]

What was the reason for the previous buyers backing out?
You may consider pulling it off the market for a week, very light staging along with a 5% price reduction. Make sure it's input as a new listing.
All the best!

It was a second home purchase for them. She said she lost her job. I believe she got cold feet. In SC she gets her entire escrow (only $1000) back. Bit of a long story that wouldn’t interest any of you, but we, along with her own realtor and ours, believe she did not lose her job. Bottom line, we have to get this house sold. Taking all of your advice for consideration. I will let you know when it does sell.

 

[SmallCityDave]

It was a second home purchase for them. She said she lost her job. I believe she got cold feet. In SC she gets her entire escrow (only $1000) back. Bit of a long story that wouldn’t interest any of you, but we, along with her own realtor and ours, believe she did not lose her job. Bottom line, we have to get this house sold. Taking all of your advice for consideration. I will let you know when it does sell.

I can't speak for SC but unless there was a special provision in the purchase contract a job loss does not get them out of the contract, if they were getting a loan and now no longer qualify for the loan they need to provide that documentation to your agent with the cancellation letter.


Obviously the laws in SC may be a lot different, best of luck!

 

[Gallaher]

Listen to your realtor. That’s why you pay them. In real estate everything sells at the right price. You can give it away but keep in mind we have a pandemic. That pandemic will decide what happens to your sale.

 

[tryan]

Drop the price 5% every couple weeks. Eventually you'll hit someones number. There are people using this chaos as an opportunity. (I am looking at 3 properties this week).

If losses get too painful rent it out for a year to cover you costs. If you're in a resort area (as indicated by the prior buyer being a second home buyer) use airbnb, homeaway, vrbo ....