"But I Haven't Even Had an Offer!"

"But I haven't even had an offer" was the cry from the seller when I showed her why a price reduction was necessary if she wanted to sell her former home.

indecisionShe did want to sell; she had already moved and the home was vacant. The monthly upkeep was an expense she didn't need, and the interim financing she obtained that allowed her to move before selling was costly.

Our initial list price was based on the market, and an appraisal, when we first discussed listing the property. By the time it went on the market several months later, it was apparent that prices had dropped. She had gotten that first figure stuck in her head, and "wanted to try" and see what would happen.

What happened was painful for both of us. After several months of showings, but no offers, she agreed to a small price reduction (approximately 2.5%.) Nothing changed; we were still too high and we both knew it.

"But I haven't even had an offer" was her rationale for not reducing the price -- she knew it was priced too high, but wanted an offer, that elusive offer which wouldn't come.

Three weeks ago she finally agreed to lower it to a price where it would sell, (another 4% reduction.)

And then the excitement started. A week later 3 parties downloaded disclosure documents. One couple came to an open house, and then visited another 3 times. An executive working in China came to town and realized what a good base it would make for his Peninsula office. Real estate agents were back on board, showing the house and downloading disclosures. Excitement was in the air.

On Sunday two offers came in, from 2 well-qualified buyers. The seller chose an excellent offer and we're now in contract. I expect all will go well from here until closing and the seller is happy.

If she had looked at the comps and the market activity, a number of months of uncertainty and expense might have been avoided.

This is not a time to 'test the market' or "but I haven't even had an offer" will be heard over and over again.

--- Come for a visit; Stay for a lifetime!

Lottie Kendall, Realtor®

Pacific Union International

CA DRE#10215160; 650-465-4547

Lottie@LottieKendall.com

www.LottieKendall.com

Peninsula Living Business Page

www.SFCondosForMe.com

 

 

Comment balloon 10 commentsLottie Kendall • October 18 2011 11:44AM

Comments

You've got it right!  If there aren't any offers, your price isn't right!  Way to go with determination.  Hopefully escrow will be smooth and you'll be on your way to getting referrals from this client as she brags about your abilities to all of her friends and family!

Posted by Cara Marcelle Mancuso, Call a Marana neighbor, I'm THERE! LONG REALTY (Long Realty - Dove Mountain, Marana AZ) almost 7 years ago

It's much harder to price high and chase the market down than it is to price it well right away. Reductions are a necessary part of the business these days. 

Posted by Malcolm Johnston, Trenton Real Estate (Century 21 Lanthorn Real Estate LTD., Trenton, Ontario) almost 7 years ago

Bottom line is you've got two offers from qualifed buyers................that's great if you ask me.

Posted by Roger D. Mucci, Lets shake things up at your home today! (Shaken...with a Twist 216.633.2092) almost 7 years ago

"But I haven't even got an offer" is the reason why it needs to be priced lower.  She didn't realize she was pointing out the problem while you were giving her a solution.  It's tough but I'm glad she is happy and that it's all working out.

Posted by Andi Grant, Helping 1st time buyers and home sellers in LA! (310-508-4354 | FirstTimeHomeBuyerRealEstate.com) almost 7 years ago

Hi Cara, bingo! I have a feeling all will be well here.

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) almost 7 years ago

Malcolm, you surely have that right. In our market it's far better to price a tad low, then let the market bring it up.

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) almost 7 years ago

Two offers from two qualified buyers is wonderful. We're happy, Roger!

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) almost 7 years ago

Hi Andi -- try as I do, sometimes I just don't seem to be able to help people see the importance of pricing to sell. But, all's well that ends well.

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) almost 7 years ago

That's kind of the duh moment.  Exactly.  You haven't even had an offer.  It is most definitely overpriced.  Cogratulations on getting it don, Lottie.

Posted by Jane Peters, Connecting you to the L.A. real estate market (Home Jane Realty) almost 7 years ago

Thanks, Jane. And I just got much needed price reduction on another listing, too. I think I'll be busy with it this week and next!

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) almost 7 years ago

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