I’ve been watching this particular house since a client of mine made a good offer on it that was rejected. Below is an interesting tale of ALL the things NOT to do if you are a seller:
This house was listed for $259,900 in February of this year. It was waaaaaay over priced. First mistake. Back then, the market was really gaining momentum and houses were selling quickly. It was slowly reduced to the point where my clients wanted to see it. I told them it was overpriced.
The house showed beautifully since the seller had high end furniture and an obvious skill for decorating. Upon closer examination, I could tell that it was really just your average 15 year old home with 15 years worth of wear and tear. The cabinets were in bad shape. Only the downstairs flooring and appliances had been updated…..but it looked pretty.
We made an offer of $232k that was countered for $244,500. All along the listing agent had been telling me how motivated the seller is since they were being relocated. I never buy that line from a listing agent since it usually means their seller is motivated to get top dollar. Motivated sellers price their house just below market value for a quick sale, not over it! My clients came up to $236k, which was right inline with the comparable sales at that time. The seller didn’t budge.
We move on, my people buy another house that was even better. My last email to the listing agent after arguing over comps in the neighborhood, the market and price was “I don’t see them getting more than that, especially once they move out and it is vacant. The house looks fancier than it is due to their furniture. If they don’t take our offer, I would suggest they leave a lot of their furniture to keep it staged.”
The house was reduced, reduced, reduced until it finally got a contract. The last list price was $235k. It closed for $230k……which is $6000 less than they could have had many months ago from my people. What happened????
Lots of mistakes here in addition to starting out too high. To begin with, they were not living in reality, and they paid for it. They thought we were ridiculous to offer a number so far off from their list price. They sat on this house through Spring 2013, which was the hottest seller’s market I have ever seen. That alone should have told them something was wrong if they could not sell then. Next, they moved out and took all their pretty furniture. Now it is late in the summer, the buyer frenzy is cooling off, and their house is vacant. To get it sold, the ended up selling for LESS than it was really worth. Somebody got a decent deal on that house.
Long story short…….a series of bad choices is a good way lose money on your house.