Thread: Interest increase or price reduction

Originally Posted by cottoncrew

I am currently going through the joys of trying to sale a home. It's been on the market for about 6 weeks at 119k. Also with this club I am affliated with I recieve a interest break. My selling agent gets 3% and buying agent gets 3%, but the Michigan standard is 3.5% and 3.5%. So it has come time to lower my price to spark more interest. I have looked at this two ways. 1) I lower my price to 116k and keep 3% and 3% which I get through this club, or 2) I lower to 117k and keep selling agent at 3% and raise buying agent to 4%, in an effort to get more hits on my home. I am sure my agent would not be overly thrilled with option 2, but that same 4% is available to them as well if they bring in a buyer. Any opinions on this matter would be appreciated.

I routinely give more commission to the buyers agent than I get on listings. Give the buyers agent 4% and if your agent complains ask them if they want out of the listing. They should be thrilled that you are proactively trying to sell your house.

Originally Posted by cottoncrew

I am currently going through the joys of trying to sale a home. It's been on the market for about 6 weeks at 119k. Also with this club I am affliated with I recieve a interest break. My selling agent gets 3% and buying agent gets 3%, but the Michigan standard is 3.5% and 3.5%. So it has come time to lower my price to spark more interest. I have looked at this two ways. 1) I lower my price to 116k and keep 3% and 3% which I get through this club, or 2) I lower to 117k and keep selling agent at 3% and raise buying agent to 4%, in an effort to get more hits on my home. I am sure my agent would not be overly thrilled with option 2, but that same 4% is available to them as well if they bring in a buyer. Any opinions on this matter would be appreciated.

A price drop the size you are suggesting will not even been noticed by the very few potential buyers in the market. At your price range you would need at minimium a $5,000 price reduction for it to make any sense. If you wanted to make the home stand out I would suggest making the list price be exactly whatever the closest cut off on the search engines for your MLS. To give an example lets say at your price range that when a search is made in the MLS based on price you have 110K, 115K, and 120K for price point cut offs. I would have the house listed at $120,000 so that people that have the lower limit of their price range of $120,000 also have your home come up on their search. Where you have it right now anybody looking from $120,000 and above will not even see the home come up on their search. This is bad news and easily avoided.

I believe that you will recieve more traffic by listing at $120,000 and offering 5% to the buyers agent and 3% to your listing agent then you will get on either of the scenarios that you provided. It should be noted that if you home is over priced right now no incentives that you could offer will help as if you do get a contract at an overpriced value the appraisal will kill the deal. Agents and incentives can make sure that you get the very highest price possible for you home but it can not get you more than the appraised value. If you are going to make a price reduction it needs to be down to the next price point cut off in the MLS search engine or the price reduction will do you absolutely no good. As the only thing that will come of it is that you will look desperate to those that have already noticed your home.

The only way a price change makes a difference is if it is enough to stimilate the previous interest in the home by individuals that have already seen the home. This is seldom done for less than a $5,000 price reduction. If you want new people to be noticeing your home you must lower or raise you price to the next cut off in the MLS search engine. You will see the most difference if it is done and not up but sometimes your home being on the bottom of the price range for someone can make it seem like a much better value than the other homes they are viewing. Good luck with whatever you decide to do. Just remember that you need to get the price on one of the search engine cut off points or you are limiting the potential viewers for your home. At $119,000 you are definitively not at one of these cut offs and are thereby limiting those who even know that your home is for sale.

I think you are paying much more interest for home sell or buy..I think you should try any other dealer who can give you the better price.and you can also sell or buy it online..Now it's easy to deal online.

I know the agents will not like me for this, but you can try to do it FSBO if your home doesn't sale. You can market it on craiglist.org, which gets a tons of visitors each day. The only problem is you will have to screen the buyers yourself and schedule showings. But you can pass the savings onto the buyer, which might close the deal.

Originally Posted by Vegasloanlady

You can market it on craiglist.org, which gets a tons of visitors each day.

Thanks for the recommendation. Is their any other online resource available? If you know about it then please suggest me.

Sofia

With the help of Google yesterday I find out one online resource that can help to buy or sale homes in Detroit. Numbers of properties have been listed on their website buyhomesdetroit.com. They provide us information on Detroit Homes and Detroit foreclosure.