How can I compete with foreclosures?

**kcrowder** · 02-20-2009, 10:50 AM

I'm a Realtor in Murfreesboro TN and I have had a house listed for about 8 months. The seller has moved out of State and she has been paying 2 mortgages for sometime now. The house is 2383 sqft and listed at $204,000. (Originally listed at 213,900) That is a great deal but unfortunately several foreclosures has started popping up around the neighborhood and selling for $190,000 or less and everyone buys those houses instead of my clients. The problem is she can not sell the house for less than $195,000. We get a lot of activity and a lot of people want to rent the house but my client wants to sell because she lives out of state and does not want to mess with rental properties. So I guess my question is, does anyone have any great marketing ideas where I can get more people in to see the house? One advantage is the house has more square footage than the other houses in the neighborhood but I just can't seem to get anyone in there except for people that want to rent the house. Any suggestions would be helpful! Thanks!

**markbrian** · 02-20-2009, 11:32 AM

No amount of marketing will make up for an overpriced listing.

**Lakeshore Lad** · 02-20-2009, 01:05 PM

Unfortunately, it sounds like foreclosures are driving your market like so many others in the country. Your buyer may either want to look into a short sale, or wait until all of the foreclosures have been flushed out of the market. In this day and age, you're not going to trick someone into buying your home over others priced significantly lower. Buyers have so much access to information and most are looking at foreclosures due to the press surrounding them.

**Codythebest** · 02-20-2009, 02:16 PM

She must offer what bank can't: Owner's terms.
But yes, nobody can compete agaisnt foreclosure unless something unique. We need to get rid off all foreclosure before having the market back on track...

**foreclosureoftheday.com** · 02-20-2009, 02:36 PM

You can get creative and offer some unique terms or lower the price to the "market value". Unfortunately foreclosures drive the market price.

**Greg** · 02-21-2009, 07:09 AM

If she has $5,000 she can sell it for $190,000 and pay the difference out of her pocket. If the rest of the neighborhood is selling for $190,000 then she has to do the same and she has to do it now before the prices go any lower.

Waiting is not in a sellers best interest in a declining market.

**gwagner** · 02-21-2009, 08:18 PM

Originally Posted by markbrian

No amount of marketing will make up for an overpriced listing.

That is the honest truth!

Warm Regards,
George Wagner
Bulk REO and Commercial NPN Supplier

**thomas12** · 02-23-2009, 12:26 AM

Foreclosures are really very interesting a deals but the client houses in turn are ignored by many as they are less attractive.

**markbrian** · 02-23-2009, 09:50 AM

thomas12 is right that foreclosures can be interesting deals but they may have the advantage of lower price but condition is also very important. And any agent that has shown very many foreclosed properties can attest to the serious condition issues of foreclosed homes. Plus the fact that the properties are often sold AS-IS, often with no appliances or heat source, it can make the reason foreclosures are priced so low apparent.

**Jenie0109** · 02-23-2009, 07:44 PM

As far as condition of foreclosures go, some are beautiful, some are.. well.. "okay" houses.Remember, You are not competing with a single foreclosure. The bottom line is that foreclosure is going to set a price point in your neighborhood. Either you beat their deal price wise now, or your future buyer will have a tough time with the loan, because of the appraisal from the selling price of that and all the other Foreclosures.