Expert: Karyn Foley - 5/31/2007

Question
Hi,

My husband and I made the initial mistakes of 1.listing with a 3% realtor, who did nothing  2. Significantly overpricing our house.

We are now with a new realtor, and our home has had showings, but no offers.  We found out that Prudential, the real estate that we listed with, was not aggressively advertising our property the way they said they were in their brochure.  They advertised in many online sites, and the MLS, but not in local newspapers.  The only place the realtor told me she was regularly advertising, was Homes and Living magazine.  We contacted the owner, and they are supposed to step up the advertising, but the agent told me she "called too late" to advertise in another paper she promised to advertise in.

They now want us to reduce the price of our property again.  I'm not sure what to do, because the lack of exposure may have contributed to no showings.  I asked for area comps, and there are none like our house - unique.  Should we reduce again or ask for a release and switch realtors?  I was recommended a supposedly 'top' realtor in anothre company. Would this work against me? The realtor we have now said that "if you switch around, realtors know it" - indicating that we might antagonize realtors so they won't show our home.  *We have also added a $1500 realtor bonus to a realtor who brings in a buyer.  Is this a good idea? Should we court the realtor or the buyer, by lowering the price?

Also, since we initially overpriced our house, I read that people then think there's "something wrong with it".  How can I overcome that stigma?

Answer
Gee, Sharon, don't you realize that you had contacted me before, and you are going against my suggestion that you stick with one agent for a period of time and yet here you go, trying to get more input from more people which will only confuse you.  You are doing the same thing with other agents, why ask them when they will give you a self serving answer trying to steal the listing rather than sell it?  A bonus like you are offering is too little to be significant.  That $1500 has to be share with the buyer's agent and their office.  If you want to make it significant, offer 4% to the office that sells your property!!!  Or, better still, offer the bonus to the buyer who makes the decision as I had recommended in my last email to you.  The bonus should be in the form of either paying the buyer's closing costs, or paying one point towards the buyer's loan, allowing a lower interest rate and thus a lower monthly payment for the buyer on the buyer's loan.  You are too emotional and too needy to be in control of this important period of time.  Get a grip and take ahold of yourself.  The other agents must now recognize your anxiety and they are probably taking advantage of it.  You are leaving yourself wide open to low ball offers.  Prudential is a good, qualified company.  If the home is in a good area, is correctly price, it will sell.  If you,instead of your agent, is allowing it to be higher than the comparable homes that have sold in the past ninety days then you are to blame for the lack of offers.  At least you are getting showings.  The last time you contacted me you were not getting showings up to expectations  You can overcome any stigma that has already been created by being calm, in control, priced better than your competition,and not being available to discuss your problems with everybody and anybody other than the person you picked at Prudential to represent you.  Also, why are you writing that there are no comps like your house?  There were other modular homes where you live according to what you told me before.  If your home is so unique in the neighborhood because of the work you have done, the kiss of death could be that you are overpriced for the neighborhood.  The appraiser for your buyer's lender will compare it with houses that have recently sold in your particular area.  If there are no homes that have sold in your area, then and only then will the appraiser need to look around elsewhere close to you.  Additional square footage can only be counted to your advantage if it has been done to code and already has a permit on the improvements.  Improvements and square footage not permitted are of little or no value.  A generous appraiser may bump it up a little, but certainly not significantly.  Over-improved homes are difficult to sell and difficult to appraise.  Stop thinking that what you have done is as important to the new buyer as it was to you.  I always tell some one who is making additions to do it only with the thought that it is for themselves only, and may be too unique to appeal to the general population of buyers.  To go along with the "it only takes one buyer" theory is dangerous.  It make take just that one, but are you willing to wait until that one buyer comes along when it could be a long, long wait?  It is paramount that you attempt to appeal to 99% of the buyers; that way, you stand a better opportunity of finding a buyer in a much quicker period of time.  Stop searching for answers!  You ask one hundred people, you will get one hundred different opinions.  Settle down and save your strength for when you get an offer.  You are allowing yourself to be a victim of the market, rather than a participant with something to offer.  Karyn Foley