Expert: Jessica Bryan - 5/31/2004

Question
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Followup To
Thank you for your quick response and I think that those are all viable options and I really don't they had my best interests in mind and we did not have any stratgic plan mapped out.  From information I received from my niece who is resideing in Lincoln, she has not seen it advertised for the last 3 weeks.  Since we have a contract, would that not be a violation and do you believe they should be reported to the proper authorities?  They say they had open houses those weeks, however, unless some one drives by the house, how would they know.  I have to verify this for sure, and would only bring it up if I could verify it, what would happen then?

Thank you again, I really appreciate your assistance here.  I am late in obtaining this information, which I know is poor planning, now I have to do a better, more proactive approach to avoid compounding the problems.

Sincerely,

Gretchen
Question -
It is currently listed with a Home reality agent and I felt comfortable with her, though for no other reason than my first impression.  The listing is up (3 Months) and I have to fax them information today (though, I won't if I don't get the advice before then) to relist with them, but in that time, there have been no offers.  I believe they priced it too high and I agreed only because I have a problem mortgage and was thinking I need what they want to ask to meet that and their fee.
It is a small home (725 sq feet), older, built in 1900, and near (within 3 blocks of the university and minor league ball park.  There are many single family dwellings, but also a lot of rentals, 2 of which are on either side of the property.  I have relocated to Phoenix AZ and feel in a bind.  I have heard from friends it has not been listed in the paper for at least the last 3 weeks and they are being more and more neglect in contacting me with any updates or info.

Can you advise?
Answer -
Dear Gretchen;
Since your listing is up, I would suggest that you think about listing with someone else. The home is probably priced a little too high which is the reason you have had no offers.  Talk to another real estate company and see what their thoughts are.  Perhaps you can negotiate their fee a little which might save you some money.  Advertising is expensive and sometimes companies will opt not to advertise too long if they think that it is not getting the responses that they want.  There are many reasons that your home has not sold.  Check with your agent and other agents to get an idea of what is selling and in what price range.  If your home is truly priced too high and if you need that much money to pay off fees and loans, perhaps you might consider an alternative...rent the house out to someone for a while at a high enough rental to pay your costs and then wait until you have more equity in the home to sell it. (Since there are rentals on both sides this seems to be the trend). You might also consider a lease to own situation where you offer the home to someone who doesn't have enough of a credit history to buy or who doesn't have enough down payment saved yet to buy.  These options sometimes work in a slower market. Another option is to list it differently.  Advertise it as investment property.  This will attract a different kind of buyer: one who is looking for rental properties and who wants to invest.

I know that you are eager to sell and beginning to feel pressured. The idea is to be pro-active.  Make sure that your home looks better than the competition both in appearance and in price.  If it doesn't, then you won't sell.

A new agent may be able to put his or her finger on the problem.  If not, then ask for an evaluation from the current listing company.  Ask for a report from the agent on what was the response from other agents who have seen the home.  

Good luck and best wishes.
Sincerely,
Jessica Bryan
Managing Broker
House to Home Realty Services

Answer
Dear Gretchen;
Even though they haven't advertised, unless your contract specified weekly ads, it is not a violation.  Re-read your contract carefully.  If they did specify that they would run a weekly ad, then you will have to check with the paper and make sure that the ad wasn't buried somewhere remote.  Then, it is something that you can take up with the managing broker to file a complaint.  Mostly, if someone doesn't do what they promise, then it is grounds to cancel the contract.  The only time it is something that can be dealt with by proper authorities is if there is a legal issue, or ethical issue.  Then of course you have to consult with an attorney.  You would have to discuss how and how much you have been damaged by their lack of performance.  It becomes a costly affair and probably not worth it.  It is more important for you to voice your disapproval about the agent to the Managing Broker and then see what they suggest.  Perhaps they will agree to do some extra large ads for you and some additional marketing.

Good Luck.

Sincerely,
Jessica Bryan