What should my real estate agent be doing to sell my home in this slow market?

Question

My home has been on the market in Northern California for almost 3 months without an offer. I've reduced the price twice, and now it's about 10% below the initial asking price, and about 15% below the peak market value a year ago. It seems that all that my agent does is hold an open house every weekend. I'm concerned that open houses do not always attract genuine prospects, and may be he should be doing more to market the house in this slow market. What should I tell him to do, or shoud I fire him and get another agent?

Answer 1

Look at redbuggy answer of re-listing the house. sound like an honest thing to do, re-list and give the false impression that it a new deal. What other games are played with the MLS?? maybe listing the house once you have a buyer so you can brag that you sold a house in one day?? It is these and other games that have been played with buyers and the MLS that made the bubble.

http://www.breakingbubble.com/index.htm

You need to find out what you can afford to walk away with out a lost, and bee happy because if you hold out you own and loss everything, sorry to say but if you look at your house as an investment there is no rule that you will make a profit.

Answer 2

Relist the house as a new listing. When houses sit on the market for a long time, esp priced below market value, people assume something is wrong with it. If your agent puts it in as a new listing it won't show that it has been sitting for so long which can help get some new people in there.
A lot of people that attend open houses are not serious buyers...more like nosey neighbors.
Make sure they are advertising it in local papers and pennysavers. Maybe offer a bonus to the selling agent if they close within a certain amount of time.

If you are not comfortable with him and don't think he is doing everything you can then wait for your contract to be up and list with someone else. But don't automatically assume your agent is the problem. Take a look at houses that are selling in your market, what do they have that your's doesn't? Make sure your house shows well. Small updates can make a huge difference. Take out furniture to make the house appear bigger. Make sure it is always spotless and smelling good. Your agent should be contacting the other agents that have shown it for feedback, that is very useful to determine why it is not selling. Mabye its something you can do to fix the problem.

Answer 3

Last year the market was really at a very high peak and many people overpaid for houses. That is probably what you are seeing and you should look at what homes have sold for during the past 6 months and price your home in that range. Also, look at how many homes are on the market now and see if you are the best deal out there. There is not much you can do. If you overpriced your home from the begining then many buyers were not turned on initially from the price and most likely will not return.
I live in NY and if there is a bargain and the owner is willing to really negotiate it will be off the market within a few weeks if the price is right and if the price is too high then it sits on the market for months or even up to a year. As far as holding open houses, showing your homes to other realtors, listing your property on the internet, signage on your property and in real estate books there is no much else he/she can do. If your house shows well and is the best deal in town then it will sell.

Answer 4

I think that you should sit down and talk with your Realtor. To have a good relationship with your agent you must have an open relationship. You guys need to communicate to each other what he/she has been doing and what you think they should be doing. The market can go up and down in the matter of months. You should ask you agent how they are marketing your property. Or ask them if they can give you a weekly update on the activity of your home.

I suggest mentioning what is called a Broker open house. Where your home is open to all the real estate brokers and agents in your area. There is a really good chance that your agent Will not be the one who brings in the buyer for your house. The more other agents know about your home the more informative they can be to possible buyers that they are currently working with.

I think you should also look into a think called Staging. You can find sites when you search it. You can do it yourself or hire out a company who Will come and use your same furniture and stage it in different ways to help buyers see the real potential of your home.

Firing your agent should be the last thing on your mind. I am not so familiar with CA real estate but in CT if you were to fire your agent, there may be legal problems in the end.

Answer 5

What is the average selling time for home in your area? Your agent will have that answer. If you are beyond the average, there are several concerns here.

Your agent is holding Open Houses every weekend? Open Houses do NOT sell houses, they generate buyers for other home sales. In 35 years of selling real estate I sold ONE house through an open house. The odds are against you. Alot of work for you.

Questions you need answers to: Did you agent do a Market Analysis on the home? In writing? Have you considered getting an appraisal on the home from a licensed appraiser? Are there things that are detracting buyers when they come to your home, like clutter, people and pets? Does it need repairs? How does it line up with other homes close by?

If you have researched these questions and they don't apply, you need to change agents.
I live in Michigan and homes are on the market for 3 years in my area. I wish you luck on your sale.

Answer 6

I suggest finding an agent that does both mortgage and real estate. I suggest this because this provides the agent with 2 sources of profit to use as borrower benefits (closing costs, no cost loans etc) which would easily separate him/her from the majority of agents. Both tasks require a skilled person so it is rare to find an agent willing to be responsible for both but to have the same 1 person handling the task is very efficient in addition to cost effective. If combined with a couple of points from the seller as non recurring coverage the agent can use the additional funds from the loan to buy down the borrower interest rate. This wins a lot of deals in a tight market like this.

I wrote a blog (and have more coming in the immediate future) on market trends for housing and credit management as it pertains to mortgage qualifying. I suggest bookmarking it and checking in regularly. It will be worth your while.

Answer 7

Sales & MARKETING!!!

How many flyers have you sent out? How many people in your network have been asked for help? How many websites have you listed at? How many email campaigns have you started?

If you can't sell, pull money out with a nice fixed rate loan and invest it in preferred stock or something to get a higher interest rate. Or, improve the house with fixtures, paint and carpet.

Maybe you can condo convert, rent it out, rent to own, lease it, least the parking space... I have plenty of ideas...