How long on the market before a price drop?

[Anonymous]

My sister and her husband have their house on the market. She asked my opinion on price, I gave it to her, and then she priced it $50k above what I thought was a competitive price for her neighborhood. Her realtor agreed with me, but my sister and her husband wouldn't listen. The house has now been on the market for 2.5 weeks with lots of showings, but no offers. I think she should lower the price, but she says it's too soon. What do you all think? If there have been a lot of showings, but no offers, how long would you wait before dropping the price?

[Anonymous]

Stay out of it!

[Anonymous]

I don't know where this is but in MoCo houses priced correctly are moving within a week

[Anonymous]

Anonymous wrote:Stay out of it!

God, I wish I could. She calls me 5 times a day to bitch about it, ask my advice, and then ignore it.

[Anonymous]

if she is going to ignore your advice why bother?

But common sense dictates that after a lots of showings and no offers, she might want to listen to her Realtor's advice on the price. You can always point out the comps and the houses that are selling

[Anonymous]

If it is not selling and in a desirable location she should adjust the price quickly. Between low interest rates an low inventory it really is a seller's market so it I priced incorrectly. However, having said that waiting a month seems like more standard practice in the area.

[Anonymous]

If her house in under $1m, meaning it can do a conforming loan not jumbo or super jumbo, someone should be communicating their interest to the listing agent.
Oddly, people in the DC area don't lob in offers (we did tho) at what they think is fair value. They'd rather sit and sit and see if there is a price reduction.
In your sister's case, unless they are desperate or really need to sell asap, she should just leave the price for 1 month or 2, and actively reach out to those who scheduled a viewing or a 2nd viewing.

Really a toss up if leaveprice for 2-3 months or cut price. it's not like the buyers are going to buy much else and go away! no inventory!

[Anonymous]

There bidding wars in 1 week or less on places in NoVA and DC.

If it's been 2 weeks and no offers and the place is well under $1m, then it's priced too high if it's in VA or DC.

[Anonymous]

I think it really depends on the list price. I live in a neighborhood that sells quickly. A recent listing didn't sell in 2 weeks and then the price dropped from $1 million to $900k and it sold. Depends on location and original list price. This house I'm referring to has already been torn down.

[Anonymous]

There is a phenomenon I read about that seems to apply here. When a house is overpriced, sometimes it generates TONS of showings by real estate agents. They're seeking to show their buyers, hey, this 3BR/2BA Cape Cod in ____ is $600k. Then, they show a 3BR/2BA Cape Cod in the same area, for $50k less, and the buyers bite because that one looks like such a great deal.

There was am article about this recently maybe Washington Post???

My own sister is stubborn as can be, and wouldn't listen to me if we were in the same position you are with your sister. Sometimes people just have to take their own action, learn their own lesson, do their own thing.

[Anonymous]

Just tell her that the longer she waits to drop the price the more money she will loose, buyers will use it as a reason to make a low offer, because they know there isn't competition. Sellers do not decide the price their home sells for, the market does.

[Anonymous]

Depends on the size and price range. 600-800k house sell fast all the time, costlier houses take longer and are more likely to have buyers in the spring. Much more velocity at the sum $1 million property size. Easier financing options too.

[Anonymous]

I think people are getting pretty savvy about comparing houses to the comps and realizing when something is overpriced. And sellers are emotionally attached to the house so they are less likely to realize when their own house is overpriced. (they're also hoping to get the extra money.)

I think people hesitate to look at houses that are too far outside of their price range, because it makes them want to spend more than they can afford. So they're setting their sights lower and the house is not coming up on their searches. I tried not to look at houses much above my absolute max purchase price because it was too depressing to see what I almost but couldn't quite buy. (there is an enormous difference in arlington between $550K and $650K, for example.) I got my house for $90K below original list price, but didn't see it until it dropped to $25K above my ceiling.

[Anonymous]

2.5 weeks is too soon, generally speaking. That said, if she doesnt get an offer in the next 2 weeks, she needs to drop it $50K - assuming her house is above $500K. Anything less than $50K drop is kindergarten and buyers won't budge.