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selling a house...


Ravenous Wolf
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A neighbor of mine is selling his house. The neighborhood is about a year and a half old and the builder is finally building the last of the houses here. The neighbor first put a price of over 15k of what he bought it for. Natually, no one made any offers for it in months.

Now, the fliers on his "For Sale" sign does not have a price. When you call in to the agent, the agent says that they will not disclose the selling price until AFTER a walk through of the house has been done.

Is this guy nuts or is that the new trend in selling houses???

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Usually they reserve that tactic for multi-million dollar "by appointment only, please" homes. They must have something extraordinary in the house for them to go that route. :roll:

Sounds like they're using the "just get them in the door" sales trick. The realtor will be sure to bring attention to the little details and then blow them out of proportion. Before you know it a 2 sq. ft. closet really is clever.

caveat emptor

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How much more is the builder charging for new homes than they were for the same model one and a half years ago.

Kind of looking at that number, as well as what your neighbor bought his home for and add the realtor commiission and then try to make a little bit of profit. That could signal a very difficult situation to sell a home.

I was in a similar situation about thirteen years ago. My immediate neighborhood had already sold out, but there were so many homes that could be built brand new (to the new homebuyers specifications) that it made mine a difficuilt sell. I wanted a decent (fair) price, but I was also competing with the new construction.

What finally sold the home was the fact that I had an assumable mortgage that was more than two percent lower than the going interest rate on new construction. After switching the emphasis to the assumable interest rate, the home sold within three weeks (at full list price). Of course it did take a fifteen percent down payment, to assume the mortgage, but it was about the only advantage versus new construction. Well, other than established landscaping and a few other things.

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  • 1 month later...

It has now been about two months since my neighbor has been using this tactic and it hasn't worked at all.

And there are so many people that pull over and take a flier from his FOR SALE sign.

Sometimes like if I spend half the day working on my front yard on a Saturday, about a dozen people will pull over. And lots during the week too.

So "hiding" the sale price doesn't work. Unless it is a multi-million dollar mansion...

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Also, if someone tries to get "Way too much" for their home, unless the buyer has a lot of money, the financing won't go through. Value is in a major way determined by what other homes that are like that one, in the area are selling for. Yes, there are areas like CA, where homes go up in value so fast that comps are hard to find, but generally, anything over a 3-4% increase in value per year is hard for an appraiser to justify.

Charles

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  • 2 weeks later...

Hi Ravenous,

It's been a while since I've posted on this board, but since this is related to my profession I thought I'd comment.

First, your neighbor is in THE toughest selling position possible. Not only has he probably not lived in the home long enough to have built up much, if any, equity, but his home is also competing with the brand new construction still going up in the neighborhood. It's hard for buyers to justify paying the same or higher price for a resale home in the same neighborhood where they can just walk in the sales center and choose their paint, flooring, cabinets, countertops, lighting, etc. and have a brand spanking new home instead.

As for leaving the price off the flier, this is done so buyers will have a reason to call the real estate agent.

I think Doc is right about the "just get them in the door" trick, though. Who wants to spend time looking at a house they aren't even sure they can afford? I would think that tactic would scare off 99% of the people who call. In answer to your question, this is definitely NOT the new trend in selling houses. I think the agent is misguided (or just plain nuts).

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