Countless Showings & Open Houses—No Offers....Help!

Dave,

Our house has been on the market for what seems like quite a while! We would really like to sell it as soon as possible because the whole process is beginning to wear us out! We’ve had countless showings and even a few open houses. Why we don’t have any offers is a mystery to us. The house is in good condition and we think we are in a great location. Have you had houses in the past that just don’t seem to sell? Do you have any ideas on why we aren’t getting any offers? What can we do differently to ensure our home gets sold in the near future?

Judy and Bob, Grand Junction

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Judy and Bob,

Fear not, you are not alone!  Yes, I have had houses that just would not sell and believe me, there is no magic bullet or secret sauce to end the frustration of the house that is a chronic non-seller! There are times when, even if you reduce the price to a below market value buyers still find them unsavory and not offer worthy. I have heard it said in the medical field that the disease with no diagnosis and no known cure is always the hardest one to treat! The same is true in real estate, but ultimately in real estate there is always an answer! Keep the faith, because unless you have one of the chosen few that just stubbornly refuse to sell, I am going to be able to give you some idea of where to look and adjust to get your desired result.

I tell people all the time, I am not the sharpest knife in the drawer and I am living proof you don’t have to be a rocket scientist to be successful at selling homes. The process, when boiled down to the basics, is really quite simple regardless of how complicated people choose to make it. You want to be on target with the three things you can control, Price, Condition and Marketing. It sounds like your agent is doing their job effectively from a marketing perspective. You have had many showings and they have even held open houses to help generate traffic and attract buyers to your home, yet no offers. It also sounds like the condition is good. If you have not received feedback that indicates that you need to make some changes to the condition in order to entice buyers, then it is likely that you are in good. Now what we have left is price. Price is always the most difficult subject to tackle for any agent or any seller!

“Where price is concerned there are a couple ways to attack it. You will either be willing to listen to the market and adjust the price accordingly or you will choose to set it and forget it and wait till you find the right butt for the saddle. ”

Where price is concerned there are a couple ways to attack it. You will either be willing to listen to the market and adjust the price accordingly or you will choose to set it and forget it and wait till you find the right butt for the saddle. There are cases that can be made for both approaches. First, statistically speaking, you should have had an offer within 12 showings (on average) all else being equal. If “countless” showings means in excess of 12 then you really need to start considering a reconsideration of your pricing strategy. If you are nearing or over 18 showings it is likely time for action. I have heard sellers say this countless times, “All the feedback indicates that the price is ok, nobody is objecting to our price so it must be something else. If the buyer is interested they will surely make an offer.” I can tell you, this is faulty (but VERY common) logic. No offers and no or few second showings means they are objecting to your price by purchasing something they perceive is a better value at a similar price. Believe me, if a buyer smells value they will pounce! The “real” feedback you need to listen to is the lack of offers…sometimes that silence provides truth. If you decide to wait long enough one of two things will happen, the market will catch you (assuming the market is going up) or you will find the perfect butt for your seat! I have seen both methods be successful, one just typically takes a lot longer than the other and is ultimately more frustrating.

To move the process along at a faster pace, be willing to adjust your price until you get the desired result. The good news is you have had a lot of showings so you probably are not way off, probably a 3-5% adjustment will do the trick! Talk to your agent and get their input, but my guess is you are closer than it feels! Hang in there and best of luck. I hope this helps.

Dave Kimbrough
The Kimbrough Team

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What does a price reduction mean from a home buyer's perspective?

Dear Dave,

We are actively shopping for a home. We have been looking for about 3 months now and just haven't found the right place for us. As we keep looking, we have noticed the price drop on a couple of the houses that we have looked at. What do you think it means if a house drops $10,000 in price? Would now be the time to go in and make an even lower offer on the house? Is it worth it to settle on a house that might not be exactly what we want, if we can get it for a really good deal?

There sure is a lot to consider when deciding to buy a house! Thanks for any feedback you could give us.

Jack and Stephanie, Grand Junction, CO

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Jack and Stephanie,

Shopping for a home can be painstaking sometimes and requires the patience of Job to find just the right home. It is great that you can afford to be patient and have the time to really look, however, sometimes you can start to overthink things and get caught up in a vicious cycle of “It’s just not quite right." Be careful not to get so caught up in finding the “perfect” house that you miss out on the “perfect” home! There is a significant difference between a house and a home.

Searching for any home is a process of give and take and I would say that there is never a “perfect” house, but there are “perfect” homes!! There will be sacrifices and knowing that everything will not be perfect from a house perspective might help open up some avenues to finding your perfect home. In some price ranges, mainly over $400,000 in our market, you can see price reductions as there is a bit more inventory in those upper price points. In the price ranges under $400,000, our market is still moving quite brisk. 

“Many times buyers interpret that a price reduction means a seller is desperate or there is a problem with the house. That is sometimes true, but typically it simply means that the seller is listening to what the market is saying.”

Many times buyers interpret that a price reduction means a seller is desperate or there is a problem with the house. That is sometimes true, but typically it simply means that the seller is listening to what the market is saying. I say it all the time, selling real estate is not rocket science! If a home is for sale and it is getting showings and no offers, the price is likely too high. If a home is for sale and is getting no showings either the marketing is bad or the price is too high. I will not get into all the reasons the price may be too high, as there are too many to list, but it is safe to say that if a house is a good deal there will always be someone there to buy it. Almost regardless of the market conditions. Price reductions are generally a sign that a seller is listening to what the market is saying, nothing more.

After a price reduction is a great time to make an offer, as generally price reductions open the door to a new pool of buyers and generate increased activity. Ultimately, when priced right, conditioned right and marketed right, any house will sell and being the first to make the offer increases your chances of getting it. After a price reduction, you may be met with some seller reluctance to reduce even further, however, if you don’t try you won’t know. Make the offer and see what happens. The worse that can happen is they say no. 

Your last question is a good one, should you settle if the deal is good enough? I always say that the house does not make the family, the family makes the house a home! If this is true then it does not matter in what or where you live. I am aware this is being overly simplistic so before you settle you have to ask yourself, “Can we truly be happy and at peace in this home?” If the answer is yes, then go for the good deal and you won’t look back. If the answer is no or I am not sure, then no deal is good enough or worth the risk! There is a lot to consider and it sounds like you are asking all the right questions. I bet you find the “right” home soon! 

Dave Kimbrough
The Kimbrough Team

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We've lowered our home's list price, but it still won't sell. What now?

Dave,

We placed our home up for sale almost 3 weeks ago. Our Realtor started out $10,000 higher than what we had suggested and what the community comps had shown. We have had 8 showings and one open house, of which she said had been one of the best she had had in a long time. After much discussion and listening to reviews, we lowered the price and even added a $2,000 concession for counters. Ours have not been updated and we wanted them to be able to pick. That was after it had been on the market for two weeks. Our Realtor has brought no one in to see the house and we are just really frustrated as to how we can help ourselves.

Debra, Grand Junction

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Debra,

I understand your angst, but you must realize that pricing can be more difficult than one would think. It’s not always hard, but sometimes the right price can prove to be quite elusive! This is the classic “damned if you do, damned if you don’t” pricing scenario and I can totally relate with your agent. It’s our job to get you (our sellers) as high a price as we possibly can and still remain within the limits of the market. We each do our best to read the tea leaves and come up with a price that will sell quickly (I generally try to anticipate no more than 60 days on market), but also maximize your money! Keep in mind that our real estate market is, depending on the price point, moving rapidly and prices are climbing!

The scenario you have laid out is actually quite common. Your Realtor starting out $10k above some of your community comps may very well be understandable and actually responsible depending on your price range and how old the community comps used were. Let’s say your home comps out at $250,000. Let’s also assume that price range is appreciating 10% each year (this is very realistic, if not a bit conservative, given our current trend) then your home is gaining nearly $2,100 each month in value. If the comps were 3 months old and you calculate a market time on your home of 60 days, then you have 5 months or $8500 in added value...which now makes a list price of nearly $260,000 quite reasonable given the time of year and the activity in the market. And let’s be honest, as agents we run into very few sellers who are not interested in maximizing the price on their home when selling and we are clearly in a sellers’ market. Let me point out the “damned if you do, damned if you don’t” aspect of pricing. Had you put your home on the market and received 7 offers the first day (and this has also happened to me) you would likely be writing in (or at least thinking it) about pricing the home too low and leaving money on the table. No agent likes to be the one that gets 7 offers the first day and no agent likes to have only 3 showings in the first 2 weeks. It’s a fine line that we walk! 

“From what you are describing you and your agent are working together to be proactive and stay ahead of the curve on this one. You are counting your showings, listening to your feedback and reacting promptly and decisively and that is what matters at this point. ”

From what you are describing you and your agent are working together to be proactive and stay ahead of the curve on this one. You are counting your showings, listening to your feedback and reacting promptly and decisively and that is what matters at this point. Your agent has already done an open house and that shows she is willing to work to get your home sold. Remember open houses are great at generating traffic, but not great at generating contracts. Also, try not to hold it against her that she has not brought anyone to see the home, you hired her to generate traffic (regardless of who shows it) and 8 showings in 3 weeks is not great, but not horrible traffic. Sometimes my team will show one of our houses 4 out of 10 times and sometimes 0 out of 10, it's just how the numbers work out sometimes. You are on the right path!

Try to focus on what is in front of you, not what is in the rearview mirror. What has happened over the past 3 weeks is in the past, let it stay there. You have made proactive steps to get your price more in step with the market and offered a good incentive to entice potential buyers. Everyone assumes that if it does not go under contract in 3 days that something is wrong. Sometimes it just takes a little time to find the perfect butt for the saddle and a little patience, a couple deep breaths, and a good night sleep make things look better. Average days on market this year is right about 90 days! That’s average from list to close...21 days is still early in the game. Hang in there! I bet an offer is just around the corner. Remember, your outlook can change in just one showing! Best of luck.

Dave Kimbrough
The Kimbrough Team

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We've had 20 showings, but no offers. Should we hire a new agent?

Dave,

We have had our home for sale for nearly six months with no offers and approximately 20 showings. Our current contract with our real estate agent expires in a couple weeks and we are considering changing agents and going with a new agent and company, although we have enjoyed working with our current agent. We are currently weighing the pros and cons of making a change and are looking for some outside insight to help us make the right decision. Thanks for your help.

— Josh and Brenda, Grand Junction

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Josh and Brenda,

Many times this is a very hard decision to make, especially if you like your current agent. Let me be the first to say, there are times a new agent, new sign and new energy are needed, regardless of how much you may like your current agent and want to stay with him/her.

If you have been on the market for nearly six months, several during winter, and had 20 showings, I would say that your traffic has been pretty good (although that does depend on your price range). It does not sound to me that you can blame your agent for lack of traffic. If you have good traffic, but no offers, it does not directly mean you need a change of agent.

Listen, you hire a real estate agent to drive traffic to your home in the form of showings and it appears he/she has done a good job. Statistically speaking you should get an offer within 12 showings (this is just a guideline I use and a national statistic) and I have found over the years that it really is a pretty good measuring stick as to where my properties stack up in the market. I have found it to be a very good predictor of home pricing vs. the market and if we have had 12+ showings and no offer, it generally means it is time to start considering a price adjustment.

“The good news is, you are getting showings, which means your agent must be doing a good job of marketing your home and that you are not likely very far off.”

The good news is, you are getting showings, which means your agent must be doing a good job of marketing your home and that you are not likely very far off. You can most likely resolve the issue with a moderate price adjustment and scare up an offer fairly soon. If you were not getting showings, this would indicate that the price is probably considerably above market tolerances and will require at least one price reduction of significance.

I will say, there are times a listing just needs new energy and it really can make a difference by changing the agent and or company and pumping some new energy into the property and marketing of your home. It has happened to every agent — the listing that will not sell and you have no idea why — no matter how hard you try, no matter how hard you pray, no matter how hard you beg all the agents who have shown it, sometimes you have one that just will not sell. You will know when your agent has given up, you will not see any advertising, you never hear from them or their staff, your flier box will stay empty etc. You will know at a gut level if you need a change. But if you still enjoy working with them and feel they are doing a good job, stick with them and let them stay on the hunt for a buyer...as long as they are earning it!

Considering you are getting good traffic and you have enjoyed working with your agent, I would suggest you stick with them. I would also suggest you have an open and honest conversation about where you go from here and what the game plan is going to be moving forward to get your home sold. Remember, showings are what you hire your agent to produce! Showings lead to offers and unless there is a pricing or condition issue you should have probably received an offer by now. Best of luck — sounds like you have a good agent doing a good job

Dave Kimbrough
The Kimbrough Team - REMAX 4000 Inc.

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Value of New Construction vs. Older Homes

Dave,

My wife and I are moving this spring. She likes the charm of older homes, but I tend to like new construction homes. We’ve talked a lot about the pros and cons of each but when it comes down to it, we’ve decided that value is the “make it or break it” for us. From a value perspective is an older home as good as a new home?

Thank you!

Betty & Steve, Grand Junction

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Betty & Steve,

Value, like beauty, is in the eye of the beholder and very subjective to “what” value means to you. What you value, another may not, and thus the reason true value is a very individual determination and really must be done on a case by case basis. Keep in mind that “value” to some people is measured in happiness, peace, comfort, or a myriad of other things and may only be minimally impacted by monetary considerations! For others, monetary value is the “bottom line”. How much will the value go up on one house vs. the other? For the purposes of this article we will simply look at the monetary perspective, as that is typically the main goal when people are seeking information about “value”.

I would say, in my experience, appreciation will be greater on newer homes than it will on ones that are older. This is of course a broad generalization and not an “absolute truth”. For example, if you have two homes in the same neighborhood and one is 4 years old and one is 15 years old, the newer home will gain value at a comparatively accelerated pace. This does not mean that the older home is not a good home, it simply means that the newer home is most likely more in tune with current buyer wants, finishes, and floor plans because it is only 4 years old. The house that is 4 years old most likely has oil rubbed bronze or brushed nickel finishes and the older one may have polished brass fixtures…it is simply not as up-to-date and thus will not gain value at the same pace. On the flip side, while we are on the topic of value, your best value in the long run can also be the older home!

If you can purchase the home that is 15 years old for a good price, change out some of the dated features and finishes and bring it up to a more current look and appeal then your best “value” may be the older home that just needs some cosmetic updating. Let’s add one more twist, the older home has an incredible view and the newer one does not. Which one will do better given that change in scenario? I would say, all things being equal and age being the only major difference, the home with the view will outperform the newer home! Homes with unique features or benefits tend to have exaggerated value gains. As you can see, there are so many things that go into measuring value that it gets very difficult to determine which houses will perform best over time from an appreciation perspective.

“You have to evaluate each one on a case by case basis and by using all the factors involved to make the best decision possible at that point in time.”

You have to evaluate each one on a case by case basis and by using all the factors involved to make the best decision possible at that point in time. Go with the one you love and the one that you will most enjoy living in and don’t focus only on monetary value, but lifestyle, peace and happiness value! Focus on your house being your home and don’t worry about what you can’t control, like the future of the real estate market! Live happier, live longer! Now that’s what I would call “real” value. Hope this helped a little! Best of luck.

Dave Kimbrough
The Kimbrough Team

If our home sold in the first week, does that mean that it was under priced?

Dave,

We listed our home for sale about 3 weeks ago and it sold in the first week for what we were asking.  I was elated, but my husband keeps saying “we sold it too cheap.”  I keep telling him it was just the right buyer, but he says it was under priced. If our home sold in the first week, does that mean that it was under priced? Just curious of how you view this, as I am sure you have run across this very situation.  

Jackie, Grand Junction

p.s. I am happy we sold it quickly, even if we could have gotten a little more.

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Jackie,

I have run across this many times over the years and this is one of the real estate questions that is almost always debatable. There is no doubt that every time we sell something quickly that I ask myself the question, “did we price it too cheap?” I am here to tell you that sometimes the answer is yes, sometimes the answer is no and sometimes the answer is impossible to know. I can absolutely tell you that just because it sold quickly, does NOT necessarily mean that you sold it too cheap.  

There are times that we have sold a property within the first few days with multiple offers and in that case the answer would be, more than likely, yes. If something sells that quickly, with multiple offers then you probably could have gotten more money for it, because there are multiple people vying for the same product. The good news is that most of the time in multiple offer situations, we are able to get more than asking price. It usually works out to be about the same as it would have brought if priced higher originally. I really do believe that most of the time you are correct, it is the right buyer and not because it was under priced.   

 I don’t think a day goes by that I don’t tell one of my customers, “there’s a butt for every saddle, we just have to find the right butt!” A little talked about fact, which I might point out is underappreciated, is that there is always a school of buyers in the market and they are circling, just like fish in a pond. When new bait is thrown in, they all swim over to check it out and either take it or wait for something better. In our current market there are more buyers than one would think. They are circling and waiting for just the right bait. When they see it they will strike, but only if the price is right. Today’s buyers are not dumb, anything but. They are very smart and well educated on the market. When a property of interest comes up but is not priced appropriately, it will sit.   

I say it all the time, houses are like any other good to be sold. At a certain price all homes will sell and sell quickly, but the tricky part is establishing the market value for each one when no two are the same. That makes establishing a top of market value much more difficult than one might think. It is much easier to establish a market value for a particular item when there are thousands to be sold and they are all identical. In that case it is simply the law of supply and demand, but when EVERY item is different with its own characteristics, good and bad, it becomes much more difficult. Even the same house in the same neighborhood has a different lot, view, finishes, condition etc... As you can see every house is different. 

Honestly, sometimes I get it just right, sometimes I set the price too high and sometimes too low, but every time it is based on comparable sales in the area and my professional assessment of the unique values the property offers and I am sure your agent did the same. It really is as much art as it is science and you do not get them all right. If your home had not sold in the first week and been 60 days and no offer, your husband would have said it was priced too high. It's really a no win debate. My best advice would be to be thankful it is sold, remind him that he agreed to the sales price and be thankful you can avoid the countless showings and constant cleaning! The bottom line is, it is sold and that is a good thing.  

Dave Kimbrough
The Kimbrough Team