Reduced to 579 and then pulled off market. Met with our agent to sum up what happened. We were pretty satisfied with her feedback , although it felt a little late. Mind you 70 showings and maybe 12 feedbacks in the three months. She said since we were listed at 3 bedrooms but it is truly 2 bedrooms with a flex room that killed us most of the time. Which would be the reason we had people trying to secure funding at every price point that no matter what price we were at the same feedback came back.
I asked then why did so many showings go to the lending phase but fall through. To me I believe she was under informed on how to explain flood insurance .Flood max coverage is 250k no matter the sale price so that was 2k annual for our home . Legally a mortgage company can not require more coverage. We have a certified letter from fema stating zero floods ever , which would be enough evidence to support low coverage. . FEMA only covers 250k you can shop private and get higher coverage but completely unnecessary. If you didnt know better and attempted coverage for lets say $600k then that's $9k. I did all the leg work to attempt to explain how flood works. Anyway she said they went to lender asking for construction loans to add another bedroom and couldn't get I could be half wrong and I do believe the bedrooms to be a real issue. She said rhe flood insurance did not come up alot.
She explained that when we consulted her to go to 579k and she agreed -she felt that we were giving our house away( that advice then would have been helpful ) . She recommended adding bedrooms to our downstairs and relist in spring at a different price. She still preferred to not disclose at least the taxes. So we end our meeting with alot to think about . A few hours later my husband takes the garbage out and this family pulled into our driveway and said to my husband that they had been trying for awhile to see our home via messaging our realtor and she never got back to them . Which seems weird to us. Cant tell if we in great hands or this is a strange set up?
60 showings ( 72 total) 72 families open house, 100k price drop zero offers weird update and still confused..
byu/Affectionate_Ear7149 inRealEstate
Posted by Affectionate_Ear7149
35 Comments
It’s a two bedroom. That’s the issue. Lenders don’t lend for two bedrooms that are listed at 3. The appraisal wouldn’t have covered the loan amount.
It sounds like you already know. You are telling us how you are questioning her work, but are asking for reassurance that she is doing what she should.
I’ll say the questions you are asking you should ask your realtor, and if you don’t trust them enough to ask these questions, you don’t have the right realtor.
My realtor makes themselves available whenever I have questions and gives me thorough answers, and if I don’t understand I tell them.
The point I’m making, is find the realtor that fits what you are looking for.
That’s a massive red flag about the family trying to reach your agent and never hearing back. Like if someone’s actively interested in your house and your agent is ghosting them, that’s either incompetence or she’s got some weird agenda going on
The whole “I thought you were giving it away at 579k” comment after she agreed to that price is pretty sus too. Sounds like she wasn’t really fighting for you during the process
Your asking price is too high. The pictures suggest it may be worth your asking price, but the buyers realize it is over priced after seeing it live and in person.
A two bedroom at almost $600k? Yeah that’s a problem.
It’s always the price.
I’m not sure if the flood insurance/lender issue is really your problem. Usually insurance/lending issues only pop up after a signed offer is in place and they are doing their due diligence. In 3 months you would have time for maybe 2 of these situations. So, the other 68+ would have backed out for other reasons.
I think your issue is that you listed it as a 3 bedroom when it’s really a 2 bedroom. That probably turned a lot of people off. Be upfront with your listing. Say 2 bedroom with an option to convert a room into a bedroom.
70 showings and no offer always means price.
The lending portion wouldn’t come into play until you have an accepted offer. This is where I am confused. Have you been under contract?
How easy would it be to turn the flex room into a bedroom? Does it not have an egress window? Does it not have a closet, is it too small? Depending on the issue, it may not cost that much to make it into a bedroom and move you up to three bedrooms.
Have you considered a 150k price drop? That’s the next step if you already did 100k. 2 bedrooms, you are overpriced.
What makes it a flex room and not a bedroom? I’m assuming you can’t cheaply convert it to a bedroom or you would’ve already done that, but what would it take to make it a real bedroom?
People immediately figure out when a seller is being untruthful about anything as obvious as bedroom count. And you’re hiding the property taxes?
Once a buyer thinks a seller isn’t being upfront then they reject the property, because they don’t know what else the seller is hiding. (I’m using polite language.)
FWIW, feedback is unusual. In many areas, brokerages and associations advise agents not to give feedback. Besides, you have all the feedback you need. 70 showings and no great offers is feedback.
My theory is don’t get people‘s hopes up on something and set them up to be disappointed after they see the house. Instead, under promise and over deliver. What I’m getting at is: don’t list as a 3 bedroom and have them get there and discover that it’s 2 bedrooms plus Flex. Instead listed as 2 bedrooms plus Flex that can be or is currently being used as a bedroom. Then when they get there and see that the flex room could potentially be a third bedroom, maybe they’ll go for it. Honestly I’m surprised that you’re even legally allowed to listed as 3 bedrooms because in the state we currently live in and the state we moved from, there are certain criteria that have to be met for it to be even listed as a bedroom. It has to have egress (a window and or a door to the outside), a closet, and you must not have to walk thru another bedroom to get to it, and it has to have access to a bathroom without walking thru another bedroom. The bathroom does not have to be adjacent to the bedroom, it’s OK to have to leave the bedroom and walk down the hall to go to a hall bathroom, but you cannot have to go thru another bedroom to access the bedroom or to access the bathroom. Anyway, I know this because we had a fully finished basement with a huge rec room, TV room, full kitchen, full bath, and another closed off room that we were using as a guest room since it had across-the-hall access to the bathroom and it had a nice walk-in closet. But we were not allowed to list it as a bedroom on our listing because it did not have a window or door to the outside. So we listed the house as 4 bedrooms plus an in-law suite in the basement, and people could see from the photos that the extra room in the basement was being used as a bedroom so they could use it in the same way if they wanted.
Anyway, I think you’ll be better off to list as a 2bedroom plus flex room that can be used as a bedroom. Then people know that going in and they don’t have their hopes set up on one thing and get disappointed at the showing. Or if making it into a truly 3 bedroom home is an option for you, consider that as well: how much trouble will it be, how much will it cost, and how much would it yield in return? The problem is an agent may tell you “I can get you an extra $50,000 if you make that room into a bedroom”, and then when the time comes in they can’t get any offers, then there’s nothing you can do about it. So it would depend on the cost of changing to 3 bedrooms, but I do think there are a lot more people shopping for a 3 bedroom home than shopping for a 2 bedroom home. And especially when you have acreage, most people wanting acreage are people raising children and wanting extra space for the kids and hardly anyone is going to buy a 2 bedroom house if they have kids.
And back to the realtor, if you’ve had the same realtor for 72 Showings and nothing has happened, I would interview two or three other realtors and consider making a change. The realtor should be passing feedback on to you in real time, not you finding it out way later. And whatever agent you use, tell them you want them to ask every buyers agent who shows the house for their feedback. Some will provide it and some will not, but the agent needs to be asking for it and then passing it onto you immediately.
It is still like that… seriously. I would ask my realtor to share the feedback received as written. Most agents only show homes that fit the bill for what their preapproval is.
No offer means price, it really is that simple. 72 showings is a TON of activity…
The fact that a property has 6 acres doesn’t mean much if part of that acreage goes under water when it rains… That really limits what you can put on that land, so really, how valuable is the 6 acres with the 2 bedroom house? Also, we have been inundated with news stories around flooding in the last couple of years. I think the number of people willing to buy in a flood zone is going way down. I’ll never buy near water ever again. 🤷🏻♀️
Being listed as a three-bedroom when it is actually two is basically catfishing for houses and explains the immediate rejection from every family. You need a new agent who actually understands flood insurance and answers their phone before you try to sell again in the spring. Fire her immediately because no amount of house renovations can fix an agent who is actively working against your closing date.
I don’t understand why people list 2BR as three, but it sure benefits the buyer when 95% of people who show up too see a property realize that the listing is misleading and aren’t interested at all.
We got a great deal on our house because it was advertised as a 3BR when this is only technically correct, and not functionally correct. The 3rd “bedroom” is a pass through space you have to walk through to get to the bathroom and also has the door to the backyard. It meets the states definition of a bedroom (egress, closet, and doors) but it is not useful as a bedroom, you have to walk through it multiple times a day.
It fine to call it a “bonus room” or “office” but a family of 4 or 5 is not going to see this space as meeting their needs for a second kids’ room. And it’s not even private enough to use as a guest room.
I fully believe if it had been advertised accurately it would have sold long before we arrived to see it.
Edit: and we’re also on 5 acres.
Figure out what makes a bedroom a bedroom in your town, and turn that 3rd into a bedroom
Something else is going on here – that many visitors indicates that the listing is getting attention at the published price. Not sure it’s as simple as price the way you describe it.
The 2 or 3 bedroom thing is a stretch too, you’d still get offers. A lender wouldn’t immediately flag a bedroom difference, it may come up in an appraisal, but that affects value, not necessarily overall lending. Lenders don’t usually even look at listing detail.
Something is happening between viewing and any research on comps, terms, etc.
Does it smell weird? Have weird neighbors or eyesores in the neighborhood?
Can you post or DM a link to the listing?
Ask your agent to gather more feedback, something key is missing here. They should be asking if the buyers made offers or went under contract for a different property and why they chose the other property over yours.
Have a friend view the property, someone who’ll be 100% honest with you about how it smells, shows, and any objections to living there. They might be able to help you pinpoint the issue.
Advertised as a three bedroom when it’s really a two bedroom. A room that is clearly not a bedroom with no egress and no closet. I would never claim that as a bedroom and would never allow someone to sleep in it. I’ve had a relative DIE in a house fire because they couldn’t get out.
In a flood plain, apparently.
You say you’re going to “add bedrooms”. I’m skeptical. You mean just claim some rooms are bedrooms, like this flex room? Or do construction? I’d be careful about investing more money. Rarely pays off unless you really know what you’re doing.
Just cut the price. Get it priced correctly for what it really is. Be completely honest in the listing.
Sounds like the land isn’t as valuable as you think it is. This must be showing up as a 9 or 10/10 “extreme risk” on the climate section of Redfin & Zillow.
In politics, there’s a saying: “if you’re explaining, you’re losing.” It’s like that in real estate many times too. “Well, it’s really 3 bedrooms.” “Trust me, it doesn’t flood.” More people are concerned about climate risk if they’re smart. Especially seeing what happened around Asheville, NC after the hurricane there. A place far inland that “never flooded.”
Sounds like people are interested if they go through the trouble to secure funding to make an offer.
Maybe start fresh with a new realtor and a lower price in the spring. Get professional photos. Also don’t lie about the taxes, so that’s not a last minute surprise to kill a deal.
if your listing a 2 bedroom house as a 3 bedroom house with 3 bedroom prices, that’s probably your issue.
and something your Realtor should have fixed right away.
the listing should be as a 2 bedroom’s with an separate home office. the fact that your realtor didn’t shows they may not be as qualified as you think, because a good one would have before you even listed it the first time with them, said Nope we cannot list it as a 3 bedroom, when its only a 2 bedroom.
that combined with your realtor not looking at/responding/getting msgs (what platform was used for those msgs?) is a sign they might not be on top of things.
check for comparable & SqFt & 2 Bedroom homes that have sold in your area recently, what did they sell at?, whom was their realtor.
Well of course if you listed it as 3br but it’s 2br people will walk. I wouldn’t make an offer unless it was like 30% below market because the perception is that you are being intentionally deceptive
Slap a Window in the bonus room if you can and list as 2 bedroom with Home Office / Hobby Room. Drop price . Let prospective buyers figure out what they want to tdo with the room or how it adds value.
You didnt mention how big the flex room is? If it is big enough put a closet into it as well.
Marketing a three-bedroom that’s only a two-bedroom will always be a problem. Because you can’t get three bedroom price for two bedroom house no lender is going to appraise that that way. You need to take it off the market and relist it as a two-bedroom home and then adjust the price to a two bedroom home. Then your house will sell. Your house isn’t a three bedroom home.
Update: Or you can go pull permits to add a closet to your flex room and then it will become a legal bedroom. Then you would have to have it updated as a legal three bedroom.
Your realtor thinking flood is involved is nonsense. Nobody buys private flood insurance. It’s like 1% of the flood market.
Listing it as three bedrooms instead of two is what looks the deal for me. A bedroom either meets the definition of a bedroom or it doesn’t. If the flex room is listed as a bedroom then it needs to look like a bedroom when the house gets shown. It sounds like a case of accidental misrepresentation to me.
Plenty of homes are in flood plains. It’s not difficult to get educated about flood insurance and secure financing.
We got pushback when we tried listing our home as a 4 bedroom. The 4th bedroom was an entire 300 sqft ADU but lacked a built in closet. Trying to pass a “bonus room” as a bedroom is just silly.
Fire this agent and start over.
Can someone define what a flex room for me? Is it a room without a built in closet? If so, could you add a closet?
From the amount of showings people seem to want it. The problem is the flex room and the bigger issue is the flood designation. Why not spend a few grand and frame out what is needed to call it a real bedroom? Beyond that no one wants a flood zone house unless it’s at a massive discount to comps not in it. If it’s really not a flood risk then go through the legal process to get it removed from the flood designations. For example in my neighborhood flood zone houses sell for about $200k-$300k less than non flood zone comps. Even if I believed you about it not flooding I don’t want the flood label on it since I will have the same issue when I sell it. Your realtor seems a bit scatter brained. The flood designation is pretty straight forward on the listing and chances are the buyers are not asking that many questions about it even if it is a huge concern for them.
I worked as a real estate appraiser and underwriters were a nightmare when it came to flood maps. In Minnesota we have a lot of lakes and the underwriters just couldn’t understand the concept that the lakefront footage was in a flood plain but the house could never flood unless the whole world flooded.
What is a flex room. Make it an actual bedroom or add bedrooms in the basement. Two bedrooms just doesn’t work for most families.
You say that people were unable to secure funding, but that doesn’t usually happen until they’ve put in an offer. Are you sure they weren’t politely saying that this clearly won’t appraise for what you’re asking based on comps? Add in the cost of insurance and taxes and it’s untenable? This is all pointing to your house being too expensive for most people. If you’re holding out for a unicorn buyer you may end up holding the property longer than you want.
Also, I understand you feel comfortable carrying that level of flood insurance, but that doesn’t mean everyone will. Flood regimes are changing and just because there hasn’t been a flood doesn’t mean there won’t be. Is $250k enough to replace the house and belongings?
Your realtors strategy of getting people to see the house by leaving information out of the listing doesn’t seem to be working. If you want to get people in who actually want and can afford a 2 bedroom house in a floodplain I would be more forthcoming in your listing.
There’s a lot of confusing and/or dishonest stuff in this post. I’m not sure if you’re intentionally trying to be dishonest, or you’re blindly following your agent who sounds incompetent. Either way, stop it.
Listing a 2 bedroom as a 3 bedroom is just foolish. Not only are you pissing off the people who need 3 bedrooms and wasted their time coming to see the place, but you’re also pissing off the people who only needed 2 bedrooms but came to find out that the listing was dishonest.
It’s not really your agent’s job to explain flood insurance. It *is*, however, your agent’s job to advise correctly on price based on the fact that the property is in a flood zone. There’s a really good chance your pricing is too high for a flood zone, and given the shenanigans with the bedroom, I wouldn’t be surprised if the listing didn’t make it clear that the property is in a flood zone. It’s not too difficult to find that information out, and that’s due diligence any buyer should be doing (and lender will do for sure), but most listings for properties in flood zones that I’ve seen make it pretty clear in the listing itself that it’s a flood zone property.
And what’s this talk about taxes? Normal property taxes aren’t really a thing you disclose, because it’s public information. I’m not sure what your agent means about not disclosing them. Anyway, if you or the agent *is* doing something to try and deceive a buyer about what taxes they might have to pay, that’s going to be yet another thing that makes buyers upset.
All of this culminates in most buyers coming to the opinion of, “this seller is not worth dealing with.” And thus…no offers.
Like I said, I don’t know who exactly is the problem here. I’ll give you the benefit of the doubt and assume it’s the agent, since a good agent (ha, oxymoron) would have refused to work with a seller who wanted to be brazenly dishonest. So, what you need to do is wait until the spring and use the time in between to find a different agent. If it’s possible to turn the flex room into a bedroom, do that, and you can list as a 3 bedroom again. If not, list as a 2. Be up front about the flood zone, too. If the house itself is not in the flood zone, you could potentially even be creative by splitting the property so that flood insurance isn’t needed on the structure (but consult legal and tax experts before going down this path).
If it’s not selling, it’s because of the price. Are you sure your agent is being honest with you with respect to value at $579? Maybe she sold you on the price she could list it for.
Look at the feedbacks. They are people who are still interested most likely. Did your agent contact them and say something like, “What price do you think it’s worth?” That’s how she’ll get an offer.
People really don’t like feeling like they were mislead (whether it was intentional or not).