House is a custom 5 bed/3 bath home finished in 2021 in a new construction Midwest neighborhood (so lots of new construction competition) assigned to excellent schools. Price paid "on paper" was $615k (we actually paid closer to $650k with the wrought iron fence, corner lot cement overages, shower rain head upgrade, etc. that we paid in cash during the build). We have been decreasing the price since it hit the market in September and are now sitting at $565k. Realtor is experienced in this market and at this price point.
On the local market, two similarly sized houses in that neighborhood sold for $600k in the last 30 days. In the last 3 months, 12 similarly sized houses have sold for $544k-$650k (only 1 house was $544k – the rest went for $568k+).
Feedback has mostly been that the basement is too small or they don't like the school assignment (elementary school assignment was changed recently and now the neighborhood doesn't feed into the closest school due to capacity issues) so it isn't feedback we can do much about. We could finish the basement bathroom making it a 4 bath but that would be an investment of $10k with no guaranteed return on a house that's already going to lose us $100k+.
WWYD? Keep dropping the price? Wait and see if things pick up in the spring? Add the bathroom and hope that entices the right seller? We're losing so much money and I just want it sold.
Our house isn't selling…do we just keep dropping the price? Any advice?
byu/justgiveit_away inRealEstate
Posted by justgiveit_away
5 Comments
I feel like people who bought in 2021 are at the peak of “I overpaid”.
We put reasonable offers on 2 houses bought in thay year. The owners are obsessed with what they paid, not with what it’s currently worth.
It’s January. Nobody wants to buy in January except deal hunters.
Yes, lower the price.
That basement feedback is brutal since there’s not much you can do about it. I’d probably skip the bathroom reno – throwing another 10k at a house that’s already bleeding money feels like chasing good money with bad
The school thing is gonna keep hurting you no matter what price you’re at. Maybe price it more aggressively now instead of death by a thousand cuts with these small drops
Bro where are you getting basement and bathroom finishes for $10k, pls let a sister know
Your problem is January in the midwest. If you can wait until spring (Real Estate season!), do that before you drop again. It’s a numbers game, and if those market comps are more or less similar, you should keep it right priced. If you really can’t wait that long, then I guess you’ll need to lower the price, but if you can hold out until spring you might make an extra 25-50k.
Yes, keep dropping