After having the house on the market for 12 weeks, it’s time to increase the buyer’s incentive by lowering the price. I learned that if you change the price, the listing goes back up to the top of Multiple Listings – plus the potential buyers are encouraged by “bargain buying”. We lowered the price from $350,000 to $339,900. My Move Manager immediately noted that the decrease “looks bigger than it is”… a concept that would not have occurred to me, but is absolutely true. By reducing it to $339,900 instead of $340,000, it gives the impression of a much lower price by putting it in the 330,000s group instead of the 340,000s group. Now, at Christmas time, we are having our highest traffic level to date. When I expressed my surprise, Mr. Manager stated that if large corporations are going to transfer families (by giving the employee a big job opportunity in another city), they will often give notice to the employee in October, so that they have time to travel to the new site over the Holidays with their families to scope out the possibilities.
As the weeks go by, my out-of-pocket costs related to the “empty” house on the market have stabilized, but are still at $1400 per month. Granted, this is all not real expense, because after living in the house for 25 years, most of the payments now go to capital rather than paying for interest. I will get most of the money back when I sell the house. But, the cash out is still $1400, and I’m paying it out-of-pocket. That was also a factor in “speeding up” the sale by reducing the price.
An interesting technology experience came from the real estate agent sending me an Agency Agreement Amendment through DocuSign. I was not able to make the signature function work on my Smart Phone (an Android). When I tried to add the signature, the next screen was blank, but it did fine through Gmail, and I was able to print it for my file after a little encouragement.
We will see how the latest “trick of the trade” affects the sale of my lovely old house.