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Selling #504 @ the ‘Taj: Gasp, price reduction!

By Matt Goyer July 16, 2007

I just got home from a long weekend in Vegas; I have much less money than when I left but we had a blast. When you combine an overdrawn bank account with my condo approaching its comparables average days on market it’s time for something about my listing to change. The options we considered:

Free scooter
Free Landrover lease
Paid closing costs
Free furniture
Two years paid HOAs
Etc, etc, etc

This morning with a serious hangover we knocked the price down $5,000 to $385,000. While the least sexy it seemed the least complicated. And I know some of you won’t be happy until I sell it for less than I paid.

I own and manage Urban Living, a boutique Seattle and Bellevue real estate brokerage. I love lofts, floating homes, new construction, and mid-century moderns, but I will help you buy or sell just about anything!

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64 responses to “Selling #504 @ the ‘Taj: Gasp, price reduction!”

Bob says:

July 17, 2007 at 3:48 am

If someone likes your apartment, that $5000 won’t make much of a difference. I don’t know how Redfin works but I think not having an open house is a mistake. If I am house hunting, I want to see a few places in person over several weekends.
Bob says:

July 16, 2007 at 7:48 pm

If someone likes your apartment, that $5000 won’t make much of a difference. I don’t know how Redfin works but I think not having an open house is a mistake. If I am house hunting, I want to see a few places in person over several weekends.
mattgoyer says:

July 17, 2007 at 5:20 pm

Hi Bob, thanks for the feedback. I appreciate it.

When you sell with Redfin you need to host your our open house. I haven’t hosted one because from what I hear open houses very rarely sell houses. They’re more so a tool for the agent hosting the open house to find new clients. Since I’m not an agent and don’t need to find new clients I don’t see the value in hosting one. The other problem I have with hosting an open house is that since I need to do it myself and since I am out of town every weekend in July I’m simply unable to do so.
Matt says:

July 17, 2007 at 9:20 am

Hi Bob, thanks for the feedback. I appreciate it.

When you sell with Redfin you need to host your our open house. I haven’t hosted one because from what I hear open houses very rarely sell houses. They’re more so a tool for the agent hosting the open house to find new clients. Since I’m not an agent and don’t need to find new clients I don’t see the value in hosting one. The other problem I have with hosting an open house is that since I need to do it myself and since I am out of town every weekend in July I’m simply unable to do so.
jo says:

July 17, 2007 at 7:21 pm

how come there is no sign in the front of the building?
jo says:

July 17, 2007 at 11:21 am

how come there is no sign in the front of the building?
mattgoyer says:

July 17, 2007 at 7:23 pm

Jo, I believe the condo assoc rules don’t allow non-developer signs. That said, I haven’t actually read the rules. I should verify this tonight.
Matt says:

July 17, 2007 at 11:23 am

Jo, I believe the condo assoc rules don’t allow non-developer signs. That said, I haven’t actually read the rules. I should verify this tonight.
CG says:

July 17, 2007 at 7:26 pm

Don’t know if our experience is typical or not. My partner and I purchased our condo because of our favorably surprised reaction to the unit and the building from an open house. We attended the open house just as a lark. We would not have checked out the property otherwise.
CG says:

July 17, 2007 at 11:26 am

Don’t know if our experience is typical or not. My partner and I purchased our condo because of our favorably surprised reaction to the unit and the building from an open house. We attended the open house just as a lark. We would not have checked out the property otherwise.
Phil says:

July 17, 2007 at 8:02 pm

Well, you seem to be competing with 17 other 1bd’s between $350k – $400k just in your neck of the woods alone. So I don’t think price dropping is going to help (w/o going extreme:-). Looks like you need to get as much exposure as you can, so I agree with the above, get that sign up, with brochures (I bet the HOA can’t legally stop you; you’re allowed one sign in CA, might be the same here) and start those open houses.
It might pay to hire somebody to do the open house for you. A nice, friendly, pretty, articulate female is more likely to sell a condo, than a tired, bored, desperate homeowner.
Phil says:

July 17, 2007 at 12:02 pm

Well, you seem to be competing with 17 other 1bd’s between $350k – $400k just in your neck of the woods alone. So I don’t think price dropping is going to help (w/o going extreme:-). Looks like you need to get as much exposure as you can, so I agree with the above, get that sign up, with brochures (I bet the HOA can’t legally stop you; you’re allowed one sign in CA, might be the same here) and start those open houses.
It might pay to hire somebody to do the open house for you. A nice, friendly, pretty, articulate female is more likely to sell a condo, than a tired, bored, desperate homeowner.
Jeff says:

July 17, 2007 at 8:33 pm

I also bought my house because of an open house, not because I found it in the MLS. I think they have their value (and people who see the house tell friends who are looking…)
Jeff says:

July 17, 2007 at 12:33 pm

I also bought my house because of an open house, not because I found it in the MLS. I think they have their value (and people who see the house tell friends who are looking…)
Rachel says:

July 17, 2007 at 9:13 pm

I don’t know about that CA rule Phil. My HOA (in Bellevue) flat out prohibits sale signs in windows or in the complex entrance-well anywhere really. Only signs they allow are open house during very restricted open house hours (1-6 on Wednesdays and Sundays.
Rachel says:

July 17, 2007 at 1:13 pm

I don’t know about that CA rule Phil. My HOA (in Bellevue) flat out prohibits sale signs in windows or in the complex entrance-well anywhere really. Only signs they allow are open house during very restricted open house hours (1-6 on Wednesdays and Sundays.
Cameron says:

July 17, 2007 at 9:18 pm

Some condo complexes do not allow signs OR lockboxes so yes, they can legally stop Matt IF there is a rule. But there might not be.
Cameron says:

July 17, 2007 at 1:18 pm

Some condo complexes do not allow signs OR lockboxes so yes, they can legally stop Matt IF there is a rule. But there might not be.
EconE says:

July 17, 2007 at 11:27 pm

If you hire a bunch of hot chicks (as mentioned above) to run your open houses I’d even get off my lazy a$$ and trudge up the hill to check it out….not your place…the girls that is.;o)

Remember…if you hold an open house yourself…imagine all the “Goyer-Voyeurs” you’ll end up getting.
EconE says:

July 17, 2007 at 3:27 pm

If you hire a bunch of hot chicks (as mentioned above) to run your open houses I’d even get off my lazy a$$ and trudge up the hill to check it out….not your place…the girls that is.;o)

Remember…if you hold an open house yourself…imagine all the “Goyer-Voyeurs” you’ll end up getting.
jo says:

July 18, 2007 at 12:18 am

i think you all are forgetting this is capitol hill, guys may work better than cute chicks
kh says:

July 18, 2007 at 12:18 am

i think EconE is onto something :)
jo says:

July 17, 2007 at 4:18 pm

i think you all are forgetting this is capitol hill, guys may work better than cute chicks
kh says:

July 17, 2007 at 4:18 pm

i think EconE is onto something :)
Dan Ji says:

July 18, 2007 at 12:57 am

*warning: useless comment*

“Goyer-Voyeurs” LOL! Matt, you should make t-shirts!
Dan Ji says:

July 17, 2007 at 4:57 pm

*warning: useless comment*

“Goyer-Voyeurs” LOL! Matt, you should make t-shirts!
downtown says:

July 18, 2007 at 4:27 pm

williams marketing has a sign outside of the meritage???
downtown says:

July 18, 2007 at 8:27 am

williams marketing has a sign outside of the meritage???
Brett F. says:

July 18, 2007 at 10:29 pm

Williams was the original listing agent and they may have control over the site signage until the last unit they represent sells. Many projects limit the signage to one that states the name of the project, which is a good idea. Could you imagine all the yard arms in front of 220 Westlake. Associations being comprised of owners should allow signage that states there is a unit for sale as well as allow for multiple flyer boxes. Pre-real estate sales, I managed a number of apartments on the hill and flyers always gave me a competitive advantage. Ive also sold many condos on the hill including projects such as Sheffield, Monique Lofts, Maxwell as well as individual units. Flyers rule but are hard to keep full. The problem with condo communities is with one yard arm and no flyers, people cant tell what is available in the building. This was just one of the missed opportunities we wanted to solve in (shameless plug coming) CondoCompare.com. In a high foot traffic area like the hill, the lack of flyers is a major missed marketing opportunity.

As far as price, $5,000 is worthless. Dont bother with a price reduction until you are willing to go 5%-10%. I have also sold houses at open houses. The likelihood of selling at the open is very low but marketing is about exposure and whatever you can do to increase exposure increases your likelihood of selling before it becomes stale on the market and you have to lower price significantly.
Brett says:

July 18, 2007 at 2:29 pm

Williams was the original listing agent and they may have control over the site signage until the last unit they represent sells. Many projects limit the signage to one that states the name of the project, which is a good idea. Could you imagine all the yard arms in front of 220 Westlake. Associations being comprised of owners should allow signage that states there is a unit for sale as well as allow for multiple flyer boxes. Pre-real estate sales, I managed a number of apartments on the hill and flyers always gave me a competitive advantage. I’ve also sold many condos on the hill including projects such as Sheffield, Monique Lofts, Maxwell as well as individual units. Flyers rule but are hard to keep full. The problem with condo communities is with one yard arm and no flyers, people can’t tell what is available in the building. This was just one of the missed opportunities we wanted to solve in (…shameless plug coming…) CondoCompare.com. In a high foot traffic area like the hill, the lack of flyers is a major missed marketing opportunity.

As far as price, $5,000 is worthless. Don’t bother with a price reduction until you are willing to go 5%-10%. I have also sold houses at open houses. The likelihood of selling at the open is very low but marketing is about exposure and whatever you can do to increase exposure increases your likelihood of selling before it becomes stale on the market and you have to lower price significantly.
Matt says:

July 18, 2007 at 4:36 pm

Re: Signange

I’ve checked and section 11.8 of our HOA rules prohibits signs of any kind. I can’t even put a sign in the window. And of course the developer can do whatever they want which seems unfair to me. After the building is turned over to the HOA I think the developer should have to play by the same rules as the home owners.

Re: Open houses

Anyone interested in hosting an open house for me this weekend? Pay negotiable based on how well you appeal to the Cap Hill crowd :)
mattgoyer says:

July 19, 2007 at 12:36 am

Re: Signange

I’ve checked and section 11.8 of our HOA rules prohibits signs of any kind. I can’t even put a sign in the window. And of course the developer can do whatever they want which seems unfair to me. After the building is turned over to the HOA I think the developer should have to play by the same rules as the home owners.

Re: Open houses

Anyone interested in hosting an open house for me this weekend? Pay negotiable based on how well you appeal to the Cap Hill crowd :)
mattgoyer says:

July 19, 2007 at 12:37 am

Re: Size of price reductions

I’ve now heard from several people that a $5,000 reduction is ‘meaningless’ but haven’t heard a good explanation as to why it is meaningless?
Matt says:

July 18, 2007 at 4:37 pm

Re: Size of price reductions

I’ve now heard from several people that a $5,000 reduction is ‘meaningless’ but haven’t heard a good explanation as to why it is meaningless?
Bob says:

July 19, 2007 at 1:27 am

Just walk into those condo sales office and ask the girl if she or any of her pretty friends is available to do an open house for you.
Bob says:

July 18, 2007 at 5:27 pm

Just walk into those condo sales office and ask the girl if she or any of her pretty friends is available to do an open house for you.
Matthew says:

July 19, 2007 at 2:37 am

Matt,

Be patient. It hasn’t been on the market that long. I agree with the rest of the people on this blog, if you are going to drop the price, make it a substantial cut. 5,000 is a drop in the bucket.
Matthew says:

July 18, 2007 at 6:37 pm

Matt,

Be patient. It hasn’t been on the market that long. I agree with the rest of the people on this blog, if you are going to drop the price, make it a substantial cut. 5,000 is a drop in the bucket.
DMG says:

July 19, 2007 at 3:49 am

I agree,have patience grasshopper!
DMG says:

July 18, 2007 at 7:49 pm

I agree,have patience grasshopper!
Phil says:

July 19, 2007 at 9:13 pm

I’m shocked that HOA’s in WA would block temporary For Sale signs; though I can see a developer not allowing them until they’ve sold out. Just another item to look out for when buying – it would stop me from buying.

Be patient, you’ve got a nice place to sell and the price is competative.
Phil says:

July 19, 2007 at 1:13 pm

I’m shocked that HOA’s in WA would block temporary For Sale signs; though I can see a developer not allowing them until they’ve sold out. Just another item to look out for when buying – it would stop me from buying.

Be patient, you’ve got a nice place to sell and the price is competative.
jo says:

July 19, 2007 at 9:20 pm

I can see why HOA’s would allow no signs, however there should be at lease one generic sign with something underneath for pamphlets.
jo says:

July 19, 2007 at 1:20 pm

I can see why HOA’s would allow no signs, however there should be at lease one generic sign with something underneath for pamphlets.
Peckham says:

July 20, 2007 at 3:21 am

“Ive now heard from several people that a $5,000 reduction is meaningless but havent heard a good explanation as to why it is meaningless?”

Because your asking price is $30,000 too high.
Peckham says:

July 19, 2007 at 7:21 pm

“I’ve now heard from several people that a $5,000 reduction is ‘meaningless’ but haven’t heard a good explanation as to why it is meaningless?”

Because your asking price is $30,000 too high.
mattgoyer says:

July 20, 2007 at 6:49 am

Peckham, can you point to some recent past sales which support that conclusion?
Matt Goyer says:

July 19, 2007 at 10:49 pm

Peckham, can you point to some recent past sales which support that conclusion?
jo says:

July 20, 2007 at 7:40 am

i’d be willing to bet…no
jo says:

July 19, 2007 at 11:40 pm

i’d be willing to bet…no
richard says:

July 20, 2007 at 2:51 pm

On the $5K price reduction: that works out to a be about $28/month less on the buyers mortgage. Given that someone buying a unit like this probably makes upwards of $10K/month, it’s really insignificant.
richard says:

July 20, 2007 at 6:51 am

On the $5K price reduction: that works out to a be about $28/month less on the buyers mortgage. Given that someone buying a unit like this probably makes upwards of $10K/month, it’s really insignificant.
j says:

July 20, 2007 at 4:47 pm

Across the street at the Marq. Two past sales last 6 mo.
studio – 426 sq ft @ $215k = $505/sq ft took about 3 months
1 bd/ba – 614 sq ft @ $310k = $503 / sq ft took 1.5 months

Also check out past sales at the Maxwell Building up on Denny.
Also what has been lingering on the market for a while in the high 400’s / sq foot range at that building.

So, 714 sq ft @ 503 = 359k
Add on, $20k for a view? What’s a better view worth?

But, remember the .5 point jump in mortgages recently, and it’s effect on prices immediately, not too mention more and more inventory.
j says:

July 20, 2007 at 8:47 am

Across the street at the Marq. Two past sales last 6 mo.
studio – 426 sq ft @ $215k = $505/sq ft took about 3 months
1 bd/ba – 614 sq ft @ $310k = $503 / sq ft took 1.5 months

Also check out past sales at the Maxwell Building up on Denny.
Also what has been lingering on the market for a while in the high 400’s / sq foot range at that building.

So, 714 sq ft @ 503 = 359k
Add on, $20k for a view? What’s a better view worth?

But, remember the .5 point jump in mortgages recently, and it’s effect on prices immediately, not too mention more and more inventory.
kh says:

July 20, 2007 at 5:31 pm

while close in proximity the marq doesn’t have the same level of finishes as the meritage…
kh says:

July 20, 2007 at 9:31 am

while close in proximity the marq doesn’t have the same level of finishes as the meritage…
Peckhammer says:

July 20, 2007 at 6:24 pm

“Peckham, can you point to some recent past sales which support that conclusion? “

M2M condo appreciation is -3.4% this month and was -1.7% last month. IOW, we are experiencing negative appreciation in the condo market. The longer your place is on the market, the more effect it will have on your sale.

I would not expect more than 6% appreciation on your unit, and the longer your place is on the market, the more effect it will have on your final sales price. Languishing could result in depressed appreciation or a loss. Balanced against the carrying costs, the longer your place is on the market, the more effect it will have on your “profit margin.”
Peckhammer says:

July 20, 2007 at 10:24 am

“Peckham, can you point to some recent past sales which support that conclusion? “

M2M condo appreciation is -3.4% this month and was -1.7% last month. IOW, we are experiencing negative appreciation in the condo market. The longer your place is on the market, the more effect it will have on your sale.

I would not expect more than 6% appreciation on your unit, and the longer your place is on the market, the more effect it will have on your final sales price. Languishing could result in depressed appreciation or a loss. Balanced against the carrying costs, the longer your place is on the market, the more effect it will have on your “profit margin.”
bht says:

July 31, 2007 at 12:43 am

kh,

plastic bathtubs at ‘taj are at a “higher level” of finish?
bht says:

July 30, 2007 at 4:43 pm

kh,

plastic bathtubs at ‘taj are at a “higher level” of finish?
kh says:

August 1, 2007 at 4:29 pm

an acrylic bathtub is an acrylic bathtub, look at all the developments around town… at least they added the tile surround. imo, the ‘taj cabinets are at least solid wood, the carpet is a decent cut/loop (more than a cheap $6/sq. yd. cut pile), and it has better quality engineered flooring than the marq that was built a few years ago.

but i agree, it’s all relative…
kh says:

August 1, 2007 at 8:29 am

an acrylic bathtub is an acrylic bathtub, look at all the developments around town… at least they added the tile surround. imo, the ‘taj cabinets are at least solid wood, the carpet is a decent cut/loop (more than a cheap $6/sq. yd. cut pile), and it has better quality engineered flooring than the marq that was built a few years ago.

but i agree, it’s all relative…
Jean says:

August 9, 2007 at 8:48 am

Well I stumbled upon your blog and I just had to comment.

I think:
pricing wise –> ok.
Open house wise –> not so ok.

my take: Open houses do generate business for agents (to a certain degree yes) BUT buyers don’t go to open houses thinking “oh I’m gonna give some agent business today!” obviously they’re going in to really check out the place b/c they’re interested in the neighborhood or your place (if you marketed it strategically) Therefore, that little exposure you give on your place through an open house –> speaks volume. (You never know, a neighbor might have someone in mind for your place you know)

Price cut: I think you’re about that range. I can see that people had bought some of the places for about 480 price/sq ft or so in the recent past. considering your view and your level of being higher, pricing is pretty competitive somewhat I must say. And yes I just chime in: 5000 is not that much different. IF you were doing open houses, marketing, blah blah blah and still had nobody interested? only then should you consider a re-evaluation of pricing strategy. (CDOM: urs is only 41)

Bottom line: marketing. You just never know who or what type of people you’d attract. Just do yourself a favor and spend time/money if you really want to sell your place. If not (Im aware that redfin does not market for u), then just hire an agent. That $5000 price cut you made can easily be spent on an agent that knows what they’re doing.

Just a thought. (ugh i wrote too much for a blog ahwatever)
Jean says:

August 9, 2007 at 12:48 am

Well I stumbled upon your blog and I just had to comment.

I think:
pricing wise –> ok.
Open house wise –> not so ok.

my take: Open houses do generate business for agents (to a certain degree yes) BUT buyers don’t go to open houses thinking “oh I’m gonna give some agent business today!” obviously they’re going in to really check out the place b/c they’re interested in the neighborhood or your place (if you marketed it strategically) Therefore, that little exposure you give on your place through an open house –> speaks volume. (You never know, a neighbor might have someone in mind for your place you know)

Price cut: I think you’re about that range. I can see that people had bought some of the places for about 480 price/sq ft or so in the recent past. considering your view and your level of being higher, pricing is pretty competitive somewhat I must say. And yes I just chime in: 5000 is not that much different. IF you were doing open houses, marketing, blah blah blah and still had nobody interested? only then should you consider a re-evaluation of pricing strategy. (CDOM: urs is only 41)

Bottom line: marketing. You just never know who or what type of people you’d attract. Just do yourself a favor and spend time/money if you really want to sell your place. If not (Im aware that redfin does not market for u), then just hire an agent. That $5000 price cut you made can easily be spent on an agent that knows what they’re doing.

Just a thought. (ugh i wrote too much for a blog ahwatever)

Selling #504 @ the ‘Taj: Gasp, price reduction!

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