Raise or drop the price - expierenced agents please chip in!

[Kate J.]

Folks,

investor/flipper/builder/licensed RE agent is here.

I have a downtown condo in a beautiful new construction built in Austin. I believe it's flawless!

Now, the building is priced depending on the elevation of condo. Naturally, one would want to live on the 40th floor with views instead of on the 10th floor smelling nearby roads.

Since I was literally the first to place the unite on market (since I licensed and make direct decisions on my properties), the prices distributed as follows (for the same layout): 850k (20th floor), 799k (30th floor MINE), 950k (38th floor) and 980 (39th). Now I had about 10 showings then a storm hit Austin and no showings after that.

So instead of lowering price I decided to bump it to 830k, thinking that potential buyer would get scared and will jump on it until we bump even higher.

didn't work as planned, still no showings.

the agent that lives in the building in same layout says the unit is gorgeous and will find its buyer. I can't disagree with the first statement, finding a buyer is more challenging.

Judging by currently listed units, the price for this one should be between 850k and 950k and probably closer to 950k. On the other hand I don't want to sit on it forever!

What would be your advise? Lower the price or make it higher and wait with others? Or just keep as is and don't make many unnecessary moves?

Could it be that all the agents that listed those condos are delusional and overpromissed to their sellers which is reflected in price? One unit on the 38th floor gave 1150k, then dropped below 1mil in couple days after listing. My general rule: drop the price if it sits for more than 3 weeks. But on the other hand I could probably benefit if I stick with other agents and just wait.

Thoughts?

[Dustin Allen]

@Kate J.

How much other units are listed for should be secondary to how much other units sold for. Has anything at all sold in this building yet? If not, you are going to have to wait for someone to set the bar or you’re just going to have to set it yourself. All the basics apply here. Drop the price if you have to move it, no showings means you’re listed too high. If you want to push it and try to set the bar high, raise it to where you think and be patient. Someone will sell eventually and then you’ll have actual data to judge yours on.