Need advice in a tough market-no buyers

[Julie Peak]

Hello! I have a client who is selling her executive townhouse for $349900. She has dropped the price over $25K over 90 days and still no offers. There are 5 other units in the same complex for sale-ours is the lowest price. Do you think it would be better for her to hang on to it until spring and try to sell again for the higher price? OR do you think she should drop the price again and try to get someone in there? My other option is to find a renter for 6 months to help cover the payments over the winter. Last thought is to try to sell it to an investor since the HOA allows rentals and do a direct sale off market? Are there any private money or creative financing that you could share with me that might help out situation? Thank you all!

[James Hamling]

I am confused here @Julie Peak.

Not only are you presenting yourself as a real estate agent in-market, but a real estate Broker. Yet, the things your saying STRONGLY sound that you have absolutely no clue what your doing or talking about. 

There is so many "red-flags" here I am not sure where to start..... 

- you state it's an "executive" townhouse. Yet state $349,900 as a market REJECTED selling price. That is nowhere close to "executive" level pricing.     I most recently sold one nearby, a REAL executive townhome, 3br 3ba 2,800sqft in the $700's. 

Median home price is over $350k. I have no idea what makes you think it's an "executive" level residence but the price and market rejection clearly states it is NOT. 

- You not there is a GIANT supply glut of listed properties to this one, and then speak that your priced lowest, as if that's any kind of anything special. Anyone of experience we know that's called a falling-knife. 

- A 6 month renter is NOT something one gains on demand. And in this market everyone knows 12 months is the standard minimum for a standard tenant. Most anything less requires unit to be furnished. And even then most between 3 months and 1yr are corporate rentals and at that rare. Again, not an "at demand" a person can readily get, especially not in Victoria. Minnetonka, Excelsior is generally the western boundaries for such. 

- Waiting to next spring does not mean that which is solidly rejected now will later sell. You'd have to understand WHY it's not selling now, and that this reasoning would be alleviated at that time. Not just a change of seasons. 

- Your investor idea...... Are you kidding me? So you think an investor will pay what retail market has rejected? Seriously, do I need to explain this?     And no mention to the numbers which is the singular reason investors make a purchase and by which purchase price is formulated. 

- Then the mention of could you get a 10% down mortgage to buy it as an investment property.... You hoisted a giant "I have no idea what I am talking about/doing" banner right there. 

I can not comprehend how someone of such total inability and lack of knowledge is a real estate broker, or presenting themself as an agent in any capacity. You clearly don't know what your doing and should NOT, by the rules and codes of NAR, be a primary listing agent on anything right now. At this level of knowledge and experience you need to be a co-agent and learning the ropes of things under an experienced person who can guide things.

I'd generally say nothing but when see your a licensed BROKER.... You need to do the ethical thing and inform this person that your not of the correct knowledge or skill level to best represent this transaction.