Sunday, December 10, 2006
Listener question.
Question: We have had our home on the market since mid-July. We've dropped the price once and have many showings (40+) but no bites. Our broker is telling us to drop the price another $25,000 since homes in our price range ($500,000) don't seem to be selling.
We don't have to sell and are considering:
Taking it off the market completely and putting it back on this Spring.
Waiting until after Christmas to drop the price or not at all and letting the listing run out.
Answer: Given that the property has been shown more than 40 times the problem is unlikely to be with the broker.
Since you don't have to sell would it make any sense to rent the property for a year or two? Be careful that you do not lose the residential capital gains exclusion that comes from living in the property for two of the past five years.
I'd stick with your broker -- and also speak with a tax professional.
We don't have to sell and are considering:
Taking it off the market completely and putting it back on this Spring.
Waiting until after Christmas to drop the price or not at all and letting the listing run out.
Answer: Given that the property has been shown more than 40 times the problem is unlikely to be with the broker.
Since you don't have to sell would it make any sense to rent the property for a year or two? Be careful that you do not lose the residential capital gains exclusion that comes from living in the property for two of the past five years.
I'd stick with your broker -- and also speak with a tax professional.
