Why do some homes sell the first week on the market, yet there is 10 months of inventory for sale? Fifty percent (50%) of the time is because it is the nicest home of the bunch. The other fifty percent (50%) of the time is because...
...the home is priced exactly right! And actually, it's the combination of both factors --- the nicest home of the bunch and priced right; to offer the best deal for the money as oppose to all others.
Now we also know the home could meet both criteria, and still not sell because of location, because of color in carpets, walls, etc. But the general rule is, if the home is priced right and is free of defects, meets or beats all competition in street appeal, and all other factors are equal, then it will sell first!
But what really motivates the author to write this article, is that most sellers (as well as their listing agents) have a tendency to price their homes above true market value. The 2008-2009 markets clearly warns sellers, not to be in denial about market conditions. But agents and sellers continue to defy the tea leaves never the less, pricing homes too high, and for too long, and end up on the market for over 180 days and no buyers touring the property for months! Does your listing resemble that remark?
The author advocates that owners, facing an eventual foreclosure, could sell beforehand, if sellers would just focus on cutting their equity rather than holding out to the last for above market profits.
High inventory levels, combined with weak lending activity, does not yield a lot of motivated buyer, let alone those who are qualified. However, as an owner, and a listing agent, there is a lot you could be doing to attract the buyers that are in fact out there; by improving the marketability of the listing, and thus effectively bringing it to the top of the competition.
Give this idea a try --- if this doesn't work, nothing will!
This up front solution, could change the whole dynamics of real estate. It could rapidly send inventory, to much lower levels, in no time, especially if agents and sellers would follow the following guidelines!
Agent and Sellers, agree to follow these steps and you will get results:
---Sellers, if you have been on the market for 180 days and your home hasn't sold, get an immediate appraisal or cancel the listing, and stay off the market for at least 6 months, get an appraisal then, and list for that appraised price, and no more!
---New Sellers not on the market yet, but wanting to be, choose the listing agent of your choice, but only choose an agent who can provide you the names and addresses of potential buyers before you list. How many agents can do that? Every listing agent should be able to. If they can't, then they obviously not the agent for you.
---New Sellers, sign your listing agreement, subject to you, within 24 hours ordering an independent professional appraisal at sellers expense (and listing agent contributes to the seller, an appraisal rebate at closing), and upon notification of the appraised price, list the home for that price, otherwise cancel the listing.
The applause meter isn't moving and I hear a lot of growling over what I just wrote. Well folks, plain and simple, if you want results, you have to do what others have not --- I'm telling you, if you want to move this market along at a much faster pace, it starts with putting appraisals ahead of the process rather than at the end!
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