Real Estate Blog - Hey! Have you noticed? There are LOTS of houses selling recently.

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Hey! Have you noticed? There are LOTS of houses selling recently.

There are houses just "flying off the shelves" in my market . . . and many with multiple offers.

What's up?

I'm not personally even CLOSE to believing that the economy is all better now.

We're a LONG way from that day.

So!

What's causing all these houses to sell?

Could it be that the pricing is beginning to get more in alignment with the "NOW" market?

Are Sellers now more willing to price their properties in the ball park of what Buyers are now willing to pay?

The best marketing any REALTOR could do for a Seller is to educate that Seller on the benefits of getting the price RIGHT!

OK!

There's still that 85-90% of the listings that are just sitting out there without much action.

These stale, old listings sit with their stale, old prices and grumble as the new, young listings pop on to the market at "ridiculous" prices and sell immediately.

When's the last time you did a Comparative Market Analysis for your area of expertise?

I just did a little experiment and picked 8 completely different neighborhoods and ran 8 CMAs for activity in each for the past 6 months.

I found an interesting trend.

- The listing price per square of the active listings was on the average @ $10 MORE than the Pending and selling price per square foot.

- The SOLD properties were selling within +/- 3% of the listed price at the time of the sale (that's right, some were selling @ 3% HIGHER than list.

What's going on with this?

Looks like the "Old" Listings are selling when they finally reduce their price into the "Selling range" of within 3% of the closed price per square foot.

Any new listing that enters the market in that range SELLS IMMEDIATELY!

Wouldn't you think the writing is on the wall?

Of course, there will be exceptions. I know of some houses that meet this p/sf "rule" that are sitting still.

I visited a few of them and have discovered they each have "issues" most of which are correctable for less money than they would have to lose in price reductions to overcome.

Things like strong colors... signs of deferred maintenance . . .

and others that have weird issues like really slopey driveways and funky yards,

In the end, it is the PRICING that is selling houses these days.

The buying public expects top shelf condition these days and won't settle for less without a DEEP pricing discount.

We are all "seasoned" enough in this new and still uncertain economic environment to know now the "realistic" price points in our respective areas of expertise ... the "Sweet Spot".

The houses that are selling are those that are the most AFFORDABLE for the buyers.

Hmmmm . . . Supply and demand drive pricing.

Listen!

Enjoy the success,

I'm just sayin'

Best,

--
Barry Owen
Principal Real Estate Broker
Keller Williams Realty
30 Burton Hills Blvd Suite 175
Nashville, TN 37215 - Green Hills

Call me: 615-568-2123
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Posted by Barry Owen on 10/05/2009 06:10 AM

Comments (7)

Pricing Houses to Sell in the ActiveRain Channel

pricing, sweet spot, selling a home

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7 Comments on Hey! Have you noticed? There are LOTS of houses selling recently.

OCT

Barry... When a home is priced right "ahead of the market", it will sell quickly. When I have clients that understand this, it makes my job easier. Right now I have NO inventory.. just do to this.. homes priced right.

I see the housing market moving forward and regaining steam... but at a snails base.

valerie osterhoudt

Yes, many homes selling quickly. Hopefully this will be a sustainable trend. Many of the current sales going to first time buyers that previously couldn't afford homes.

Hi Barry,

Here in Southern CA the low end of the market is in a feeding frenzy. Multiple offers. Not enough inventory. However, the high end homes are still moving quite slowly.

We are still up to our necks in foreclosures which if priced right are selling quickly. Regular listings are mostly languishing unless they compete by price and condition. One trend I have noticed which I think is very dangerous is increasing prices at this point. We need to clear out all these foreclosures and then get the regular market back up an running.

Price is king but don't tell the sellers, then what do they need us for. Here we have had a 50% drop in inventory due to people realizing their not going to get that price.

Barry - I think many sellers are finally beginning to understand the realities of this market. Though it would be nice to sell for 3 year ago prices, it's not happening. Serious sellers listen to their agent and move on.

It's a combination of extremely intelligent pricing, massive exposure and proper presentation. Oh wow! Isn't it a coincidence that a professional real estate agent can help you with all THREE! Price is king! Thanks Barry.

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