An often overlooked factor in determining pricing of homes for sale is to examine expired listings, or the homes that have NOT sold during a particular period in a certain area.  Analyzing the homes that have not sold can be an important step in pricing your home for sale properly.

Why don’t homes sell?  In Northern Virginia, as elsewhere around the state and the country, most homes that do not sell were overpriced from the start.  As a home spends more and more time languishing on the market, sellers eventually reduce the price, but oftentimes in vain, as they are lagging behind the market instead of catching the crest of the pricing wave.  (See my article on this topic: “We can always reduce the price later” – Price Reductions are NOT A GOOD MARKETING PLAN for Northern Virginia Homes).

Alexandria, Virginia Homes that did NOT sell August 13^th – August 20^th

To illustrate this issue, I compiled a brief case study analysis of the homes in Alexandria, Virginia that expired from the Multiple Listing Service unsold during the past week.

7 Alexandria home listings expired in the last week and have not been re-listed:

Here’s a look at the pricing history of each and a comparison to those that actually sold in the same areas:

• 5927 Quantrell Avenue:  Listed on May 10 for $213,900.  No price reductions.  3 comparable units are on the market and 2 under contract at an average list price of $204,980.  OVERPRICED
  
  
• 412 Armistead Street #T-3: Listed June 15.  Short sale auction listing.  Auction was scheduled for July 10.  Listing expired on August 18.  3 comparable units have sold since June for an average sales price of $261,667.  While this particular unit was priced lower, it should have been significantly lower to attract more attention for the auction.  When I listed a property for auction last summer, we advertised the auction with a starting bid about $100,000 under the comparable sales and ended up selling for quite a bit above asking price a week after auction.  This unit was OVERPRICED FOR AUCTION.  Auction attendees expect a deal.
  
  
• 307 Yoakum Parkway #215: Listed April 14 at $287,900 reduced to $278,900 on June 4, expired on August 14.  Average price of 2 comparable sales during same time period was $254,000.  Price reductions never caught up with the market.  OVERPRICED
  
  
• 6300 Stevenson Avenue #515:  Listed May 10 for $284,900 with no price reductions.  6 units sold in this building since May at an average sales price of $260,083.  OVERPRICED
  
  
• 3519 Valley Drive #709:  Listed on June 24 for $364,999, reduced July 11 to $354,000 and again on August 9 to $340,000 before expiring.  The 16 comparable sales from June through today sold for $339,700.  This property was reduced almost to market price, but too late.  TOO LITTLE TOO LATE.  PRICE REDUCTIONS DID NOT WORK.
  
  
• 1610 Suter Street:  Listed on October 8, 2006 for $479,500 reduced on November 20, 2006 to $469,500.  Expired on April 1, 2007.  Re-listed April 19 at $449,900, reduced July 23 to $439,950, and again to $419,950 on August 13.  The 3 comparable homes sold during this period averaged $447,667.  Price reductions were too far behind the market.  PRICE REDUCTIONS COULD NOT SAVE THIS SALE
  
  
• 4529 Peacock Avenue: Listed on February 15 for $675,000, reduced to $665,000 on March 4, $650,000 on April 27, expired on June 16.  Re-listed for $600,000 on June 21 and expired on August 16.  5 comparable homes sold during this time with average price of $561,5000.  OVERPRICED AND NOT REDUCED ENOUGH

Conclusion

A proper pricing analysis, known as a comparative market analysis (CMA) should include information on the comparable properties that have sold, are under contract, active on the market, AND those homes that have NOT SOLD.  In all of the above examples, other comparable homes sold during the same time periods in the same areas.  Proper pricing of your home is key from the beginning.

Contact Brian Block for more information on what has not sold lately in your neighborhood or click here for a preliminary e-mail CMA.