Chasing The Market

One of the things that happened in 2006 is that sellers were slow to react as the market shifted and prices spiraled downward. Whether this was due to denial, their broker was unable to understand what was happening themselves or unable to provide enough information for the seller to realize the state of the market. As inventory increased and the number of sales declined buyers for the 1st time in years had a large selection of homes to choose from. Naturally those priced well stood out against the competition and sold first. If you look at the D.O.M. (Days On Market) the average for 2006 was 120 days which is the number of days from list to on deposit. If you look at the days on market from the last price reduction to on deposit its more like 30 days.This shows that buyers would look at over priced listings and say"nice house but the sellers aren't realistic" ( I don't see a good value). Then when it got to the right price it sold within 30 days.My contention is. if it was priced correctly it would have sold quicker and for a better price. Why? The 1st question all buyers ask is - How long has it been on the market? The longer its been on the more they feel they should offer less. I had one house this past July in Hopkinton where I was able to show the seller the benefit of pricing accurately and it sold in 3 day for for $20,000 over asking. A seller must be provided with enough information to make educated, informed decisions.