Now is ALWAYS the time to sell ... if you need to sell.
We do not always have control over life - do we EVER, really? We get relocated. We get downsized. We get outsourced. Our kids move out. Our kids move back in. Our health fails. Basically, our needs always change and selling the house is what HAS to happen.
The media has put many homeowners-that-need-to-sell in a selling "paralysis". They NEED to sell, but are afraid of the market.
This brings me to the final Housing Market Media Myth that I want to dispel:
Myth #3: "I Cannot Sell My Home in This Market"
Then you are in the wrong market.
I know, you are thinking, "I cannot change my market. I cannot pick up my house and sell it in a different area. Mariana, you are nuts." Well, first of all, you would not be the first person to call me nuts, so be a little more creative. Second, you CAN change your market.
See, this is where the the NEW Two Housing Market theory comes into play. Actually, it is not new. There have always been two markets: The market of homes that SELL and the market of homes that do NOT SELL. Derek and I have been discussing this theory for quite some time and finally grasped it visually when we attended the Keller Williams Mega Camp in August, where they discussed the Tale of Two Markets:
Market #1: Homes that SELL
Market #2: Homes that DO NOT SELL
Last year (and for many years before last) almost any home seller could throw a random dart at the "dartboard of price and condition" and plop their home on the market and get an offer in almost record time. The bulls' eye was HUGE.
You could have an overpriced house in okay condition and it would get an offer - many times in WAY less than 6 months on the market ... sometimes in just days. Market #1 was very large - containing many of the available homes for sale and Market #2 was very small - containing very few homes for sale.
Today, we have the same two markets, but the bulls' eye has consolidated closer to the center of "perfect" - Perfect Price and Perfect Condition. Now, "dart throwing" must be handled by someone who can aim and HIT the perfect price. In most cases only a professional can hit the mark. (Yes. That was a plug for hiring a competent real estate agent to sell your home.) Now, Market #1 is smaller than Market #2.
There is less room for error in pricing when the markets look like this. Over pricing your home - even by just a couple thousand dollars could be the difference in being in Market #1 and Market #2. (Check Out This Example) Pricing a home to make sure it lands in Market #1 involves a careful study of:
Current Competition: If homes JUST like yours are NOT selling at $200,000 then your house needs to be priced lower than $200,000.
Pending Sales: If homes JUST like yours ARE selling for $450,000 then your house should be priced at or below $450,000.
Absorption Rate: If only 10% of the homes JUST like yours are selling in a reasonable amount of time, then your house needs to be priced at or below those 10% of homes to sell.
Also, Staging your home is more important now than ever. Home stagers can be hired for anything from consultations to full, vacant home designing and furnishing. If a Buyer is looking at 3 similar homes that are priced about the same, and two of the homes show okay, and one home has been staged to show beautifully, who do you think will get the offer? The one that requires LESS imagination and LESS work will ALWAYS get the offer.
Having the BEST priced home in the BEST condition will be the difference between an OFFER and EXPIRED listing. It is important to note that well-priced homes in nice condition are STILL SELLING and in many cases STILL GETTING MULTIPLE OFFERS.
So, you DO have control over what market to sell your home in. And you CAN sell your home, when you price it right and stage it well.
Posted By: Mariana Wagner - Colorado Springs Real Estate All graphs and diagrams created by Mariana Wagner. The 80/20 Rule is estimated as these ratios will be slightly different from area to area. You have permission to use them if you notify me and credit/link to me. *This post can also be found at the Colorado Springs Real Estate Connection.