We have all heard of late that to sell we must price ahead of the curve, keep the price reductions coming. With our market here in Port St Lucie spiraling down much more quickly than we anticipated where does it stop. None of us can say, we do not hold the future in our hands. Our sellers are asked again and again to drop the price to keep with market trends. What is your strategy?
Aggressive pricing and willing sellers can be the answer. When the market was climbing we could price slightly ahead of the curve and in a short time the market would catch up. Now we find we must be even more aggressive in pricing downward. With thousands of homes to choose from buyers look at price first! Some sellers I have worked with in the past year refuse to believe that they needed to drop the price again and again to keep up. Other were willing to follow advice and were able to catch the current market before it dropped even further. Take a look at how your listings are doing. Compare them and how the are willing to price to Henry Homeowner. Henry was wanting to sell with in 60 days but was not wanting to start at the lowest price, wanting to get the most he could for his home. He listed at the most the CMA said he might get.
Let's compare him to others on the market:
- Homeowner A: $235,900
- Henry's Home: 225,000
- Homeowner B: 219,900
- Homeowner C: 215,000
- Homeowner D: 199,900
Henry appears to be in a good position to sell in today's market. Let's see what happens 30 days later.
- Homeowner A: Expired
- Henry's Home: $219,000
- Homeowner B: 215,000 (Reduced Price)
- Homeowner C: Sold
- Homeowner D: Pending
- Homeowner E: $209,000 (New Listing)
Henry went from being competitive to being th highest home for sale in that price range. If all are comparable homes which would your buyers look at last if at all? Good agents are getting their sellers to reduce their prices as needed or they are canceling the listings to concentrate on those who really are looking to sell. CMA's every 30 days is a must. When talking to your sellers let them know in advance that they can expect to hear from you regularly regarding what is happening in the market and how it relates to them.
PS: By the way Henry (not his real name) did begin lowering his price and has sold.
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