Pricing your home in the Wilmington area… Know the likelihood of your listing selling…

Pricing... Know the likelihood of your listing selling...

Considering the current market, pricing is of the utmost importance. Conversely, it's harder and harder to find good comparables as the average days on market continues to rise. This is why for many of my clients, I tell them that your price should be a product of your motivation. Perhaps, 20% comparables, 80% motivation. Obviously you need a starting point, so you would start by analyzing the comps. Comps in terms of an appraiser would only be measured by sold properties. However, it's not uncommon for me to see an equal active listing priced less than the last sold listing. If this is the case, is the sold listing the better comp? On the other hand, I also have sellers who only see the active listings that are all 15% overpriced, and refuses to consider the sold comps. Also complicating the situation, it's not uncommon for a listing to sell for 20% off on our beaches at the moment, so if a home is listed for 300K which is about the average, it could easily sell for 60K less. I have had sellers cling to a pending listing only to find it was overpriced. In my earlier post I discussed who should consider themselves a motivated seller, or not, in this post I will discuss how you should price it if you are a motivated seller. In Wilmington, on average, only 40% of homes have been selling. Furthermore, the average days on market in April 08 were 109. This is supposed to be the spring market. That will go back around 180 or more as the year progresses. As you can see, even if you are priced in line with your comparables, your chances of selling are less than half. If you are the highest priced home in your community, the odds are seriously against you. On Carolina Beach the odds of a listing selling are 22%, and not much better on Kure Beach, and Wrightsville Beach. Even if you are the lowest priced home in the neighborhood, if your home isn't most desirable, there is a good chance it won't sell. So if you are motivated, it basically boils down to this. If your home is truly nicer than your neighbors (Remember, a wrong opinion could mean your home not selling), you have a strong chance of selling if you are the lowest priced home in the neighborhood. Otherwise, there simply are very few serious buyers out right now, and if you price too high, or hold out for a higher price, you may be waiting until next year, and probably will be selling for about 5% less. I would say 90% of foreclosures are happening because sellers fail to account for the sluggishness we are feeling right now, until it is too late. If you are truly motivated, price it accordingly. This is almost definitely a recession, and sales could be down for 2 years easily. Plan for the future. If you set a lowest price, make sure it truly is your lowest price, because you may be holding on for a while.

My name is Ralph "The House" Hunter, with Victory Real Estate. I have been selling real estate in the Wilmington area for 5 years now. I have experienced many different markets, and enjoy watching things play out. I have lived in Wilmington my entire life, and really love being directly invloved in it's growth, and development. I plan to build my firm into a powerful local brand focused on real estate advice and service, rather than sales.

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