Properly pricing property has never been more important. In a falling market overpricing could cost a seller 10's of thousands of dollars. Over pricing is potentially more damaging than under pricing.
During every listing there will be the discussion of price. Every Realtor will come prepared with comparable sales reports. The property seller normally reviews these reports and looks to their Realtor for advice.
It's easy to start with an asking price that seems at the time to be a little high, because we can always come down if we need to. Right? In an up trending or flat market yes, maybe. But in a down trending market this is Dead Wrong!
In a downward trending market this strategy is costly. Our MLS is full of properties that have been on the market forever. The properties see regular price reductions but never seem to get to a price that's at or below market. The longer you wait the bigger the price cut must be to become competitive.
I wish I could predict a bottom but the best anyone can hope for is to look back in time and identify when the bottom happened. Until then the wisest approach is to do is to make a best effort to price a property at or below market quickly. Like pulling off a bandaide, you know it's gonna hurt so you may as well get it over quickly.
The market here in Southwest Florida feels like it is stabilizing. Sales volume is up and inventories are coming down, but sellers are still taking it on the chin.
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