Here in Chicago, we've had record rainfall over the past 24 hours - over 6.4 inches at O'Hare Airport. Flooding, and local rivers cresting.
But we're doing far better than those of you in Coastal Texas and areas nearby!
We're pulling for you, if you're in the area most directly affected by Hurricaine Ike! Be Safe!
Our Team has taken an old tool, and freshened it up for use in this over-inventoried market - with good success thus far! It's pre-authorized, written price reductions!
Today, it seems, even the most thought out Market Analysis is overstating a property's likely sales price. Without provision for the seller to reduce his price, on a scheduled basis, market time begins to increase, and the listed property quickly becomes just another stone in the wall of "unsold inventory" around here.
So we've begun to add a rider to our Listing Agreements. In advance, a minimum 5%, bracketed listing price decrease after three weeks on the market. Followed by similar decreases, in subsequent three-week intervals, until we get a realistic written offer on the property.
The only time we delay a price decrease is when an offer is in actual negotiation on the listing. Or, in some cases, if multi-showings suggest an offer is imminent within the next day or two, maximum.
Here's the teeth that makes this most workable!
If, at any time, the seller wants to keep his price at the previous level, or refuses to lower his price according to the schedule, we, as Listing Agents, retain the right to terminate the listing, take it temporarily off the market, or refer it to another Full-Service Real Estate Broker.
That way, we are not saddled with a non-salable listing simply because the seller is not being realistic.
When listings are not selling - even when all "evidence" suggests they should be - it is imperative to reduce the price, quickly, steadily. Otherwise, both the seller and the Listing Agent are wasting time.
And sometimes, it's better to cut bait than wait things out, doing nothing.
But having a scheduled series of listing price reductions, IN WRITING, at least provides a strategy for selling in a timely basis. And, often, it's a likely-successful strategy that you need.
Your thoughts?
DEAN & DEAN'S TEAM CHICAGO
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