It's The Price, Stupid!

OK, so maybe that wasn't the name of the training I attended today, but it might as well have been because I think that's pretty much the main point that all of us got when it was over.  Our training was taught by Linda McKissack, whose team usually sells around 300 homes a year, so I think she certainly knows what she's talking about. 

One of the first things she said today that really got my attention was "Our price is good, but we're just not getting any showings."  Ha!  This caught my attention because I know I've said this myself.  Her point was that in this market, if we're not getting showings, our price is wrong.  Period.

In a seller's market, it means the supply cannot keep up with the demand.  Put whatever price you want on your home because after all, in a seller's market, it's not as much about price as it is "Location.  Location.  Location."

Well guess what?  In case you've been hiding under a rock, we're in a buyer's market right now...NOT a seller's market!  And a buyer's market is exactly the opposite of a seller's market.  It means we have an over supply for the amount of demand.  We have more sellers than we do buyers!

When this happens, your house has become a commodity.  And like any other commodity, it's all about the price.  Here's a great analogy . . . "If you bought stock last year and that stock was worth $49 per share and today you need to sell that same stock and it is now worth $25 per share, what could we sell it at?  Twenty-five is right."

How do you know if your home is over priced for the market?  Well here's what the National Association of Realtors has to say: 

• If you've had 10 or more showings with no offers, you're at least 5% over priced
• If you've been on the market 2-3 weeks and you've had no showings, you're at least 10% over priced

If you're a homeowner thinking of selling, this may not be the news you were hoping for, but I believe Dianna Kokoszka said it best when she said, "If I don't tell my sellers the truth, it's like I'm taking money from their bank accounts." 

We didn't create this market, but as Realtors, our job is to properly communicate the numbers as best as possible so our sellers can make the decisions that are best for them.

This information was originally published at www.iShopGreenwood.com