What's the difference between tooth decay and price decay? Not much. Currently, in the Phoenix metro market repos and short sales are over 50% of the sales volume.
This aggressively priced inventory has eroded the median price, appraisal values, and expectations for serious sellers.
In order to prevent tooth decay, dentists suggest brushing and flossing frequently. In order to prevent price decay seasoned agents warn sellers to price their properties aggressively and implement staging suggestions immediately. Some sellers avoid sound dental hygiene and proper pricing strategies.
Recently, I went to my dentist for a six month check-up. He said a cracked tooth he had been watching for decades had begun to decay and it needed a crown. My thought was get it over fast. I knew, liked, and trusted this dentist. The price of his services was a cost of doing digestion.
Imagine if he said he could drill and complete the job in 15 minutes. Or, he could drill one millimeter each week for the next several months. It would be my choice to prolong the pain and agony, or act decisively and swiftly right now.
Many sellers make the incorrect choice by delaying the decision to lead the market with proper pricing. Instead some sellers timidly and slowly chase the market downward only to find the market has receded more than their price adjustment. Timid sellers experience price decay and equity erosion.
A new patient once asked my dentist what he needed to do to minimize his dental work. My dentist said to floss and brush his teeth daily. The patient replied, "All of them"? To which the dentist commented, "Only the ones you want to keep".
In order to avoid tooth decay, brush and floss every day and visit your dentist every six months. In order to avoid price decay, price aggressively and stage attractively before the house goes on the market.
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