I worked with buyers who got a great deal on a home because the seller did not cut the price soon enough. The seller thought the home was worth more than it was. They were pricing the home based on what they paid for it, and not based on current market conditions.
The key is to PRICE AHEAD of the MARKET – to AVOID CHASING it!
To help determine the price I take six months of active, pending, and sold units within a one-mile-radius to find out how many months of inventory are in that area.
I also research the prices of other homes available in the area as well as what has SOLD. I also like to preview homes to see what is selling, and what is not.
The truth is we may not be able to get sellers as high a price as last year, but if you don’t sell now you may be selling for even less next year.
If a seller wants to sell their home right now, they need to cut the price. If you are experiencing the following it is time to cut the price:
1. More than one real estate agent has given you feedback that your home is over priced, cut the price.
2. When you go to Broker Opens and Open Houses you notice sellers have reduced their prices, making your home overpriced, cut the price.
3. The same buyers have come through home two or three times you are not getting any offers, then cut the price.
4. All of the offers you have gotten are way under your list price, so cut your price.
5. The home has been on the market a long time, longer than the average CDOM, cut the price.
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