Listing your home soon? Here's a couple of things you should know about 'Price'.
There’s actually a few factors that are embroiled together – Price, condition, location. Together all three 
will actually make your home either sell or be rejected by prospective buyers.
Obviously in this market and the elevated inventory for Elgin IL Homes you have to be ‘dead on’ with your homes price. Too high and no one will take your home seriously and it will be passed over. Too low? Well that really doesn’t happen too often except in distress sales, foreclosures and the like. A fair price – what a seller is willing to accept and a buyer is willing to pay. That’s what we normally strive for!
When an agent puts your home on the market, it has to be sold three times.
The first sale is to my peers, the other REALTORS® and buyers agents who are in the market everyday. They need to be excited about the price or they simply ignore the listing because it's often a waste of their time to show it to buyers who won't pay that price.
The second sale is to the buyer, and they compare your home to the others they're looking at in the marketplace comparing features and benefits that are important to them.
The third sale is to the appraiser at the buyers lender. Even if we're lucky enough to get a higher than market price from a buyer, the appraiser compares your home with past sales in the neighborhood and their appraisal usually hits right at the market price. It's a system of checks and balances that we have in the market.
If your home doesn't appraise, what will you do? Let's put yourself in the buyers shoes for a moment - if you bought a home (or anything for that matter) and the appraisal came in lower than what you paid, what would you do? How would you feel as a buyer? Cheated? Ripped off? Taken advantage of? What normally happens is the deal falls through and we begin the whole selling process all over again. Start again at square one, we’re back on the market!
The attached graph shows the Median List Prices and the Median Sold Prices for Elgin IL Homes. An interesting feature is the difference between the List Prices and the Sales Prices when the market downturn began. There was a definite 'disconnect' between what sellers wanted for their homes and what buyers were willing to pay. As the market progressed (an unfortunate looking ski slope) to today, we see that the prices are starting to converge upon each other. Does this mean that buyers and sellers have weathered the 'price chasm' together? I think so.
Both buyers and sellers of Elgin IL Homes are settling in with the market and taking advantage of the wonderfully low interest rates available. All I can do is present to you the market as it is 'today'. Present time, present moment.
Elgin IL Homes Market Snapsnot - June 2010
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