Whats Price got to do with it???

By
Real Estate Agent with Spin Realty

In a normal market, price and location get the attention of lookers for homes for sale.  Lately it seems that price has been the over-riding factor in getting buyers to even take a look at listings.  The idea of putting a high price and negotiating down is risky and you might not get buyers to even take a look.   But if you price the house right to begin with you might find that you have multiple offers quick.   The following examples show exactly what I mean.

As I was showing a house two weeks ago and went back to the office to do some research on this property, since my client showed a lot of interest in it, I emailed the listing agent wanting to get a copy of the property disclosures and she emailed me back with " didn't you know we have a contract on this property, in fact we had two buyers bidding against each other"  All this happened since the price had been lowered.  I had another condo become a bidding war once the price was lowered to what the market would bear.  I thought about this yesterday as I was showing a house to my client.  I mentioned it to Him that even though the house was newly listed, less than 6 days old, that the price was on target and that it might not last long.  Well as I was in my office today I noticed that another agent in the office had a print out of the exact house that I had just shown the night before and said that he had a client who thought they might be interested in it. 

The point of this blog is that it is crucial now than ever to have an accurate price for the properties we are trying to help sell.  With so much inventory on the market buyers aren't going to waste time looking at properties that are perceived to be too high.  At least that is what I am seeing in the Knoxville Market.  

If you want to sell your house in today's market be sure that you use a Real Estate Professional that understands todays market and knows how to price the house right.  If you are thinking about selling your home in the Greater Knoxville market and you are not now working with an agent please consider talking with me about your house.  And if you are looking for a home in this buyers market contact me I know what homes should be selling at and can assist you to make your dream house become your dream home.

Posted by

"Finding a house that you can call Home"

Greg Reynolds, Affiliate Broker, with Envirian Greater Knoxville Fine Homes in Knoxville TN.

Office #865-675-3788 - Mobile #865-388-2759 - www.Knoxville-Fine-Homes.com

Comments (5)

Sarah, John Rummage
Benchmark Realty LLC, Nashville TN 615.516.5233 - Nashville, TN
Love Being Realtors® in the Nashville TN Area!

Exactly right, Greg. A good price will sell it. Problem is, a lot of times the mortgage is higher than a good selling price would be. That is a problem.

But I have seen sellers with NO mortgage on the property still hold out for more money when the market is way lower than where they think it is.

Sarah
www.NashvilleRTeam.com

Sep 02, 2010 09:56 AM
Greg Reynolds
Spin Realty - Knoxville, TN

Thanks for your input Sarah.  Have you all made it through the flood ok??

Sep 02, 2010 09:57 AM
Candy Miles-Crocker
Online Real Estate Agent Training - Chevy Chase, DC
Realtor - Real-Life Real Estate Training

Greg, I think it is always important to get the price right...regardless of the market.  Today's buyer does quite a bit of research before they even call us.  They know the sold prices of the properties where they are interested in making a purchase.  If my client is interested in a property the comps show is overpriced I strongly encourage them to write an offer at the price they are willing to pay.  You would be surprised how often this strategy works, plus, they don't have any competition because other agents and buyers simply don't write.

Sep 02, 2010 09:59 AM
Greg Reynolds
Spin Realty - Knoxville, TN

Candy,  that is very true.  I guess what I was trying to show was that we have buyers wanting to buy but they are very picky and how quickly some of these properties have moved once the price was lowered to where it should be.  And in most cases it's not the fault of the listing agent, they have tried to get the price right but people are not rational when it comes to their personal homes.   But I have seen, a few times, sellers shopping around for listing agents who would bring them a CMA that matched their inflated expectations.  Even if it is 4 or 5 to one, with the 4 or 5 having the correct price, they would choose the agent who brought the higher CMA.

Sep 02, 2010 10:12 AM
Darren Revell
Keller Williams Realty Temecula Valley - Temecula, CA

Pricing is key... amazing the difference, even in a slow market, if a property is priced where it should be, it will sell.... thanks for the post..

Sep 02, 2010 10:22 AM