Sellers that choose to “chase the market” are likely to waste time and lose money.
Just read this great post by Richard Weisser from Newnan, GA. Its a great read for any real estate agent, especially in a declining market. We are lucky to have not suffered major declines in price locally, but we should always look at price trends when valuating our clients' property.
Sellers all share the same notion as to the value of their house. When I ask what they would like to net from the sale of their property, they always answer: “as much as I can get.”
And generally, they believe that the best way to achieve that goal is to start high to test the waters, and then consider price reductions as time goes on without receiving any offers.
However, in today’s market, there is a strong possibility that electing to use this strategy will ultimately lose money for the seller. It’s called “chasing the market,” and in a declining market it is more like a dog chasing its own tail.
As houses languish on the market, savvy buyers sense more and more desperation on behalf of the seller. There is nothing about these listings that would make a buyer want to offer anything near the list price.
My preference is to ask a seller what the “least” amount they can live with right from the get-go. If that amount is close to the true market value that I have researched, we are in business.
A properly price house immediately attracts serious buyers during the initial “new listing” phase. And if a house generates multiple offers within the first week or two, the seller is actually in a much stronger negotiating position.
And here’s the kicker: Pricing a house lower can actually net the seller more money in less time! Let’s all repeat that: Pricing a house lower can actually net the seller more money.
And a better bottom line is the net result of a successful sale!
All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
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