The year is 2007. The Little Rock, and central Arkansas area has recently come from the best real estate market in its history. Now the national market has taken an extreme down turn and the average price of homes has actually gone down. The Central Arkansas market has remained much better than most markets. Even thought we have still seen a 3% increase in average price over all, many price ranges and segments of our market have large numbers of homes on the market and competition for buyers is intense. Days on the market have increased and it has become more of a buyers market. Pricing your property at a realistic value has become even more important in today's market.
The two most important questions you should be asking your real estate agent:
1. What have properties similar to mine sold for in the past three months?
Why only three months? Because the market is changing very quickly this year, and if we use comparables that are older than that if may represent an asking price that is too high in this current market.
2. Who is my competition in the marketplace?
By comparing listings that are in direct competition in your price, size range and general area, you will be able to price yours so it will not be rejected instantly.
Overpricing and soliciting "Offers" doesn't work. Many sellers feel they must list their property higher than the market analysis to they'll have "room to negotiate". While it is true that some buyers may want to make lowball offers, the buyer who really want your house will pay fair market price. Also buyers have access to a lot of the information we Realtors have access to, so they are better informed about the market value when they decide to make an offer on your home. And, last but not least, a well priced property can result in multiple offers, ever in this market, and that is the true test of market value.
What you want is the highest possible price in the shortest amount of time, and by incorporating some smart pricing strategies you will be able to help you accomplish your goal of selling at market price. A properly priced property that is well marketed will sell in any market.
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