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Is Price really the number one incentive to buy?

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Real Estate Agent with Naperville Glen Ellyn Lisle Plainfield Wheaton Illinois

Is Price really the No. 1 incentive to get people to look at your listing?

Sudies contuinue to show that when you price a home correctly right from the start you will get more showings and a higher  sellling price than if you priced your home above current market value just to see what happens.
 
The reality is:  When a home is priced too high, you are forced to  lower  the asking price and price reductions sometimes weekly, are a common accurance with some when selling a home today.  

Studies continue to show, once a property fails to sell at its debut price, the time it spends on the market can encourage buyers to be aggressive in negotiating and bring lower offers than average.  Price reductions continue to encourage  this aggressive bargaining."

If you are serious about selling, NOW is the time to adjust the price to whatever it takes to get the property sold. PRICE ALONG WITH AN AGGRESSIVE MARKETING PLAN. 

NO one knows where the market is going. Now is the time to price right and sell if you are ready to sell. If you're upside down (owe more on the home than it can sell for), but you can get out of it for $10,000 today, do you want to wait a year and risk getting out out for $20,000? That's what sellers need to think about. This is a selling time based on where the market is going and a buying time if you are ready to benefit from the low interest rates and great home buying opportunites.

No one wants to make these hard  decisions, so they do so with a long term plan involved.  Just remember, if your waiting for the market to "turn around" it may be a long road if your a seller. If you are a buyer NOW is the time to enjoy the benefits of home ownership at the right price. If your are going to be in your home for 7-10 years this is your time.

 

 

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                Tamara Schuster,Broker

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Comments(7)

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Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Well said!  Some people just insist on listing at a price they are told is too high and they shoot themself in the foot doing it.  The longer it sits on the market the more that buyers perceive "something must be wrong with it" and pass it by.

Feb 25, 2011 05:02 AM
Jackie - computer-training-atlanta.com
770.498.7333 - Atlanta, GA
Learn to leverage technology to get more done.

Tamara - Thanks for commenting on my blog. You are so right; you definitely make the case for pricing the house right the first time.

Feb 25, 2011 08:14 PM
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

Tamara, pricing is extremely important...not only when the property is first listed, but in a volatile market it's also just as important to stay informed about new closings as well as new listings that are in direct competition. I've seen distressed properties sell for 20% less within a matter of just a few months!

Leilani

Feb 27, 2011 07:56 PM
Tamara Schuster
Naperville Glen Ellyn Lisle Plainfield Wheaton Illinois - Naperville, IL
Realtor Broker - Naperville

Leilani, Thanks so much for your thoughts. Prices can change so quickly in this market. Last month I listed a townhome at a great price.  One month later based on new listings, homes under contract and recent closing prices the home needs to be reduced based on the current market. We owe it to our clients to be on top of the market and keep them informed. It is not always as you know, to tell your seller, especially when they are already coming to the closing with money. However the informed seller is a happy seller in the long run. 

Once in awhile I run into a stubborn client or one who does not want to believe the facts and I  understand how they feel but I let them know even if I could get them the price they wanted and felt they deserved in this market  Appraisers only go back 3 months today and they use the same numbers I just showed you so the chance of a closing would be tough. Surprisingly and gratefully I am finding more and more that y clients understand and are starting to follow the market more closely and understand.

Mar 06, 2011 03:50 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Tamara,

It is a tough pill to swallow. Imagine yourself i the Seller's shoes. There are so many plans for that money, that now may not even be there.

Not easy.

P.S. Are you Russian?

Mar 13, 2011 05:05 PM
Tamara Schuster
Naperville Glen Ellyn Lisle Plainfield Wheaton Illinois - Naperville, IL
Realtor Broker - Naperville

Hi Jon, I know it is so hard to be in the sellers shoes. I had to do a price adjustment conversation this weekend and the couple understood where I was coming from but is never easy conversation to have when they owe more than the house is worth.  I kept a positive attitude and they understand that they have to bring more to the closing than initially expected. 

Mar 14, 2011 12:59 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Tamara, I can only imagine a conversation like this. And it is different the moment when they decide to go with Short Sale. They get used to the idea that no money is coming their way, except the perks from the Short Sale Lender, if any...

Mar 14, 2011 04:20 PM