Getting a property priced right is 90% of the marketing efforts of a successful real estate agent.
There is no amount of money an agent can spend on an over-priced property that can induce an educated home buyer to waste their precious time looking at a home that is way over priced for the location, condition or neighborhood.
Please believe me, today's buyers are doing their homework. They are reading about real estate markets, values and have more power that ever before,thanks to sites like this one, Zillow and the Internet in general. They are reading blogs, constantly hearing news reports and becoming educated before they make one of life's biggest purchasing decisions
The past three buyers I have had used me to help them narrow down their internet choices. They had a shopping list, I provided access and guidance. They had been shopping online for months.
We are in a declining market which means home values are continuing to drop.
At the same time we are in a protracted "buyer's market", which means supply is more that demand, an economic in-balance.
Both of these situations mean..lower prices.
If you need to sell do you want to hear the real odds of selling your home and what it will take? Perhaps you want the get the "rose colored glasses" price that probably will not work, but that's o.k., because "we can always come down". Time is money and if it's not priced right today, you probably will not get many showings if any. You have to have showings to generate offers.
For more of my thoughts on the current market, selling your home today and the tried and true CMA, click the link below and visit my new site with both Neuse River area MLS search and Crystal Coast MLS listings you can view 24/7.
http://www.homerrayhomes.com/?p=2350
Hi Homer, Thanks for the post and many good comments from the group. Today's market does bring a new set of challenges for both buyer's and seller's and their respective agents. I also use a line/script similar to Bryant #11 to shift my seller's attention off "the value" of their home and onto what's it going to take to get the job done but letting them that the market has lots and lots of "fairly priced homes - homes priced at market value" and they're not necessarily selling. Market value (a "fair" asking price) is not good enough. Buyer's are looking for great (not fair) deals.
Michael..good add on..
If it's a fixer upper, take what it will cost and add another 1/3 to reduce the price. Not many people have timeor money for a "project".
If it's a bow wower, you have to get down....
Hi Homer, its all about pricing it right especially in a declining market, you do not want to chase it down. I like Broker Bryant's line about what it will take to sell.
Homer:
Our market is stable but buyers are still picky about condition and set on taking 10% of any home. It is a difficult situation.
Evelyn
I agree it's difficult..
We have tons of homes to choose from and prices seem to be dropping even more so buyers think" I'll wait, there is no reson to hurry".
Thanks for the insight
#11 Bryant So true..thanks for checking in
Thanks for your short sale material too!
#10 The principle of substitution is really at work in a buyers market..tons of homes... some very similar, whose has the best price? Right?
Thanks for your thoughts
#13 Mike,
I've done it myself and always want to kick myself as I worry because it did not get showings, offers or sold..while I spend time and money trying to make to happen. If I could only learn and "sin no more."
Thanks for commenting
#39 Adam you are right, Denial is a powerful thing, but it will not help us sell an overpriced home.
I have taken overpriced listings and made their problem, my problem too.
Thanks
#29 The Somers.
Well said...., when I hear those comments I want to get up from the kitchen table and go home. It is the death bell ringing when they say "we're not in a hurry, we don't have to sell, I will not give it away."
Run..
Thanks for your honesty
Homer, I too understand, I know that really it is all about price, condition and location. I am wrestling with this as we speak and know that I will talk with my sellers regarding their bottom line on selling price. They want to move and are ready, and struggle with the price. They are not adamant about the price it is now, just about how much they will move it down in our market. The comps agree with the price range it is in, HOWEVER, the big word, is that no offers in the offing and not a lot of showings. So, too high. It is in the mid upper price range just under a million so a little more difficult but boy do I understand. Thanks for a good blog.
I have a friend who is moving out of town and selling their home. I suggested he pay for an appraisal up-front, and not waste time trying to sell for what he "thinks" it is worth. The only other house in his neighborhood for sale on the MLS has been on the market for 316 days! I wonder what the problem is?
I had a pre listing apprasial recently help get my deal done. The apprasier on the purchasing side for the bank and buyers got a stamped/sealed appraisal, which was much better than "my comps". We got the deal done...
I think that is a good investment for a home seller today!
Nothing is more powerful for a real estate professional than the ability to arrive at an accurate price—a skill, for many, honed through years of experience.
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