get them in the front door

By
Real Estate Agent with Re/Max 10 New Lenox Illinois

Staging a home to perfection can certainly get buyers’ attention, but pricing the home to sell is what often will get them in the front door, housing experts say.

With home values dropping across the country, a few sellers are still struggling to come to terms that their home may not be worth what they previously thought. About 77 percent of home owners believe their home is worth more than the recommended listing price, according to real estate professionals surveyed in the HomeGain National Home Values Survey. Yet, about 67 percent of home buyers say home values are still overpriced.

Nearby foreclosures can certainly influence a seller’s asking price. Foreclosures in a community can actually reduce nearby property values, on average, by $20,300 per household, according to research by the Center for Responsible Lending.

But many sellers can’t accept that their home’s value may be lower because of the houses down the street.

The sellers who tend to be overpricing their homes the most are the ones who bought post-housing bubble too, according to a study earlier this summer by Zillow.

Zillow found that home sellers who purchased their home in 2007 or later are overpricing their homes by an average of 14.1 percent. On the other hand, sellers who purchased their homes between 2002 and 2006 (pre-housing bubble) tend to price their homes about 9.3 percent above market value, according to the Zillow study.

“Post-bubble buyers seem to believe they escaped the worst of the housing recession, as evidenced by how they price their homes today,” says Stan Humphries, Zillow’s chief economist. “But 2006 was just the beginning of the housing recession, and it is continuing in earnest to this day. That means that even people who bought after the bubble burst need to break out the pencil and paper and do serious research into what has happened in their market since they first bought their home, whether it was four years ago or six months ago. Overpricing homes causes them to stagnate on the market and keeps inventory from decreasing–not a desirable outcome for either the sellers or the market as a whole.”

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Ambassador
4,301,228
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Dale, price is surely a MAJOR factor to get THEM in the door - but pictures are worh thousands of dollars too!

Oct 28, 2011 04:16 PM #1
Rainmaker
317,337
Liz Flint
Century 21 Hardee-Team Realty - Houston, TX
Houston\Tomball Realtor (832)816-8066

Hi Dale, I agree with Praful that price is price is important, but they won't even come in the house if the real estate agent doesn't pick the house to send to them.

Oct 28, 2011 04:23 PM #2
Rainmaker
233,475
Dale Taylor
Re/Max 10 New Lenox Illinois - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

Great points Praful and Liz.  Thanks

Oct 28, 2011 04:25 PM #3
Rainer
107,937
Ted J. Macy
Top Agents Atlanta Metro - Milton, GA

I agree with Praful, people really sort through houses by what the pictures on the internet look like these days, they figure they can negiotiate the price if they like the pictures, of course it has to be at least in range, that is where pricing really matters

Oct 28, 2011 04:49 PM #4
Rainmaker
1,126,544
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Dale - good post.  The right presentation is important, but if the price is wrong, buyers won't even bother to look at it.  Thanks for reminding everyone it is a complete package that sells: price + presentation!

Oct 28, 2011 06:45 PM #5
Anonymous
dale taylor

comments appreciated ted

Oct 28, 2011 07:27 PM #6
Rainmaker
309,408
Carol-Ann Palmieri
RE/MAX Executive Realty, Al and Cal Realty Group - Franklin, MA
"Cal" the Real Estate Gal

Hi Dale.   Presentation is important to get the most money, but at the end of the day it is all about price.   Zillow's statistics are interesting, but not too surprising.   Thanks for the info.

Oct 29, 2011 12:19 AM #7
Rainmaker
233,475
Dale Taylor
Re/Max 10 New Lenox Illinois - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

comment appreciated al

Oct 29, 2011 04:40 AM #8
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Rainmaker
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Dale Taylor

Realtor = Chicago Illinois Homes Townhomes Condos
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