Pricing Real Estate
It stands to reason, if you drop the price of real estate after little to no activity, you just may see activity pick up. But is this necessarily the right thing to do? If you have done your homework and priced the property appropriately to begin with, then within a specified time frame the property should sell. Right? The time frame is the key words here. It may take more time than the seller wants. Result - you lose the listing and someone else gets it and the sale as the time draws closer to the real buyer. This seems to be the risk we take as real estate agents, but should we drop the price just to get the sale? It would seem fair enough if it is suggested by the seller, but for the agent to suggest it seems to me to be a lack of preparedness to begin with. One homeowner and potential client asked me, "Doesn't it look bad when people see where you have dropped the price sometimes two or three times?" My answer was that it doesn't make things look good..... They are now gun shy about listing again due to this exposure from several different agents and seem to think they can sell it themselves. They probably will in time. Another contributing factor is the reality of how long it will take to sell the property. There are quite a few sellers out there that think they are working with stock market type situations. In today, out tomorrow. Real estate is a long term investment. TV shows that educate people how to "flip a house" are somewhat misleading and seem to create an unrealistic viewpoints. With the shear number of inventory alone, the buyers have a full store to choose from - why not take your time. "Price will probably fall in a few weeks anyway." I may be right, and I may be wrong. But do you get my point?
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