Hello Everyone,
Received this from Trulia today...Good information!
With doomsayers declaring that the housing market is freefalling and the media prophesying catastrophe, many sellers have abandoned any thoughts of selling. They’ve figuratively gone back to bed and pulled the covers over their heads.
The pundits are wrong.
Most news is national and doesn’t reflect local trends. While houses may not be selling in other parts, they are definitely selling here in the San Francisco Bay Area. In fact, sales number are rapidly increasing due to the influx of REOs.
Bottom line: local home sales are not dead.
Heed some basic advice and you stand a very good chance of selling your home even in this current market. As has been mentioned in countless other blogs, home preparation is critical for selling quickly and for top dollar. Additionally, professional home staging has proven to increase your chances of a sale.
However, there is only one basic point that will ultimately determine whether or not you sell your home. The Pareto principle states that 80% of effects come from 20% of the causes. In the case of your home this is certainly true: 80% of selling your home comes from one factor alone:
Price.
No matter how much time, effort and finances you invest in your home (the 20%), if it’s not priced correctly (the 80%) it won’t sell. In this enlightened Internet age, savvy buyers are attuned to a home’s true market value like never before. As Realtors put increasing amounts of information and pictures on the web, buyers are visiting “virtual open houses” and making effective buying decisions without viewing a home in person.
Buyers may love a specific home, but if they perceive that the price is too high, they typically assume the seller is over-optimistic and will not come down to a reasonable price.
As a result, they will usually not even darken your door.
It’s the harsh reality of the current market. If priced too high, your home becomes “invisible” to buyers. And it does so from the very start. Buyers will go on to look at other homes instead of yours.
So how do you price your home to sell?
1. Have your Realtor prepare a REALISTIC CMA. (Comparative Market Analysis) Look at EVERYTHING on the market in your area, not just "the chosen few" that you want to see.
2. Run the trends from your area. Usually your local MLS will provide your Realtor with extensive data. Trulia.com is now also providing comprehensive market data and trends that are market specific.
3. Price AHEAD of the market. In a decreasing market, it must be priced BELOW the previous comparable sale or active listing.
Need to sell your home, but won’t get enough to pay off the loans? Then be honest with yourself and get a short sale specialist to help. Although aggressively setting the price is the highest obstacle sellers encounter when selling their home, in the end it is the one action that will reap the highest possible dividend:
A SALE!
Written by Carl Medford, Real Estate Professional in Fremont
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