Selling Your Home in a Buyers Market
Have you ever seen a dog chasing after a car? To a sadist, it might seem very funny.
No matter how fast the dog runs, it will never catch the car. The dog will never slow the car down. And, the dog will never bite a moving tire. What must the dog be thinking?
Today, many sellers are running after the market, the same way dogs chase cars.
What are these sellers thinking? Their home is the only castle for sale? Buyers will love the scent of their lilac bushes so much that it will temporarily cause them to forget the competition? Is it possible the smell of fresh baked bread or cookies will cause a buyer to pay yesterday's price in today's market?
We network with the most sucessful real estate agents from around the country on an ongoing basis. As market leaders, we share ideas and strategies that get results for our clients. In our opinion, it is imperative for a seller to price their property 7.5%-10% below previous market pricing in order to sell promptly and avoid being left in the long line of rejected homes that never sell. It will be a long wait for the inventory levels to decrease and return to a balanced market.
There is a proverb that says, "No matter how long you are traveling down the wrong road, when you figure it out, turn around. " Overpricing is a two-edge sword. If a property is receiving little activity, it is overpriced. Or, if a property is receiving adequate activity, but no offers; it is also overpriced. The latter problem is called 'always the bridesmaid, never the bride.'
By suggesting a seller has an overpriced property, the real estate agent runs the risk of being the messenger that gets shot. Courageous agents tell the truth. Cowardly agents hope the overpriced property will generate sign or ad calls while the seller reduces the price and stigmatizes the property with additional days on the market.
Real estate is a joint effort between the agent and the clients they represent. In order to achieve success, both parties must understand the market in the same way. This kind of shared knowledge comes from the agent always consulting the client honestly.
For sellers, the most important thing they can do is get into the percentage of homes that are selling and get there quickly! This can be done a few ways, but remember first that perceived value is just as important as tangible value. Perceived and tangible value can be created by a combination of proper marketing and competitive pricing.
Published by Pickard Group