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Home sales when the price is right
The real estate market has changed. There are thousands of homes for sale, many are facing foreclosure. What should we do to get the wanted result for our clients?
Let’s compare a home’s value to a well-respected stock like IBM. If shares of IBM were for sale today for $100 per share would anyone pay a penny more? I doubt it. Why? Because the market dictates the value. The current market is controlled by the buyers.
What is it worth?
A home’s value is also dictated by the market. If there is more supply than demand, house prices must remain lower in order to sell them.
Sellers must separate their home from the pack by pricing. For instance, anyone would give 99 cents for a dollar, but try finding someone who will offer $1.01 for that same buck. The lesson? Homes must be priced aggressively to attract buyers. Buyers basically eliminate houses as they look at them - they buy the house that they have not eliminated.
Of course pricing, while vitally important, is not the sole means sellers must use to attract buyers. They also must consider additional methods to ensure that their home sells. Maintenance and condition make a difference. Buyers love updated houses where it is clear that the seller has totally prepared their house for sale.
The price of success
To help your client understand the current market, you should offer a professional evaluation showing current listings, sold comparables, and information about properties under contract and expired listings. Homes priced correctly don’t have to come down! It is likely that your seller can receive full price or better because of multiple offers presented on your home if it is priced correctly.
Because I priced them correctly, my last five listings have sold in less than 30 days in this market. My sellers were delighted, becasue most received full price or better. This was a direct result of aggressive pricing and realistic expectation of the market.
With nearly 30 years in the business, I have come to know that all markets run their cycle. The sellers’ market will return, and with it, house shortages and buyers settling for whatever home they can get at the time. The important thing to know and understand which market we are in and what it takes to be successful considering current conditions.
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