The number of homes on the market is finally falling in much of the U.S. But supplies remain so ample that buyers generally can take their time according to an article published on July 29, 2008 in The Wall Street Journal.
Click here for the related article and a graph of housing inventory by metro area.
Tuesday, July 29, 2008
Friday, July 11, 2008
The Real Estate Pricing Conundrum
It seems during a slowing market, the last person to get the message that the house needs a lower price is the seller. After all, the seller has the most to “lose” by adjusting the price and it's a tough decision to let go of a dream of cashing out. The reality of the situation is that pricing the house properly from the beginning will almost always net the seller more money in their pocket.
Should you start out with a high listing price? Because of ever changing real estate market conditions, more sellers are competing for fewer buyers. So once again, it seems important to challenge a long-standing "myth" of real estate.
Many sellers still mistakenly believe they should "price it high". The initial listing price isn't that important because the price can always be adjusted down later. That is just a myth. It is simply NOT TRUE! That strategy is a recipe for home selling disaster.
If your house is overpriced, buyers are going to look at similar homes that are priced more attractively. Your listing will get passed over. A properly priced home gets attention. An overpriced home gets passed over. You may be thinking, "But I'm willing to negotiate!" Buyers aren't thinking in advance about how much you are willing to negotiate. They are comparing your asking price to other asking prices.
Plus, when your house is new on the market, you may not be willing to negotiate as much as you will later, once you've realized your error. Keep in mind that statistics prove that the longer a house sits on the market the less it will eventually sell for.
As time passes you could actually become desperate to sell. So what happens if you overprice in the beginning and get more realistic later? A price reduction later in the listing cycle often gets overlooked. You will have to lower the price to be more attractive than other homes on the market. So you could end up selling for less than if you had priced the home correctly in the first place.
Please email me at NLBeren@Gmail.com if you would like a FREE report on pricing your property to sell, "Realistic Pricing is Seller's Number One Job".
Should you start out with a high listing price? Because of ever changing real estate market conditions, more sellers are competing for fewer buyers. So once again, it seems important to challenge a long-standing "myth" of real estate.
Many sellers still mistakenly believe they should "price it high". The initial listing price isn't that important because the price can always be adjusted down later. That is just a myth. It is simply NOT TRUE! That strategy is a recipe for home selling disaster.
If your house is overpriced, buyers are going to look at similar homes that are priced more attractively. Your listing will get passed over. A properly priced home gets attention. An overpriced home gets passed over. You may be thinking, "But I'm willing to negotiate!" Buyers aren't thinking in advance about how much you are willing to negotiate. They are comparing your asking price to other asking prices.
Plus, when your house is new on the market, you may not be willing to negotiate as much as you will later, once you've realized your error. Keep in mind that statistics prove that the longer a house sits on the market the less it will eventually sell for.
As time passes you could actually become desperate to sell. So what happens if you overprice in the beginning and get more realistic later? A price reduction later in the listing cycle often gets overlooked. You will have to lower the price to be more attractive than other homes on the market. So you could end up selling for less than if you had priced the home correctly in the first place.
Please email me at NLBeren@Gmail.com if you would like a FREE report on pricing your property to sell, "Realistic Pricing is Seller's Number One Job".
Subscribe to:
Posts (Atom)
