"In today’s market, the key for sellers is to price their home “at market” or even slightly below. You need to remember that buyers today are taking on the risk of a slowing mar-ket in their offering price.
If your home is not selling, you might wonder how long you should wait to reduce your list price. The answer to this is this simple: as soon as the market response (lots of showing, but no offers) tells you your price is too high.
In a transitional market, the “right” price can also be tricky. Buyers tend to be cautious and tentative about their home buying decisions. It is never wise to “test the mar-ket” in this kind of market environment.
An effective pricing strategy can be to undercut your competition. So, for example, if a neighboring home is listed at $535,000, bring yours in at under $535,000 at say $529,000.
Also consider psychological price barriers. Buyers perceive a huge difference between a home listed at $500,000 and one at $495,000.
Aggressive pricing or a quick price reduction can some-times stimulate multiple offers. We know of one home recently that was priced by the sellers $25,000 below any-one else. The result - 7 offers and it sold over listed price by $50,000.
So think carefully before you set your price. Remember, if you are purchasing another home you become a buyer, too, and will get the benefit of this market on that side of your transaction.
So price your home to sell. After all, that is why you put your home on the market in the first place!
Also, as a part of our Bay Area Concierge Services we offer expert real estate services to you, your friends and family. Visit us online at www.mmgproperties.com or call us at 408.399.1495."
Tuesday, May 11, 2010
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