Importance of Pricing your home
correctly from the Start
When a home first come on the market, is when agents and buyers
are most enthusiastic to find out what the home has to offer. Therefore, it is
very important to price the home correctly. A home that is priced at market
value or below will receive multiple showings and hopefully several offers. In
a buyer's market, a home that is over-priced will sit until a price reduction
takes place. (Buyers' market is more than six months of inventory based on
closed sales. Sellers' market is less than three months of inventory based on
closed sales.) In a seller's market, when inventory is low, properties may be
priced over market and sold at a higher value, However, other condition and
factors may apply.)
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A home that has been sitting on the market for an extended
period of time raises a red flag. What is an extended period of time? Let's say
that the average days on market in a particular subdivision is 30 days. If the
home that is for sale has been on the market for 90 days, that raises the red
flag "Why has it been sitting on the market so long?" "What is
the problem?" When the home has been on the market longer than the average
days on market, buyers see this as an opportunity to make a lower offer.
There
real estate market has a rhythm all its own and it is very important that
Sellers know the nuances of the local market. Real Estate pricing is very
local. It's also important that the
Seller realizes that negotiating is not just about price, it is also about
terms.
Usually as a
home lingers on the market more
properties enter the market and now there are many properties for buyers to
choose from, all wanting a good deal. This is where the old adage “Your
first offer is your best offer” comes into play. There is a strong argument for
the basic principal of: Take the first good
offer and work with it!
Janice Zaltman
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