I have been an agent for over 15 years. In this time I have seen a lot of changes to the industry from financing, qualifying the buyer, buyer demands in home features, more protection in contracts for buyers and sellers, more disclosures…the list goes on. One change that has really impacted the industry is the internet. Buyers know value! Buyers do a lot of research before entering a home. Buyers are Smart!
Unfortunately, some sellers do not know this fact!
Have you ever thought of why some homes don’t sell?
The home is beautiful, nice location, good community. It is found on the internet in all the major search engines, plenty of pictures, virtual tour, flyers, sign, post card announcements, featured on agent bus tours etc…Still no buyers! Why could that be?
Lets go back in time to the listing appointment….
The agent arrives with a Comparable Market Analysis (CMA) with a value range between $230,000 - $238,000. The seller decides to list the home for $250,000.
Of course, the house does not sell. Meanwhile, the over priced home has helped the other homes in the neighborhood to sell - they look like bargains!
The house has been on the market for 6 months and kept in show ready condition for that buyer who will love the house regardless of the price. The seller is getting tired and now decides to drop the price. The new CMA shows the house is now worth $225,000. The seller relists the home for $240,000. It is possible this house will never sell. Chasing the market ends with many homes never selling. The house becomes "shop worn".
What is sad, is when the seller really decides to sell, the net will now be less. Add in the additional house payments made during the listing period, the equity lost due to the declining market by not pricing the home at market value and the frustration of keeping the home is show ready condition.
Remember the number one rule:
Your home is only worth what the market will bear.
If you are thinking of selling your home, please consider the following:
1. Review the comparables in your area and stay ahead of them
2. Keep in touch with the market. Know what is new on the market and what has just received offers or sold.
3. Pride of ownership is hard to get around. Don't think your house is worth more than it is. Know the facts.
4. What you need to net from a home sale does not constitute market value.
5. What you spent of a home does not constitute market value.
6. The upgrades you put in your home does not raise your home above market value.
7. Don't be guilty of chasing the market.
