In this very price driven market, no longer are buyers letting their emotions interfere when they decide to buy a home — they’re out there looking for deals! Most listing agents feel, “Many sellers whose homes are sitting on the market without a buyer in sight had unrealistic expectations from the start.” Most sellers don’t want to price their properties where they need to be to result in a completed sale of their home.
How can sellers tell if their homes are overpriced? Look for the following signs:
Not Enough Showings
A home is likely overpriced if it doesn’t get any showings in the first couple of weeks it’s on the market. Even more proof a price cut is needed: Buyers and /or Agents are interested enough to call the listing agent for information on the home but still aren’t scheduling showings.
Seasoned Agents feel, if a home doesn’t make a buyer’s “showing cut,” and people don’t think it’s worth the time, hassle or gas to deserve a look, it’s likely overpriced. Worse yet, if other real estate professionals fail to bring their buyers to the property because of the list price… now you have the real estate community rejecting the asking price. If you can’t get people into your home, it’s highly unlikely that it will sell.
Some Showings, But Still No Contract, No Offers
Perhaps the number of showings isn’t a problem, you have great agents (most likely… The Smiths) that have brought a number of prospective Buyers through your home, and yet there still have been no offers. If you’re getting showings but not getting a contract, that means you’re still not quite low enough in your asking price. Most likely it means, you’re close, but there’s so much competition out there. You have to be priced with along the lines of the homes that ARE SELLING. Don’t make the mistake of wanting to stick at the current List Price with the homes that are also sitting there on the market and NOT SELLING. A basic guideline that real estate professionals use is: 10 showings and no offer or two consecutive weeks with no showings, you are most likely overpriced for the current market. This is true especially in this very competitive market.
Similar Homes Are Now Selling For Less
In markets where the median price keeps falling, it’s important to regularly monitor what homes are selling for. Your Real-estate agent should provide you with up-to-date information on the market to determine whether the home is still priced correctly. When you start off at the wrong number to begin with its called “chasing the market”. Sellers have no issue with increasing their list prices when the market is going up… However, when the market starts to soften they have difficult issues with adjusting their list prices. Historical data isn’t quite so powerful anymore. You have to look at what is selling now, and what it is selling for. That’s what your property is worth today. Forget about what things sold for 3 months or even 6 months ago… Take a look at what the last sale was, and that is what the new number will be. Don’t “chase the market down,” be priced right and get your house sold.
Repeated Negative Feedback
If buyers who do walk through the home have the same negative reactions to it, that could be another red flag that the price needs to be dropped. Buyer feedback, collected from your real-estate agent, may reveal what the other houses in the same price range have different from your listed property. Listen to your listing agent, they sell homes for a living. They do this everyday and have professional knowledge of what today’s Buyers like and dislike in their home search. Sellers are thinking from an emotional point of view, they are emotionally invested in their home and sometimes can’t see the deficiencies in the property because… lets face it, “IT’S THEIR HOME!” But once you put your home on the market it no longer is your home, it is inventory on the market. Be open to the cosmetic changes or areas that might need a remodel, that might be the one thing needed to attract buyers. To address the disparity, sellers can either make the needed remodel or cut the price. Buyers are extremely fussy these days and the least they see to “un-do” in a property the better position a seller will be in. Remember that the Buyers out there do not necessarily like all that you have done in your home. Don’t become sensative when you hear the feedback. Embrace it! Fix it! Then you can Sell it! Remember…You can sell anything anywhere. If the price is right it will sell.
You’ve Cut the Price, But Not By Enough
If a price cut is in order, don’t cut by small increments. Several smaller decreases could make a seller look desperate, but a larger decrease will generate more interest. A small price reduction is nothing in the grand scheme of things. Again, a big mistake is pricing the home too high from the start, real-estate agents say. Not only could overpricing lengthen the time on the market, but it could also cause the home to sell at a greater discount in the end. That’s because prospective buyers often get the impression that there’s something wrong with stale listings or, worse yet, buyers assume the seller is desperate and willing to accept a much lower price.
The Smiths say, “Your first three weeks are critical — you’ll have your most showings with the most potential, qualified buyers, those that are out there waiting for something that matches their needs to come on the market. Don’t blow it by overpricing.”