Finding the Right Sales Price Isn't Easy
In a volatile real estate market, knowing the right price for a home isn’t always clear, experts say. Scott Deaton says it is the most important element! Having to drop a home's sale price from its initial list price is common. On average, sellers reduce their list prices after about 2.5 months by 8 percent when a property hasn't sold yet, according to a report by Trulia.com. After making one price reduction, 35 percent of those sellers will make a second price cut too. Even homes without any obvious faults are undergoing price cuts, agents say. It is a buyer’s market in most of the country, and for your house to sell, it must be a value to the buyer. Scott Deaton’s spill on the situation: The majority of the problem with reduction in price is due to the listing agent. Most of them do not know how to properly price a home, for the current market, and instead rely on the seller to dictate what the list price is. Of course, every seller feels their house is worth more than any of the other houses in the neighborhood, but the fair market value of any home is what the buyer is willing to pay for it AND what the lender is willing to loan on it. Not either or! It is both! As an agent, I would love to sell the house for more money since I make more money for my family with a higher sales price. But as a professional, my job is to provide information and market knowledge to my clients. My job is to sell house, not just list them. If a seller hires me to market their home and sell it, then the home must be priced according the market…not what the seller ‘wants’ out of it, and sometimes, not for what is still owed on it. Finding that right price point is the most important piece of the puzzle.
No comments:
Post a Comment