Market Conditions - Is it a Buyer's Market or a Seller's Market?
A CMA often includes a Days on the Market (DOM) value for each comparable house sold. When real estate is booming and prices are rising, houses may sell in a few days. Conversely, when the market slows down, average DOM can run into many months. Your Realtor can tell you whether your area is currently in a buyer's market or a seller's market. In a seller's market, you can price a bit beyond what you really expect just to see what the reaction will be. In a buyer's market, if you really need to sell promptly, offer an attractive bargain price.
If You Price High, Set a Schedule for Lowering the Price
Some sellers list at the rock-bottom price they'd really take, because they hate bargaining. Others add on thousands to the estimated market value "just to see what happens." If you want to try that, and if you have the luxury of enough time to feel out the market, sit down with your Realtor and work out an advance schedule for lowering the price if need be. If there haven't been many prospects viewing your home after three weeks, you may need to lower your list price. If that doesn't bring any prospective buyers, you may need to lower your list price again. Plan on doing that regularly until you find a level that attracts buyers. Make a written schedule in advance, before emotion takes over and you're tempted to dig your heels in.
For more information on selling your home, keep checking my blog and my website at www.JeseSellsHomes.com.
Good tips. Since I am one day soon going to be a buyer again -- I like the market playing in my favor. The challenge is realtors represent the sellers.
I will use that on my next listing appointment. Thank You.
Jese, I just found your blog and it's full of so much good advice for clients! And I'd like to extend a belated welcome to Active Rain.
Jesse I know this is s very effective tool to use when sellers overprice thier propertys. You might want to conseder having a "buy down" clause written in the contract.
Kevin you are miss informed that realtors represent the sellers. There are agents who represent the seller and one who you hire that represents you and depending on your state can represent both parties. I agree with the schedule of reducing the price, but over pricing can also really hurt the home seller and even when the price does drop to where it needs to be the house has become stagnant.
Jese, some great tips, thanks for putting them out there.