I hear that a lot.
Let's talk a little about pricing strategies.
Everyone knows that if one wants to sell something fast, drop the price enough and the buyers will come out of the wood work. If, as an example, one has a house that might normally sell for $500,000, and they price it at $350,000, it is likely that an investor will scoop it up fast.
But, the converse is not true. It is a common (borderline) though, that if we want more money, all we have to do is wait a little longer. And, the reason it is a (borderline) myth is because it is a little true. Let's look at a few possibilities (keep in mind these are hypotheticals and are only for illustrative purposes):
- At $350,000, the house may sell inside of a couple of days. (we covered this one above).
- At $400,000, it would sell withing a week or so.
- At $450,000, it should go away in a month or two.
- At $500,000, assuming that it is a really fair price, it might sell in a month or two... or six... or not at all.
- At $550,000, it would have about a 2% chance of selling at all.
Of course, we are talking about homes and even if they are the same, they are never the same. A buyer may wander along and snap up a property for too much money, or one may never materialize to grab a bargain.
But, the point remains that in the current market (February used as an example) six times as many homes were newly listed as were sold. In January, it was 10 times as many newly listed as sold.
Homes that are even a little over priced are not likely to sell.
And what is worse, that price is a vaporous and moving target. Over the last year, it was decreasing... that means that if you had a $500,000 home a year ago, and tried to push the price and it didn't sell, you may only have a $450,000 home now. So, trying to get that extra bit of profit from the home might have cost a lot more than what you might have made.
I have watched a lot of properties that investors I work with have put offers on that were refused. In many cases, the property sold months later for less.
"I'll wait for MY price."
I think that the market is turning... but I can't tell you how long it is going to take for values to return to what they were a couple of years ago. At some point, you'll be able to get almost any price for any property... Or maybe your kids will get that price (I had a conversation with a would be seller that wanted at least 50% above market for his property... I don't see that happening for a decade or two).
If you have the option to ride it out, that's great. If not, we can try to develop a strategy that will work with your time frame and needs.
"But that other agent said we'll get OUR price."
Deciding which agent to work with shouldn't be about finding the one that agrees to list at whatever price you want... or the highest price. It should be about finding the agent that will be honest with you, market the property properly, and deliver on the promises. If you pick someone based upon the price they promise to fetch for your home, have a plan B.
I look forward to hearing from you.
