Don’t miss the seller’s market
There is little doubt sellers want to sell their home for the highest possible price. Who could blame them? But, do they always price their house right? Will their asking price get the number of showings required to get an offer? I know from my 18 years of experience most sellers will get an opinion of price from various sources before they call me. Often, a seller will quote me estimated values of their home from sources such as Zillow, neighbors, other Realtors®, or their cousin Vinny who has a real estate license in a completely different market on the other side of the country. The truth is, your home is worth what the market says it is worth. Period. The end. Let me elaborate on what the market is, though. Part of what makes up the market is the buyers. But, digging deeper you'll find another part of the market most people, agents included, do not account for in pricing a home. The other part of the market is "affordability". The concept of affordability is not only about income and down payment. It is also about what a buyer is “willing” to buy for a given price. In seller’s markets home prices rise. As home prices continue to rise what is acceptable to buyers eventually starts to decrease. Prices will increase to a point where buyers stop looking because the type, or condition, of the homes in their price range becomes unacceptable. Basically, they say, “I ain’t paying that much for that house. I’ll wait.” The buyers leave the market and, before you know it, prices start to fall as homes sit on the market longer and longer. The real estate market pendulum starts to swing in the opposite direction. This is a very subtle swing and most people are not aware the market is shifting. Unless they follow sales data religiously they continue believe prices are increasing and, as a result, ask too much for their home in a real estate market that is either leveling off, or in decline.
To get your home sold understanding the current market trends is very important in pricing your home correctly. For the best success when selling your home, it would be wise to work with an agent that stays on top of the market in the neighborhood where your home is located.