Ah, the million dollar question. This is one of the hardest things to do right now for most sellers. Let's face it, even the best Realtors are providing a very educated best guess at what the home may sell for given the circumstances of condition, motivation, terms of sale, and so forth. One of the hardest things to convey to sellers in our market today is that there is a chance that the home may not sell - at a price that they are willing to sell it for.
This is also where the Agent should really earn their compensation as well. My partner and I have had 4 of our listings go under contract at full price or at least within 98% in the first 3 months of this year, but at the same time we have a dozen others that are not selling - even at a reduced price.
Since this is what we get paid to do, I am not going to go into the full methodology that I do to try and narrow a price range down that I truly feel will meet the sellers' needs. I can, however, share one thing that I have been 'preaching' for about 6 months.
Even though each of us would like to increase the price of our home a little to try and make a few more dollars of profit, this can actually be the single most important reason that the home won't sell. Once you reduce a price in this market, you are almost guaranteeing that you are going to sell it for even less - if it will sell.
Secondly, if your home has a functional issue against it - location, lack of living space, functional obsolesence, overimprovement, etc - the market can be extremely brutal. There are simply too many homes for buyers to choose from around your home for them to purchase the home with 'issues'.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment