Everyday we hear the stories about the problems in the housing market and the fact that we are entrenched in a buyer's market.However, somehow homeowners are still of the mindset that they should price their home high to allow room for negotiation, and maybe they will get the pie-in-the-sky asking price that they feel is possible if they somehow find the "right" buyer.
This can't be furthest from the truth. Why? Because of many reasons:
- We are now in a full-blown mortgage crisis.
- Lenders are closing their doors, and the ones that are remaining are tightening up their restrictions. Get your finances in order.
- Appraisals are getting tighter, which means that the home must appraise for the sales price or else someone is going to have to make up the difference in cash. (Even if the buyer doesn't need a full 80% loan, they are not going to want to pay more than what the banks are considering market value).
- The competition factor. The inventory is up at least 13-15 months compared to 2006.
- Homeowners need to understand they are now in a very competitive market.
- There are fewer buyers looking at more homes so, focus on listing your home competitively.
- "Super Hot" homes will still usually get accepted offers within 30 days.
- Today, consumers are very informed about home prices.
- They also know that most homes are going to drop in price- no urgency.
- Many consumers are playing the game of "chicken" with the sellers, waiting to see how low the price will actually go before making an offer, and then they feel that the sellers are desperate, so they want to make lowball offers.
- This hurts the homeowner-no offers.
- These same educated consumers are also tracking every new home.
- Eventually, a perfectly good home will sell below market value if it stays on the market long enough because it becomes "stale" and then people start thinking that there must be something wrong with it if it hasn't sold yet.
- The fact of the matter is, the person with the power is the homeowner who looks in the mirror each morning as they wake up in their home that isn't selling.
- Bottom line--If you price it right from the beginning; chances are it will sell within 30-45 days and you won't have to lower your price.
Here's some buyer tips:
