Annapolis Area Home Sellers: Are You Chasing the Cheese When You Should Be Catching a Wave?
March 10th, 2008 Categories: One Minute Realtor, Sellers
Two of our listings, in two very different prices ranges, have gone under contract in the last few weeks, one in 29 days, the other in 39. Aside from beating the average days on market handsomely, they had a couple of things in common: they were in great condition and showed beautifully.
And they were priced right on the money, where the market told us they should be.
Finding the perfect price for a home is part science, part intuition based on experience. To be sure, nobody in this business gets it right all the time.
Agents know, however, that even if we miss the bulls-eye, the market will soon tell us: by the number of showings, by feedback from other agents and their clients, by the number of days on market, and by recent sold comparables.
Sometimes The Market Speaks and The Seller Doesn’t Listen
For example: after 3 months on the market, Sally Realtor is convinced that her client’s home should be priced at $495,000 if the client really wants to sell. She tells
the seller that all the data and feedback point to that price, not the $550,00 where it’s currently listed.
The seller decides to reduce the price to $540,000 - in effect, using a carving knife when a chainsaw is required. After six additional months and three more price reductions, the home finally sells at $490,000. We call this “chasing the market” or “chasing the market down.” Or chasing the cheese.
The Best Way to Sell a Home in This Market is to Get a Step Ahead of the Cheese, Not Chase It
It’s like catching a wave: unless you’re out in front of it, you’ll always be paddling to try and catch up with where the buyers are.
Buyers are being very, very patient right now. They’re seeking value, above all, and examining their options under a magnifying glass.
It takes a lot more than the right price to sell a home. But, if you’re not priced right, nothing else matters. We can advertise your home on the front page of The Capital, The Washington Post and The Baltimore Sun daily for a month and it still wouldn’t help if the price is not in line with the market.
Great Article Ken…I am sending it to my client who keeps chasing the cheese!
Thank you, Jackie. What we always try to get sellers to realize is that it’s quicker, easier, and less painful for them if we hit the right price at the beginning, rather than keep shuffling timidly toward it for months on end. The reality of accurate pricing is sometimes a difficult pill to swallow, and our candor has kept us from getting some listings. But we believe in telling the truth, even if it hurts!