But Jim, My home is worth much more than that! Â A TRUE Story!
When I meet with people to list their homes they usually have some idea of what their home is worth.Â Sometimes they are pretty close and other times they are way off.Â Â I think it is very important to list your home at the RIGHT price from the START.Â I have a very good example of why I think this is so important.
Way back in the old days of Stanislaus County Real Estate, back in early 2008 I had a listing appointment with a couple here in Turlock.Â They had a little ranchette out in the country.Â The property was just under 2 acres and had two homes on it.Â Â One home was a 2 bedroom 2 bath and the other home was a 3 bedroom 1 bath.Â Both homes were in good condition but nothing special.Â Â The amount of land was too small to actually be a working ranch so there was not a lot of value in the land.
My comps showed the property to be worth somewhere in the low $700,000's.Â This was pretty much at the peak of the market although by then we were staring to see some foreclosures.Â Now the owners were sure the property was worth something closer to $800,000.Â Even with me showing them the comps they were not convinced.Â Â I told them that I would not list the property for that much as I was pretty sure it would not sell.Â I thanked them for their time and told them that I was sure that if they tried hard enough they could find someone to list it for them at $800,000.Â
Sure enough a couple of months later the property popped up on the MLS listed with an out of town agent at just under $800,000. It stayed on the market for 66 days then the listing was canceled.Â Shortly thereafter it popped up on the market again now listed at just under $750,000 with a new agent. Â It stayed onÂ the market for 217 days and was down to $640,000 by the time the listing expired. Â The end of 2008 saw property values starting to fall pretty quickly.
A few days later it came back on the market again, this time priced at $565,000.Â It stayed on the market at this price for 89 days. By now prices were really falling and the bank owned home market was taking over.Â A few days later the property came back on the market once again, and again with a new agent, the fourth one.Â Now it was listed at $455,000.Â It stayed on the market at that price for 181 days before expiring.Â Â The property was listed for a total of 553 days.Â
Now what would have happened if the property was listed at the RIGHT price from the beginning?Â While I can't say for sure, I'm guessing it would have sold for a lot more than the final asking price of $450,000.Â The sellers had come down nearly $350,000 off of their asking price while chasing down the market.Â Â Chasing the market is never a good idea.Â It's always best to price the property correctly from the start.
Now here is the worse part.Â Today while looking at the tax records I see that this property has a mortgage of just under $400,000.Â Most likely this property is no longer even worth that much.Â So by not pricing the property correctly from the beginning they would probably now have to do a Short Sale on this property.Â Now not only would they have to sell the home for probably less than half of what it was worth about 4 years ago, most likely they would not be able to buy another property for a while because of this one having to be a Stanislaus County Short Sale.Â
So if you are thinking about selling your Stanislaus County home give me a call for a free no obligation consultation.Â Now is a good time to be selling because of low inventory and lots of buyers.Â Call me, Jim Patton, today at 209-633-2839.
Jim Patton - Realtor, Short Sale Specialist, CDPE
Century 21 M&M and Associates
The author of this blog, Jim Patton, is a full time Realtor with Century 21 M&M and Associates.Â Jim is a Central California Short Sale Specialist who lists and successfully sells short sales throughout Stanislaus, Merced and San Joaquin counties. Call Jim Patton at 209-633-2839.
The views expressed herein are Jim Patton's personal views and do not reflect the views of Century 21M&M and Associates