Home Selling in 01002>Question Details

Ikepes, Home Seller in 01002

I have my home on the market. I have been advised by my realtor to lower my price, but it seems that prices are increasing in my zip code. Also, I

Asked by Ikepes, 01002 Tue Mar 30, 2010

anticipate that spring sale season will push prices up. Is this a good time to lower prices generally?

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The spring season. The promise of new things. What will happen in spring is 500 additional homes will be placed on the market at the same time with the peak being the last week of May. These will be new listings. Fresh listings. They will generate new excitement. The may create the opposite effect on your home than you expect. ---------------At the time you and your REALTOR were sitting at the dining room table discussing selling strategies, you were presented with several option and the logic behind them. Your response to these suggestions revealed if you are or are not agile in the process of selling your home. During that discussion, it was shared with you that many buyers LOOK for an indication of willingness from the home seller. If this is not communicated during their visit or in the material made available, the buyer is left to simply monitor your home. They often lurk, waiting for a 'willingness to sell' that is reflected in a price adjustment. These buyers put your home on a electronic watch. It is a GOOD strategy to schedule periodic price adjustments to trigger the notification systems to these buyers.--------------I do not know the strategy you and your REALTOR agreed upon, but strategic price adjustments can and should be an integral component.
0 votes Thank Flag Link Sat Feb 8, 2014
Your Realtor should have definitive reason for lower price. I would trust they are working in your best interest to get a result. They are the professionals. Prices are trending upwards but in all markets this can be very localized. Some areas fetch higher prices within a zip code. your Realtor should guide you on this topic. You can ask them for some analysis to support lowering price. you might feel better knowing why.
Best of Luck
0 votes Thank Flag Link Sat Feb 8, 2014
Hi,

I would say not knowing the time your home is on the market to do the following. I would have your realtor do another market analysis and I would go further and go see your competition. After you have seen what has sold and what your competition is then you should be able to make a informative decision. One thing I would advise you, becareful on your home becoming a stale property. I have had past clients that have held out on to "their" price only to get less than what they would of received had they listened to advice of being competitive. Put yourself in a buyers shoes. try to think how they would think. If you seen a home that was high priced and on the market for ever, would you want to run right out and see it? or make a good offer? most of my buyers when they see a home that has been on forever assume that there is something wrong with the home and it doesn't give them the urgency as a new home would. This could give you a disadvantage with homes that have less days on the market. The other part of this is that in spring the homes do sell but I do not think the price will soar to make a huge difference. Lets say your home could be $20k over in the current market and a buyer could come along and offer you what your looking for BUT when the bank appraiser comes out and sees that other homes similar to yours with in close range have sold for less, your home may not appraise out and this could end in wasted time for all involved because at that point you might have to drop the price anyways and the buyer has the opportunity to be released from contract under the mortgage contingency. All that time your home has been off the market only to start over. Bottom line is your home is worth what ever the market dictates. If your showings are low or none at all that might tell you something. Good luck!
0 votes Thank Flag Link Wed Mar 31, 2010
Not knowing how long you've been on the market, if any offers have come in nor the amount of showing traffic, etc.-- You need to review comps--recently sold similar properties in the immediate area, and make a determination--consider, a home is worth what someone is willing to pay for it; it doesn’t matter what the seller needs or potential buyers can afford to spend, market conditions do matter. If you have been on the market for some time a price adjustment may be in order; your agent can best advise.
0 votes Thank Flag Link Tue Mar 30, 2010
I can't speak to your specific area, however, you should KNOW what the prices in your zip code are doing. How do the recent sold comparables compare to your house in price?
How about your competition? The houses that are similar to yours in your price range that buyers compare to yours. Are you in line with these houses? You need to look at things the way buyers do.
List prices should be lowered when buyers are generally paying less for properties.
I have no idea how long your house has been on the market but if you have received no offers after a few weeks on the market and you know your house has no other issues- shows well, is decluttered, no location issues, etc.- then you need to start looking at price.
Painful reality these days.
0 votes Thank Flag Link Tue Mar 30, 2010
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