I am 3 hrs north of Indy in the heart of the RV industry meltdown and you would think with over 12% (and still climbing) unemployment, things would be dismal. They are slower than they were 3 yrs ago, but right now I have more buyers working actively with me than I have had in the last 12 months. I think some of the "fence sitters" are starting to move, with the low mortgage rates and the 8% price drops we have experienced over the last couple of years. 2009 is still going to be a slow climb upwards, but I think the motion is heading in the right direction. I would advise your client to have their listing agent run 60 day comps on the solds in their area and price accordingly, just a tad under what they have sold for and they should be on their way to TX soon, provided there are no other "flaws" like poor location or poor physical condition of the property.
The old saying that real estate is local has perhaps never been more true. As disparities between neighborhoods and communities become more divergent, rifts in the local real estate landscape become even more delineated. So while one side of a township might be doing OK, the other side might not be. That could be a factor of schools, property tax assessments, localized crime or a dozen other criteria important to Buyers.
Many Sellers in this market have found themselves in the position of chasing the market downwards, trying to catch up to valuation drops. If the Seller started out $10,000 too high, a reduction 90 days later might not make up for the fact that the market for that home ha actually dropped $15,000 in those 90 days. My recommendation to Sellers is fairly universal: drop it till it hurts, then drop it 5% more. You MIGHT then be low enough. And don't worry about underpricing. We'll have multiple offers if that happens.
Ultimately, a well-priced home in move-in condition with decent contingency terms will sell in any market.
Principal Broker, REALTORÂ®
MacDuff Realty Group