There is a range of value to any home. The top of that range is "move in ready"--all upgrades are completed and the buyers don't have to do anything but turn the key. The low end is your typical "fixer". There is also the location to consider--obviously a "view" home is going to be worth more than one that's next to a garbage dump. Real estate agents do research to find comparables for your home and it is only an educated guess. However, the ONLY people who decide the final worth to a home is the buyer. Buyers in this market have a lot to look at and are able to be more picky. In other markets, mulitiple offers come in and it sells for a higher price than was listed. Sellers tend to be emotional with their house and buyers are all business. There is a "right" price for any house in any market. It depends on the sellers' urgency to sell. If they aren't in a hurry, waiting until the market changes would be a good idea. If they need to get the house sold yesterday, an agressive price would be a good option as well. Along with price, presentation is important.
Keep in mind: real estate agents take 100% of the risk (as far as expenses go) until the house sells. It's in the best interest of everyone involved that the house sells for the highest possible price in the shortest amount of time. If the agent is doing his/her job by marketing the home and keeping the seller informed, chances are that the house may be overpriced. The agent should have a marketing plan that is agreeable to the seller and go with that. The seller should also understand that nobody makes money until escrow closes! Trust me the agent wants that house sold and FAST!
Good tip: if sellers remove as much emotion from the process as possilbe then the process will move along.
This has been a fascinating market, I'm sure we can all agree on that! If the house has been on the market for awhile then either it's priced too high for this market, not good enough exposure via fabulous web pictures, not staged well or a combination of the above. Buyers are very picky right now and it's my experience that you can move them off the fence if they think the property is priced better than their competition. The house information identified above is not adequate for a price opinion from any of us. Their agent should provide them with the facts........all homes in the price range that are on the market so they can see their competition, all recent solds and pendings so they can see what those folks had to reduce their homes to in order to secure a sale. It is a strong Buyer's market this year in most areas and Sellers must get realistic and respond to that. Please remind them that the longer their home is on the market, the less they'll most likely get for it. Best wishes.
Hope this helps~
Your friends shouldn't take it personally. It's just the market saying: "For this property, in this location, with these interest rates, as of April 2008, buyers aren't willing to pay $600,000."
Hope that helps.
Sometimes that is the answer if Pending and Sold properties are selling for that amount, but other times you need to look at the days on the market. If the days on the market are high then it just may take a longer period to sell their home. Right now the price range on Camano Island for homes selling in between $400,000 to $600,000 has been taking quite a long time. There are over 250 homes on Camano Island that are for sale at this time.
In addition to the statistical analysis information I posted below... another thought came to mind... Make sure your friend's agent is giving them exposure statistics. One helpful tool is keeping track of how much web traffic or agent database traffic the home is getting. For example, for each website the home is posted there is a click ticker (a hit/view tracker). When a property is pulled up in detail and reviewed by an agent or a potential buyer that number of hits will give them an idea of how much exposure the property is getting on the web. If the numbers are low... something needs to be adjusted to bring more internet traffic to the home. Exposure is key! Data now shows that buyers do 80+ percent of their home research on the internet in addition to the guidance they are receiving from their local real estate agent. Often times a buyer will discredit a home for viewing if the photo gallery or website property details aren't well represented. The bottom line... magnificent property photos and web detailing is mainstream and now a potential buyers expectation! Hope this helps!
Homes that sell in the first 30 days will sell closest to asking price. Pricing a home high is not the way to maximize the price. The buyer that sees the home they purchase first sees it with a Realtor, so if the Realtors are not showing the home, they don't think that it is worth showing (compared to other homes on the market).
You do not mention the market time, however the trrend is that homes that sit on the market sell for less. My rule of thumb is ten showings or two offers in two weeks, or we adjust the price. Remember the price is not based on what they paid, how much they owe, or how much the have invested. Price is what a willing and able buyer will pay.
Buyers want value, so the best deals always sell first. How many homes, like your friends, have sold in the time this property has been on the market?
Hope this helps.
This seems to be the most asked question in today's real estate market. Acreage is something I know a whole lot about as I have horses and work with many clients whom have acreage properties. I will try to answer your question with some statistics and guidance for this niche of real estate. Right now, in Snohomish County, we have a very large number of properties with acreage actively listed in the MLS (about 350). In Stanwood and Arlington (usually a buyer will choose both those areas in their buying criteria) there are 103 listings actively available with 1500+ square feet on 4+ acres. That means they have a whole lot of competition out there for their home. To set their home apart from the competition it needs to be in AMAZING shape/condition/staging and presence for a buyer and featured by their agent accordingly. If it is not... a buyer will move on to the next property. The median/ average statistics for the market of your friend's home are as follows... average size of home for this area is 2600 square feet, has 3 bedrooms and 2.5 baths currently listed at $575,000 with an average market time of 123 days. Obviously certain homes have differing features that make one home attractive to one buyer over another. In answer to your question... "should the continue lowering the price??" Your friend has to do what is best for them and make an informed decision accordingly. Their agent should be able to provide them with property specific statistics from a service like TrendGraphix (you have to be a member to Trendgraphix but there are other tools available for this through our agent database) to give the sellers an exact positioning of their home within the current market. Once all that data is evaluated... only then can an appropriate price be considered. At the $575,000 price point they seem to be in the average/median area of inventory. Have them request some statistical analysis from their listing agent to answer the pricing questions and give them an opportunity to make an educated decision on how to best handle their biggest investment. Knowing the market's particulars is key. It's like having a road map for a road trip. Without direction you are bound to get lost or take a wrong turn! Good question! Thanks for posting!