Sure, price is a major factor when selling your home. However, you need to have an honest discussion with a top agent to make sure you accomplish your goals when selling your home. An agent should not always just suggest a 'price drop'. There may be other reasons your home is not selling than merely price along. In the long run that could cost you a lot of money.
If you still need help contact me at anytime. I'd be happy to discuss your situation in a very professional manner that has your best interests in mind.
Wheaton "Listings Sold" - http://media.reliancenetwork.com/dynamic/realestate/company/
Wheaton "Sales Made" - http://media.reliancenetwork.com/dynamic/realestate/company/
Wheaton "Total Transactions" - http://media.reliancenetwork.com/dynamic/realestate/company/
Stick to basics of "what does the buyer want in a home, location, and price". It is a buyers market, but they should not dictate the market.
Also are you planning to buy somewhere else soon? Many would be Sellers, are afraid to sell now because of the the drop in prices, but unless you are downsizing or moving to one of the few areas not hit by similar declines, it should be a wash or could be a buying opportunity. If you are going to buy again, I suggest you also focus on what you can purchase today.
Good Luck !
The bottom line is that the value of a home is not set by you as the owner or your agent (if you are using one). You only set the list price. The value of your home is determined by what a willing buyer is willing to pay that is also acceptable to you as the seller.
For the sake of simplicity, I will only talk about detached single family home statistics here. It is still a buyer's market in Wheaton as evidenced by the 24 months of inventory on the market. This number is based on a 6 month moving average of sales as of the end of June 2009. This is higher than the overall inventory level for DuPage county which has 20 months of inventory on the market. Markets with 9 months of inventory or greater are considered buyer's markets. While sales are up 30% from May to June (which is part of a typical annual cycle), they are down by 13.8% from the same period last year (Jan - Jun) for DuPage county.
As far as price reductions go, if your home is priced competitively when compared to similar homes, you should not feel compelled to do a price reduction. You should however be prepared to wait a while. In today's market, more than 50% of the buyers are first time home buyers. If you are not in their price range, there are not as many buyers out there. You need to make sure that your home is in the best condition and the best value out there in order to attract a qualified buyer. Regardless of the price point of your home, every buyer is looking for a good deal. And in today's market, that usually means price. So pricing is very important.
Another key to a home's value is its affordability. This includes factors that affect a buyer's ability to purchase a home including their job situation and their ability to obtain financing (ie. having good credit scores, having sufficient down payment and in some cases qualifying for a jumbo loan). In today's economy, these factors have impacted the buyers for the higher priced homes signicantly.
You have a good point about showing 100 homes to buyers. This sounds excessive. If the buyer's agent understands what their buyer's wants and needs are for their new home, has had their buyer pre-approved for financing, and has kept up with the market inventory themselves, they should be able find the right home for their buyer in a dozen or so showings.
Have a great day! Vince
I would price it for today's market, but I do not push price reductions. Price reductions only show weakness and give buyers an edge over you and the price you want.
I think some Realtors have lost there way and need to get back to the basics of how to sell real estate. Match buyers and sellers without waiting for the MLS to do all the work. Open houses, drop off flyers to each real estate office in town. Use civic groups, church's ect.
prices will drop more.
One other request I have is please stop showing 100 homes to buyers. This really confuses them and makes it hard for them to make a decision. Yes, there is a lot of inventory but that shouldnâ€™t mean endless showings. I think each buyer should not be shown more than 15 houses to choose from. Realtors should do their home work and also check to see if buyer is actually â€œPre Approvedâ€ and stop wasting peopleâ€™s time. There are just too many â€œrecreationalâ€ buyers out there.