I showed a whole group of homes in 94087 yesterday. We started on Knickerbocker, and went over to Dunnock and Egret and Oriole and Sunnymount. I have actual buyer feedback from a wonderful couple that I am assisting on their home search in 94087.
As part of some research that I am doing for my buyers, I observed that 9 of 49 homes experienced price reductions in 94087 over the last two weeks. Ouch. I saw a lot of $75,000 price reductions and one $119,000 price reduction. I don't know if I could advise on how much a "price reduction" should be without knowing more information. If you look at homes that you are "up against" then this should give you a guide. Also look at pending homes, because those sold and may give you further insight.
I am an expert listing agent and would be happy to get with you on steps to prepare your home for sale -- mindset is a critical component -- and you don't want to chase a declining market too long. It is not a lot of fun.
Here's the link to my blog on selling your home:
Erica M Nelson
Coming in two weeks: new news column in the San Jose Mercury News
The answer lies in your motivation and/or the reason for your sale. It seems to me that you are not completely confident that your home will sell within your desired time frame. Are you thinking of "testing" the market with anticipation of a price reduction or two? This is a huge mistake. You want your home to be at it's absolute best when it hits the market becasue there are lots of other homes that buyers can go to if yours does not grab their attention.
Analyze the factors that go into the successful marketing and sale of your home. In my opinion, the agent you choose is the most important factor in a successful sale. Does he/she have an aggressive marketing program that analyzes your home (both strengths and weaknesses) and where it fits into our market. Putting an ad in the paper and the home on the MLS won't cut it. Look at his/her sales history. Did you know that the MLS has data that can easily be pulled which allows you to look at an agent's listing history (any agent for the last 11 years)? Ask for it and if the agent can't provide it or worse yet, doesn't know how to provide it, that might tell you something about their ability to sell your home.
I would look at your home; location on the street, amenities and upgrades, schools, staging, to help in determining a pricing strategy that works for you.
You need to make the marketing effort so complete that you shouldn't have to have a price reduction. However, you also should have a plan in place, should you need to reduce the price (i.e. if it doesn't receive an offer within xx days, then the price is reduced xx amount). Starting your marketing efforts with the assumption you'll be reducing your home's price is a self fulfilling prophecy. Do it right the first time, be smart.
According to MLS there are currently 49 active listings in 84087. They have been on the market an average of 77 days. There are 12 pending sales which were on the market an average of 8 days. 14 homes sold in the last 3 months with an aver age of 29 days on the market.
It does not take a rocket scientist to figure out that homes that are well priced sell quickly, and homes that are over priced don't.
Good luck on your sale!!!
In this market we have seen houses on the market for up to 12 months, especially if they are not priced correctly. We have also seen houses on the market that are sold within 1 week. Why is that?
There is no precise answer to your question. The most important issues are, if your house is well price (at market value or slightly below). The people who price the house correctly right from the beginning are the winners in this market. That means that they can take most of their equity out. The losers are the ones who are to greedy and price the house too high. They will have to chase the market and the longer a property sits, the more equity you are losing.
A competent Realtor can make a thorough comparative market analysis and price the property at the high end of the price range it is in. But it has to be the correct price range otherwise you miss your target group.
The winner in this market is the first one out of this market. So pricing the house 'right' is everything.
Good luck to you.
I'm not sure what your question actually is, but let me try to answer what I believe you are asking.
If your home is properly prepared, well marketed and priced spot on for the market, you can anticipate selling at or close to the list price. The people who have problems selling in the current market are those who DONâ€™T properly prepare their homes, DONâ€™T hire a Realtor with an extension Internet marketing plan or experience in the current market, and set the price too high at the beginning hoping someone will bite. They wonâ€™t.
Have your Realtor prepare an extensive market analysis, and then price your home AHEAD of the market (lower). Do it right, and you will sell fairly quickly (within 30 days). Try to hold out for a higher price and you will sit there for a while, have to reduce your price AFTER the market adjusts and lose more money in the long term than if youâ€™d set the price right at the beginning.
Here are a couple of links that may be helpful: