Tag Archives: price reductions

The Year is Not Over for Motivated Home Sellers and Home Buyers

Thomas Jefferson said “never put off till tomorrow what you can do today,” and this should be the mantra repeated by buyers and sellers this time of year. With the holidays are coming, most home buyers and sellers believe “if I haven’t found the right home” or “if I haven’t sold yet,” it is best to stop now and regroup next year in the spring. Since this is such a common belief, it would seem pointless to argue the contrary. But this is exactly what I am going to do.

Still Time to Close Escrow Before the Year is OverSince it is a common mindset to hold off buying or selling a home until after the holidays, this means less competition on both sides. For buyers, it is obvious to see how this is a good thing. In Boston, where there has been very little inventory on the sales market, good quality, well-priced listings have sold quickly for close to, at, or over-asking price and many times with multiple offers. This time of year, motivated home buyers may be able to find a home with less stress and intensity than in spring.

On the selling side, if your property has been sitting on the market, now is the time to show buyers how much of a motivated home seller you are! If it is priced fairly for the market, try a small price drop and take new pictures. Make buyers forget that it has been sitting and the result can be renewed interest. Less competition from sellers who have taken their homes off the market also works in favor online casino of the seller who has an active listing.

The people who are still searching for properties this time of year are serious and motivated home buyers. These are the people that will trudge through terrible weather, work with shorter amounts of daylight, and go to open houses instead of malls for holiday shopping. On the other end of the spectrum, the sellers that are letting strangers into their homes wearing wet or muddy boots while they go wait somewhere out in the cold are motivated home sellers. These are the groups that want to put in an offer and want to accept an offer, not the type who are browsing or throwing out a line and hoping for a bite.

If you are a buyer or seller looking to close escrow before the year ends, contact the Realtors of Matthew and Alisa Group Real Estate to discuss the best strategy for meeting your goals before the end of the year.

Schedule a consultation with a Realtor

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Pricing a House: The Difference Between Sold Listings and Old Listings

This is a great time to sell with limited inventory on the current sales market and the mortgage rates at all-time lows. In fact, every news outlet is saying how the housing crisis is in remission, so why hasn’t your home sold yet?

Let me give you a frame of reference: if you have had a property on the market for longer than 2 months with no serious interest, your property can be considered stale and will be harder to sell. Keep in mind this is not true for all properties. Certain properties that fit into a niche market (multi-million dollar mansions, horse farms, etc.) or have problems (in areas with lots of construction, awkward layouts, etc.) will take longer to sell than turn-key properties. If your property doesn’t need improvements and is in a sought after location, why didn’t your house sell when it first came on the sales market?

Our society is becoming increasingly visual and tech-savy and people want to see high-quality photographs. Do your listings feature plenty of pictures of the property? Are the pictures high-quality and shot by a professional photographer? Is your listing mobile friendly so buyers look up your listing on their smartphone or tablet? If you answered “yes” to these, then more than likely it’s because the price is too high.

Pricing a house to sell in the current sales marketThere are many reasons a property doesn’t sell but more often than not, not pricing a house to sell in the current market is the factor for a listing to go stale. If you feel this is wrong, let me ask you, did you come up with a price based on the formula: I paid X so many years ago and put in Y so the price should at least be (X+Y)+Z with for inflation and appreciation? It’s an easy formula but it is the wrong way to go about pricing a home. One reason is that your ROI is never equal to 100%. There are several home renovation projects to increase its value, but none of them will give you back exactly what you put in. Another reason this formula is inaccurate is that the market works much differently and a property should be priced to sell for the current market. Worst case scenario is that your area took a hit in the housing crisis and it hasn’t recovered. If you bought it for X at the peak of the market, chances are you are not going to get it all back when you want to sell. Best case scenario, you bought low and held onto the property for years and now you can get much more than what you paid and put in.

“Is my property priced too high?”

If you and your Realtor are doing everything to market your property well, check the sales activity in the local market. Is there a lot of activity? If there is a lot of activity in your sales market but your property has not had any interest, this is a good indication the price is too high. Pricing a home is not a guessing game, have your Realtor provide a comparative market analysis and look at the data. This will show you what similar properties to yours have recently sold for and you will also be able to see how long they were on the market and compare the list price to the sold price.

If you are still saying to yourself that you know your home is worth the price you are asking, let me ask you this: do you really want to sell your home? If your answer is “only if I get the price I want,” you don’t really want to sell and chances are you won’t sell. If your answer is “yes,” then it needs to be priced to sell in the current market. If you want to get the best price, price the home to sell to begin with. This will bring a lot of traffic and interest right away, which is the most critical time for any house on the market. The properties that are getting close to asking or above asking are priced well at the start. If the property is priced too high to begin with, it will sit. To generate renewed interested, you will need to drop the price. Depending on how long you have it on the market and how many price reductions you make, you may end up selling for less than you would have if you had priced it well to begin with. In the meantime you have lost money because of the holding costs incurred through property taxes, maintenance, and mortgage payment.

Pricing a house too high for the current sales market

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Pricing a house to sell in the current sales marketIf this doesn’t move you to reconsider your strategy when pricing a house, see what your asking price gets you in the local market. Are there more bedrooms? New renovations? Landscaped outdoor space? These are what buyers are expecting at this price and if your property falls below their standard, buyers are not going to be interested.

If you are in the market to sell a home or would like to know what your property is worth in the current sales market, contact the Realtors of Matthew and Alisa Group.

Schedule a consultation with a Realtor

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