Are you in a seller's market?
- Less than 6 months supply of standing inventory is considered a seller's market.
- Standing inventory is computed by dividing the number of homes available by the rate of sales during the past 12 months.
- In a seller's market the number of buyers is large in proportion to the number of homes for sale.
- The demand for homes is greater than the supply.
- Buyers must compete with each other for the available inventory.
- There may be multiple offers received shortly after a property goes on the market.
- Buyers will submit the highest possible price and terms that they feel the market will support.
- Prices will trend upward.
- In a climbing market, pricing slightly above recent sales is appropriate.
Are you in a buyer's market?
- In a buyer's market the number of buyers is small in proportion to the number of homes for sale.
- This situation can be created by high interest rates,employment decline and excessive building.
- A low number of buyers equals a lower price.
- Sellers must compete with each other for available buyers.
Prices trend downward.
- In a falling market, prices should be set at the lower end of the range, because time works against you.
- This may be difficult to do, especially if your home was purchased at a higher price.
Should you price "high," and hope for an offer?
- Houses should not be priced over the market. This is not the best way to position your home.
- You will inadvertently help to sell the competition.
- Your high price will convince buyers that another home is a good value.
- Your “time on the market” is evident to buyers, and is a subtle but important factor in their decisions.
- Your best leverage occurs during the early marketing period.
- Your home is being shown to the wrong group of buyers,from whom you need an aggressive negotiator - someone who will make a low offer.
How will you know if the price is correct?
- The best affirmation of correct pricing is "second looks" from buyers.
- This indicates that your home appeals to buyers in your price range.
- There may be a few "nibbles" before a buyer comes forward who is ready to act.
How will you know if the price is incorrect?
- You have steady showings, but lukewarm responses.
- There are buyers, but they have other choices with more competitive prices.
- You have very few showings. The buyer pool is small.
- This will require very competitive pricing and a longer marketing time.
- A small buyer pool is a "buyer's market" and requires more aggressive pricing.
How long should you market a home at a given price?
- About 8-10 showings is a reasonable number for feedback regarding the price.
- This usually corresponds to about 2 -6 weeks, depending on the market.
- In situations where there is a very small buyer pool, 8 showings may take longer.
- Your urgency and time frame must the taken into account in testing the market.
What happens if your home does not sell in a reasonable time?
- If your home has been on the market for months with no offers, you have been given a clear message that the price is set too high.
- This is particularly true if showings have slowed down and there are few prospects coming to see it.
- What you do at that point depends on whether you really need to sell.
- If you're not really motivated to move soon, you can always wait for the market to catch up with the price you want.
- It would be best to take your home off the market and wait for better conditions.
- Buyers become suspicious of a house that's been for sale for a long time.
- If you need to sell, we should discuss a schedule for dropping your price until we reach a level that attracts buyers.
- There's no reason to say, "We simply can't sell our house." Houses will sell if the price is right.
How can you get top dollar for your home?
- Although buyers will not pay more than market value, they will pay a premium for homes that are in excellent condition and well presented.
- With good condition and presentation, you can reach the high end of the price range achievable for your house.
- We will work with you to “create value” before your house goes on the market.
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