Business & Merchant
- Last Updated on Saturday, 02 March 2013 04:48
By Roger Dolanch
Broker/Owner, CENTURY 21
Have you noticed that there have been fewer homes available for sale locally? Compared to other years, real estate residential inventory in our area has been well below the number usually for sale at any given time.
Broker/Owner, CENTURY 21
Have you noticed that there have been fewer homes available for sale locally? Compared to other years, real estate residential inventory in our area has been well below the number usually for sale at any given time.
In fact, many local areas are experiencing actual shortages of homes for buyers. Because of these overall low inventory levels, we are seeing savvy homeowners listing now, as opposed to waiting until late spring, in the hope of maximizing their return. If you want to sell your property before summer, the right thing to do is to list now.
An ongoing problem we continue to see is homeowners listing at unrealistic prices. The issue is that while the market is improving slightly, jumping the gun by listing with an unrealistically high asking price will not get your home sold and will actually cause you to lose money in long run.
We’re all hearing the good news that nationally and locally prices are moving upward. However, it is not rising by leaps and bounds in our part of the country and therefore does not warrant huge increases in local home prices. Many homeowners are taking the good news as a sign that they can get unrealistic prices for their homes—this is not the case. I’m not saying that a lowball price is acceptable, either. What I am saying is that your price must be realistic to sell your home. As the homeowner, it is not your job to determine what the most realistic price of your property should be. This is the responsibility of your real estate agent.
The job of a good real estate agent is to look at the available data and take into account several variables, including true market conditions, to help you determine a realistic price. Pricing property or taking a listing is the major responsibility of a good agent. More than ever, your agent needs to educate you and inform you of the true market conditions in your area. The true pulse of the market lies within the closed data, not in the prices your neighbors have their homes listed for right now. Many agents continue to accept overpriced listings, which only gives the seller false hope and will prolong the actual sale. In most cases, this creates a missed opportunity to get a sale as well. One good way to assess the situation in a specific area is to compare inventory for sale versus other areas. For example, one area may have about 15% of all properties available for sale, while another area may have less than 5% of its total homes for sale. This is typically an indication that these properties are not priced correctly.
It is very important to note that the lenders and buyers control the current real estate market. I don’t like it either, however, that is the brutal truth. Sellers should understand the best pricing practices and hire a real estate agent who also understands the process. This will ensure that their home sells in a timely manner and for the most money possible. Pricing a home correctly from the beginning (as opposed to pricing it higher to leave room for negotiations) will actually get you more money.
Once again, your real estate agent needs to be honest and deliver the truth as to the true market conditions and to “right price” your property. Many agents are afraid to do this for fear of losing business, but the end result hurts the seller in long run, unfortunately. The best plan of action is to find an agent who understands how critical right pricing is and will lead you down the right path to getting your home sold as quickly as possible and for as much money as possible.
