Tampa Palms, Westchase, Carrollwood and Tampa Bay Real Estate News From Jeanne Prigitano

September 27th, 2010 10:28 AM

In this market, it is often difficult to price houses properly. As I often tell my sellers, they will price the home, I will market it, but it is the buyers who will tell us the value. Yes, we can do a comparative market analysis (CMA) and that is definitely an important step in pricing. A CMA doesn't really tell the whole picture anymore. It seems that buyers no longer look in a specific areas. They will travel far and wide to find the best value for them. Yet neighborhood has, does and always will have a significant impact on price no matter the market. It doesn't matter if the house is the "best" or "biggest" in the neighborhood. There is just so much value a neighborhood can command. Buyers looking in neighborhoods have an idea of what the values should be in the neighborhood or what they are willing to pay. So, if the house isn't selling it may just come down to price. As a Realtor, I do accept a lot of the responsibility. I must help price it properly at first, market it effectively, get the right exposure, make recommendations on staging the house, expertly negotiate and handle the many details. If it is still not selling, then it does come down to price. I recently read the article below. It is what I usually tell sellers. I posted it here because I thought that if it's not just coming from me, your Realtor, it might have some more impact. So, what do you think?

6 Reasons to Reduce Your Home Price

By: G. M. Filisko

G.M. Filisko is an attorney and award-winning writer who made strategic price reductions that led to the sale of a Wisconsin property. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

While you’d like to get the best price for your home, consider our six reasons to reduce your home price.

These six signs may be telling you it’s time to lower your price.

1. You’re drawing few lookers

You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.

2. You’re drawing lots of lookers but have no offers

If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.

3. Your home’s been on the market longer than similar homes

Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.

4. You have a deadline

If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.

5. You can’t make upgrades

Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.

6. The competition has changed

If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.

Posted by Jeanne Prigitano on September 27th, 2010 10:28 AMPost a Comment (0)

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