Excellent post--straight forward and to the point!
Whenever I go on a listing appointment, I generally find that the seller already has a “number in their head” about what their home should sell for. This number can come from various sources. It is – unfortunately – almost always higher than the current market can command.
In truth, I can’t blame sellers for this…their minds have been levered to continued price increases to such an extent that the current market has left most sellers blind sided.
The first thing I often hear is that “I need to get X out in order to buy my next home which I can now get for Y because its gone down in price. The trouble if the property you want to buy has gone down so much in price, chances are the property that you want to sell has gone down by a similar percentage. Wishful thinking is often the culprit here. Markets are fluid – that was fine when prices were going up – but it also holds true when prices decline.
Misinformation is another issue. Many sellers look at what their neighbor is asking for their home. Asking isn’t getting. Many listings are overpriced in this market – so setting your price on the basis of other listings is not a wise strategy.
“But my neighbor sold their house for X just six months ago!” Six months is a lifetime in a depreciating market. If your market is depreciating – and many markets still are – then prices have decreased over six months.
Zillow zestimates and other information on the internet may or may not be accurate. Zillow has been off as much as 25% in our area. So if the zestimate of your property seems too good to be true, it probably is.
If you need to sell, price your home competitively – this is particularly important in a declining market where inventories are high and buyers are few. Overpricing your property will result in fewer or no showings. The property will sit as the market declines further – resulting in an even lower price down the road. Overpricing a home is just about the worst thing you could do in this competitive market.
© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.