Over the last couple of years we’ve been in a rapidly-appreciating real estate market. Sellers were simply waiting for prices to catch up. But now that prices have been fairly flat, the wait could last a long time. It is a real possibility that this will be the peak for the foreseeable future.
Almost half of the active listings between La Jolla and Carlsbad have been on the market for more than two months. Their unreasonable pricing have caused them to miss the “selling season” and the sellers are now left wondering when/if that serious buyer will come along.
If you are patiently waiting for the “right buyer” to come along, no problem. But for those sellers who want some real guidance about what it will take to get your home sold in the next few weeks, consider these;
A. If you are getting offers, then your list price is probably about right.
B. If you are getting lookers, but no offers, then your list price is about 5% to 10% too high.
C. If you don’t have any buyers looking at the home, your price is more than 10% off.
Buyers love to look at the days-on-market statistic. For every week your house is on the market, buyers are mentally subtracting about 1% from your original list price.
As a result, sellers should lower their price by 5% every 2-4 weeks until they start getting offers.
An exciting price creates urgency and enthusiasm among both buyers and agents. Without it, your listing goes stale quickly, usually after two weeks – and after that, many of the showings are for comparison to help agents sell the better-priced house down the street.
In addition, concern is growing over pending interest rate increases. What will that do to pricing? Will buyers jump off the fence while rates are still historically low?
Make sure you get good help!