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When Price is NOT the Issue (Advice for Sellers)
By Ryan Ward | November 2, 2007
This is a topic that I have bounced around with other agents lately as well as discussed with a few sellers. The answer to the question is the same regardless of whether the market favors buyers or favors sellers, but, right now I have seen a lot of REALTORS and sellers allowing their frustration get in the way of reality on this and I just want to firm up a fundamentally sound economic principle.
Price is Always an Issue
O.K., I said it and some of you may disagree. The argument I hear most frequently on this is the one from a seller or an agent who says that they have already lowered the price and it still hasn’t sold or it has not increased traffic. This is called denial! What it actually means is that the price is not low enough to make the home a better value than others that they would buy instead.
You see, people are actually still buying houses. I’m sure you know that, but, the news reports make it sound as if that is not the case. The truth is that what happens in a buyers market is only the homes that are priced to meet the marketplace of their home will sell. So no matter what condition the real estate market is in, your home will sell if it is priced correctly.
Now that we have that part cleared up, the question becomes do you really want to list and sell your home at a price that a buyer is willing to pay? Be honest about this because if you aren’t honest now, you will waste my time and yours.
Who does that help?
Category: Atlanta Real Estate |
Hello and welcome to my Atlanta real estate blog. My name is Ryan Ward and I run The Ryan Ward Group at Keller Williams Realty Consultants. Stay informed with information on neighborhoods, market statistics, homes and editorials on local, regional and national news that affects all of us here in Atlanta and elsewhere. I enjoy life and writing so don't be surprised if you read something thsat isn't directly related to real estate. We all need a break sometimes. If you have any questions about what you read or would like additional information, please fill in the form below or give me a call at 404.630.3187.
November 2nd, 2007 at 3:30 pm
Their is a house in my neighborhood that was originally listed for 150k about what was reasonable. Now its 50k above. I imagine they are going through the same thought process of “we lowered it and it doesnt seem to matter”. It hard to when doing listing appointments when sellers are enticed by whichever agent quotes them the highest price.
November 2nd, 2007 at 3:32 pm
Ki,
That’s a great topic for another blog post!
“List with me! I’ll list it for more!”
It’s tough for many sellers, but, better to get the truth out before it goes on the market…
November 2nd, 2007 at 11:41 pm
You are dead on Ryan! Price will make it happen. Another facet of this question is that if you want X dollars for your home you have to invest the money needed to make it worth X dollars. The homes I am seeing move in this market are either priced to move or they are totally market ready - move in ready and are outstanding for the price range. A great house at a great price will still sell quick!
November 5th, 2007 at 10:32 pm
It’s all about an adjustment of perceived value…Everyone’s perception of value was much higher one year ago, and now the seller’s perception hasn’t quite caught up w/ the buyer’s perception.