In our current market situation, many home sellers are frustrated, angry and feeling a little helpless. We think it’s important for home sellers to understand what to expect.
What constitutes a Deal? I think this one is a question of perceived value. In other words how is the home priced to begin with. If the home is priced correctly, we are generally seeing offers starting in the 5% to 3% below list price range and sales prices from 2% to 3% below list price.
If on the other hand the home is excessively over priced offers can start in the negative double digits 15% to 20% below list. The attitude we are seeing from home buyers is, “Hey if you’re going to be unrealistic, so will I”. It’s almost like buyers are seeking some sort of justice or revenge for the hit they took when they sold their homes. It become important for the Buyers Agent to maintain a realistic/non-emotional perspective of how the home is priced in relation to the local marketplace.
How many showings should yield an offer?In a “normal” market we generally expect an offer for every 10 to 12 showings. In our current situation, we are seeing this number extend as high as 20 showings. The fundamental problem has to do with the amount of inventory in the marketplace. More home for fewer buyers=longer market times.
If you have had between 12 and 20 showings it’s probably time to consider reducing your price.
How many showing should I expect per month?-This number depends on your price range. The lower the price the more showings. Homes at the upper end of our market are seeing little to no activity.
- $0-$150,000 expect 8 to 10 per month
- $151,000 to $250,000 expect 6 to 8 per month
- $251,000 to $350,000 expect 4 to 6 per month
- $351,000 to $500,000 expect 3 to 5 per month
- $500,000 to $1,000,000 expect 0 to 3 per month
- Over $1,000,000 expect 0 to 1 per month and in most cases 0
The upper end of our market is seeing very little activity. Coincidentally, this is where some of the best deals are in the marketplace today.
How long is it going to take to sell my home?-This is a combination of the previous three.
- Price it well, stage it well and market it aggressively
- Keep track of showings and feedback, after every 12 to 20 showings drop the price to the next level.
These are all Real Estate fundamentals. Our market’s not great but it’s not as bad as the Gazette and national news portrays it. We didn’t see the insane price increases some areas enjoyed so we didn’t have a far to fall. Follow the fundamentals and you should be fine.
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