How Pricing Makes Or Breaks A Quick Sale
Real estate Agents are always preaching the virtues of pricing correctly for the market. Recently, we’ve seen a good example of the role pricing plays in determining how long it takes a home to sell.
Lake Forest, considered one of the Alabaster area’s nicest communities, is a good case for showing that Buyers are still around (despite suggestions you may hear to the contrary).
Like just about every other community you can think of in the Birmingham and Shelby Co. area, Lake Forest has seen its share of distressed properties (either already in Foreclosure or already facing it).
The owner of the home at 144 Red Bay Dr put the property up for sale in June, 2008, asking $297,000. The home didn’t sell, and was Foreclosed in October, 2010.
When the property came back on the market after being Foreclosed, it was listed at $224,900. Despite the new price, Buyers still weren’t interested. It took cutting the home’s price even further—down to $189,900—to get a Contract (the actual selling price won’t be known until after the sale closes).
Does this mean all Sellers have to cut their home’s price by more than $100,000? Absolutely not. But it does show that—in the current market—Sellers have some major decisions to make when it comes to putting their home up for sale.
The biggest decision every Seller will make is whether or not they are willing to meet the Buyer on the Buyer’s terms. That may sound very fundamental, but there are still a lot of Sellers around who allow their pricing decisions to be affected by:
Emotions and beliefs like these are not your friend when it comes to getting your home sold.
Your real friend toward getting a successful sale is the willingness to price your property low enough that potential Buyers will express interest soon after your home has gone on the market. This is not something many Sellers are anxious to do, given recent drops in home values. But those who do also typically realize another key fact about the current market: After they’ve sold their home and become Buyers again, the same market will be very much working in their favor, thanks to a large supply of properties available, as well as continuing low interest rates for financing. Buyers are getting some awesome deals these days.
Buyer interest is one of the most valuable keys to knowing whether a home is likely to sell sooner, rather than later, or at all. If your home is priced attractively, you’ll know it by the amount of calls and showing requests you receive. If your home gets plenty of showings but no Offers, this is another important factor, suggesting that the price is still not where Buyers feel comfortable.
If your home is on the market but the phone never rings, the silence should be deafening. It means Buyers are looking the other way, finding other properties they consider more attractive.
Posted on February 14, 2011, in Real Estate, Shelby Co. General and tagged alabama, alabaster, birmingham, buyer's market, colleen black, david black, homes for sale, keller williams realty, real estate agent, shelby county. Bookmark the permalink. Leave a comment.