Great article from the Democrat and Chronicle about the realities of pricing listings in today’s market. Here is an excerpt:
Much has changed in the market since the expiration of the federal tax credits at the end of April — pricing on a home, for one thing. These days, real estate agents say, the home should be priced right from the start.
“You don’t get a second chance to make a first impression,” said Sam Morreale, an agent with Nothnagle Realtors’ Irondequoit office.
Some people think that they can lower the price as the market demands, but it’s impossible to recreate that excitement of when a house is initially listed on the market, he said. Right now, there’s a bit of a disconnect between what sellers hope to get for their home and the new reality of the market, Morreale said. When sellers look at their neighbor’s home that sold four to five months ago for $120,000, it’s hard for the sellers to grasp that their home is only going for $109,000 in this market.
“When you’re a seller and it’s your money, you’re hearing it, but you’re not believing it,” Morreale said.
Sellers need to be aggressive — and realistic — with pricing and use data within the last three months, said Janet Campbell, an agent with Nothnagle Realtors’ Spencerport office. Too much has changed “after-tax credit” and relying on data that is 6 months old is just not accurate.
The seller might even want to consider pricing the home a few thousand dollars lower than the comparable price to adjust for the lost tax credits.
The tax credits “did drive more sales and did drive prices a little higher,” Morreale said.
After verifying the data, because sometimes there are sellers’ concessions factored into the price, the sellers need to rate their home to see how it stacks up against current competition, Morreale said. Check on curb appeal and improvements compared with other homes in the same area, for example.
(From the 9/4/10 edition of the Democrat and Chronicle’s Real Estate and Rentals section)
Nothnagle agents are up to date with current market conditions and trends. Interested in selling? Call a Nothnagle agent today to discuss pricing strategies that will help you sell your home in the shortest amouont of time for the most amount of money. Looking to buy? A Nothnagle agent can help you negotiate the best price on your next home.