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Resisting a Price Reduction may cost you money

November 17, 2009

In today’s competitive market the price you have your home listed at is very important to getting sold.  Why is it that some homes sit on the market for others and yet others sell quickly with multiple offers?  It has everything to do with Pricing your home correctly.

I know you thinking to yourself, but if I lower my price I am loosing money. If you haven’t had an offer in the past 30 days and it has been longer than that you can remember a showing it all boils down to the price of the home.   Western New York home appreciation can only be calculated once YOU close on a property that you own.

Read Also: What is Appreciation

Statements like “But Mary and John down the street sold their home for $275,000 (Sold April 7, 2007 -today is July 3, 2008) more than we have ours listed for” or “My cousin (the Civil Defense Attorney in Alabama) says we should have listed it for $25,000 more to give us room to negotiate” and my personal favorite “But on Zillow it is valued for $17,000 more” must be struck from your thoughts.

Those resources are not experts in Western New York Real Estate. They do not have all the facts that I have. As for Mary & John’s sale last year, well they had 750 square feet more than you and an oversized corner lot. Since then there have been two other sales this month, both comparable homes that sold for $20,000 less than you are listed.

I feel your pain and frustration. Those two sales are what an appraiser will use to value your home. Not the sale you want them to use. I am not here to tell you what you want to hear, I am here to tell you what you need to hear.

Read Also: Zestimates Good or Bad

Now how is that good news? Now that you understand Price is the driving factor, you are now empowered to:

  1. Make a decision do you really want to sell? If not, take it off the market and wait until there is a change in the market.
  2. It allows you to take a long hard look at your price and finally listen to what your Real Estate professional has told you from the start regarding price.
  3. There are buyers out there. Buyers that are ready, willing and able to purchase! By making the correct price adjustments for the current market conditions you will be putting yor home in position to get SOLD.
  4. Buyers will come to the table with a fair offer and they will remove as many seller objections as possible. Therefore getting you the highest amount for your home enabling you to move on to your next home.

Read also: I just want my home SOLD!

For a moment let’s talk about keeping your home on the market at the current price and condition and the cost to you by doing nothing:

  • You are enabling your competition (other homes for sale) to look better because they are priced better and are more appealing than your home. Look long and hard at your competition, see why they have a SOLD sign and you do not.
  • We have already established that you are over-priced, because you would not be reading this right now wondering “Why isn’t my home selling?” There is a cost of chasing the market down. Becasue that is what you are doing. Every day you have your head in the sand you are losing valuable time in getting your home Sold. The reality is: The first 30 days are the most likely time a home will sell, if it doesn’t in the first 60 days you have a 50/50 chance of selling.
  • They do not have to sell, they are ready to close quickly with nothing but a Home Inspection to be done.
  • They know the numbers, they know how much a roof will cost to replace, a bathroom an kitchen remodel will basically cost. They will factor this into an offer.

Read Also: How to feel confident about your home purchase

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