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All these people talking about reducing the price of their homes for sale, trying to increase the percentage of commission that goes to the buyer's agent, throwing in perks such as plasma TVs, etc.
Spring is the start of the traditional selling season. Why do sellers (or agents for that matter) think mid December is a time to reduce SP by $10k?
All these people talking about reducing the price of their homes for sale, trying to increase the percentage of commission that goes to the buyer's agent, throwing in perks such as plasma TVs, etc.
Spring is the start of the traditional selling season. Why do sellers (or agents for that matter) think mid December is a time to reduce SP by $10k?
Your thoughts?
-Mark
Because they have a client with a house on the market for 5 months, the news continues to report that prices are falling hard enough to put cracks in the sidewalk, inventory is piling up, and they want to be positioned as the best value available when all those spring buyers start looking?
Because they have a client with a house on the market for 5 months, the news continues to report that prices are falling hard enough to put cracks in the sidewalk, inventory is piling up, and they want to be positioned as the best value available when all those spring buyers start looking?
I agree, Bill. But those particular sellers started out in mid-August '07 with a grossly over priced home hitting the market because they wanted to be the last to get top dollar for their home and were in denial.
Maybe they started FSBO then listed in September when they could not sell on their own.
By now they are blaming their agent, or maybe even firing them.
My advice was pull it off the market if no action by early Dec. and start thinking fresh now in late Jan.
Reducing between Thanksgiving and New Year's shows desperation, IMO.
Going by the MLS numbers, my local market is definitely seasonal, and this month or next is roughly the low point of sales for years I have data on. But sales at this low point are 20% below the low point last time this year, and 30% below the low point 2 years ago. So there's a seasonal part of the down numbers, but even removing the seasonal down months, the market is much slower than before. It'll bounce in the spring, but will sales volume be 30% below a typical spring? And will the fact that everyone knows that spring is selling season cause a flood of new listings to appear, making it even harder to get your particular house sold? I don't think it's a sure bet to wait until those questions are answered to drop price - by then it might be too late and you'll be chasing the market down.
You could also ask people from southern CA, FL or AZ how they did by holding their price through Christmas '06 into the selling season of 2007. It didn't work out too well - the bounce never happened and values continued to fall. The credit markets this year are worse than last year, so I don't see reason for much optimism in finding a bunch of new buyers all of a sudden.
All these people talking about reducing the price of their homes for sale, trying to increase the percentage of commission that goes to the buyer's agent, throwing in perks such as plasma TVs, etc.
Spring is the start of the traditional selling season. Why do sellers (or agents for that matter) think mid December is a time to reduce SP by $10k?
Your thoughts?
-Mark
Spring is the traditional start however typically inventory starts to increase in January (in MOST markets). I've noticed new homes coming back on the market (along w/old homes that are relisted w/a "new" price (AKA "reduced" price).
I've always thought it was a bad idea to take a home off a market during the "slower" time of the year because if its not on the market it can't sell, period.
I do understand why people do it though. (once they re-list, they'll be on the "hot" sheet again in realtor speak).
To Coupon Jack's point...you're right. Marketing a home is, in large part about momentum, getting it and keeping it. In certain circumstances it is not a bad idea to take the house off the market (this is a function of the seller's motivations) temporarily and then to get it back on the market and try to build a new momentum with the new buyer pool.
Take into consideration also the stress in keeping a house "ready to show" over the Christmas holidays...and if the individual doesn't NEED to sell (i.e., no desperation), then I think taking it temporarily off the market and then relisting can be an excellent tactic.
To Coupon Jack's point...you're right. Marketing a home is, in large part about momentum, getting it and keeping it. In certain circumstances it is not a bad idea to take the house off the market (this is a function of the seller's motivations) temporarily and then to get it back on the market and try to build a new momentum with the new buyer pool.
Real estate in any market is affected by seasonal forces. For a couple years, sellers in many markets could sell anytime of the year without considering a strategy. This was not normal but people quickly got used to and expected it.
The seller I described in post #3, had they considered strategy and accepted reality, they would be listing their home soon at the right price and their net would very likely be higher when it does go to closing. The first 2 weeks after a house hits the market is very often when the most market interest is created. I have much more success with freshness than momentum.
Home pricing is critical, and should be based on market values and an effective sales strategy - not what somebody "needs" to get for their home to pay all their debts.
Simple supply and demand forces, as always, are heavy in play:
Money supply - down
Inventory - up
Prices - down
There will be more new listings in the next three months, but the amount of buyers will increase too.
If I had to chose a typical slow time for sales, I would say it's the 1st two weeks of Dec. Just before tax time is due, and about the 1st month of a typical summer school break.
Mostly selling land, our sellers also think it's a good idea to take their property(land) off the market for the winter. We have lots of holiday shoppers right up to christmas. Then it starts up after christmas. I try to discourage my sellers to pull something off the market just because of their "spring" notion as our buyers typically come in from out of state, so they can travel during holidays and 3 day weekends.
We also have broker's properties listed and they too fall into that idea of pulling it off for the winter. Average seller we can convince otherwise, broker seller's are usually pretty adamant. They sell houses in the city and don't understand the land game.
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