Sellers advice here. You home will sell for what it is worth today, in today's market. This is a great post from Peggy Wester in Grfton Wisconsin. She brings up a delicate and excellent point about market value and your home. It's not what you want for the house or how much you need to have.
It's what the market will substantiate at TODAY's number.
It seems like things are getting tougher and tougher in the world of real estate. More and more "for sales" are popping up, interest rates have creeped up a bit, the buyer tax credit is nearing its end, and short sales and foreclosures continue to spatter the inventory. And yet, it is still difficult for some to accept that no one is immune from the rippling effects of these conditions.
Those of us who are in the business of residential real estate sales hear it all the time. "I need to net this amount of money, so I need to price my house here." If only it worked that way. But it doesn't. It simply doesn't.
In this complicated market, prices continue to drop. In our area, we rarely see a home sell for its assessed value anymore, much less fair market value. So if a seller is selling within a couple of years of buying and has made minimal improvements, if any, chances are they will not be making a profit. No matter what is wanted or "needed" to net from the sale, the buyer will determine what the home's value is.
Remember that today's buyers are pretty savvy -- they know what you paid. They know what the assessed and fair market values are. They know what comparable homes in the neighborhood have sold for. And they know that home values have fallen over the past few years and unfortunately continue to do so.
If your goal really is to sell your house, you must price it appropriately. A buyer doesn't care how much you need or want to walk away with at the closing table. So price it to sell, not to sit.
Isn't it amazing how much more they know than we do. I get this alot, sad but true. Then they are shocked when someone makes a much lower offer (like where you told them to price it in the first place). hMMMM
Suzanne: We do not set the market, but if we did I'm sure that prices dropping wouldn't be our idea.
They know what's going on as well but want to test the market and you. To see if you CAN get them that price or something close to it. It's up to the professional to educate them. It's going to go on as long as there is real estate.
Lyn - There once was a time--a long time ago in a galaxy far away when such a strategy would sometimes work. It's nice to remember the good old days, but I think we may as well bid them farewell forever.
Hey Lyn,
We should do a good recopilation of these kind of topics specially for sellers, there are some sellers they don't understand and some of them also they dont' believe the facts about the real estate market in the area. That's a great blog as always !
Ray, that's a good thought a compilation of seller subjects. I've done it before, maybe it's time again.
John: Yes, the good old days when in our area if you needed to move within the first year after purchase you zero'd out and were on your way. I am personally surprised too when I see the price declines right before my eyes every day. I've just noticed it again with all the influx of sellers for the 'spring market'.
Terri: Never thought about the test. I know that they think you might suggest a lower price because it will sell easier, well yes that's true. I am going to suggest a price that the house will actually sell. Not add another 2K above my number just in case.
Good reblog. We are being assessed at 100% as we speak. It's going to be interesting to see how well the appraisal/assessment company did without going inside any of these homes. I have a feeling the assessments are going to be way higher than fair market value.
David: Many homeowners are up in arms because they are being taxed at an unrealistic price. The assessor here doesn't want to lower the values so they can make up revenue from the foreclosures, etc.