Home truths about home pricing

Oddly enough, the last thing most home sellers want to think about when their property is not attracting offers is price – even though they themselves may be extremely value conscious when looking at homes to buy.
This is clearly evident in the latest statistics from First National Bank which show that 80% of sellers are still having to drop their asking prices in order to achieve a sale. “And the average drop is around 12%, which means that most sellers are quite seriously out of step with what buyers are actually willing or able to pay,” says Berry Everitt, CEO of the Chas Everitt International property group.
Writing in the Property Signposts newsletter, he notes: “Such sellers will usually argue that prospective buyers are quite at liberty to make lower offers, but the fact is that serious buyers will usually not make any offer at all on a home they consider to be overpriced, especially if there are many properties on the market for them to choose from.
“Others will shy away from making a lower offer because they don’t want to offend the seller, even if they really like the property.
“And sellers need to face up to the fact that buyers usually know the market better than they do. Sellers may look at a few homes before listing theirs for sale, but buyers have frequently looked at dozens of homes over a few weeks or months by the time they decide to make an offer - and acquired a finely tuned idea of value as well as a sense of which way the market is tending.”
So if your home is not attracting any interest after a couple of weeks on the market, Everitt says, you should really consult your agent and seriously consider lowering the price as soon as possible.
“Sellers who do this when the listing is relatively new and the home still fresh in potential buyers’ minds stand a good chance of keeping the marketing momentum going. Those who don’t will, inevitably, end up with an unsold property that is stale – or about as attractive to buyers as last week’s bread.”
Issued by Chas Everitt International

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