Competing Homes should be considered along with Comparable Homes – Price it right the first time.

REALTOR® Outlook

By Kay Wilson-Bolton

November 14, 2006

When it is time to price your property, be sure to have your REALTOR® look closely at homes that could be considered “along with yours” (competing) as well as homes that are comparable.

Some of us are still trying to convince market players that prices haven’t really changed and that sales are really pretty even. However, there are many homeowners who long for a buyer who will help them dispute that.

A home seller in Oxnard put his home on the market and listed it for $625,000, which was above the price his agent recommended. The house was appealing and newly painted inside and out.

The listing was well received at the agent and public open houses. But, at the end of the first week on the market, the listing agent hadn’t received a single inquiry.

Furthermore, well-priced listings in the area were still selling quickly. Although the listing was relatively new on the market, the listing agent recommended that the seller reduce the asking price to $609,000,000. The seller agreed.

Within the next week the showing activity picked up dramatically. Open houses were frequent with new visitors every weekend. New listings around the subject were priced less that this one and selling.

It was easy to figure out that the listing was still priced too high. When listings are selling and yours isn’t, it’s usually because of the price.

The seeming lack of interest may also be due to local market conditions.
In a high-inventory market, the competition for right-pricing is even more important because buyers have more listings to choose from, and they can afford to be picky, as well as wait.

Ask your agent to call the listing agents who are handling your competitor’s listings to find out if these homes are being shown and how frequently. Then take a good look at the price of your home in relationship to the competition.

The time to make a price adjustment is when you discover that it’s too high, even if this is soon after the property is listed. Staying on the market too long at a high price is risky. If the market softens further, you could end up having to make a bigger price adjustment later. The issue then becomes “days or dollars”.

A minor price reduction is likely to result in a modest response. In order to make a positive impact, reduce your list price enough so that your list price is at or below the level of your competitors whose listings are being shown and sold. If you can, wait for another time to sell when the financial impact may not be so great.

 

Kay Wilson-Bolton is the owner of CENTURY 21 Buena Vista and brings a regional perspective to local issues. She can be reached at 805.340.5025. Her website is http://www.readysetkay.com

About Kay Wilson-Boltonhttp://www.kaywilsonbolton.netWith a full-time career in real estate, I can add to your bank of knowledge, not only in real estate but in many areas of life that deal with people and relationships and choices. My real estate career has taught me many lessons about planning ahead and looking forward. I believe in helping along the way so that they can be the best they can be in any situation. I serve as a Fire Department Chaplain and Coordinator for the Many Meals Project which serves homeless and hungry families in my community. The event is far more than many meals. As a result of my work with the homeless population in my community, I received the Good Neighbor Award 2017 from the National Association of Realtors and named as a Champion of Homes in 2015 by the California Association of Realtors. I make pastoral visits to the inmates in the County Jail System and offer them what God says about "all things being new" and His remarkable plan for our lives. I have served my community as Mayor and in many volunteer capacities. I serve others by serving God first. My husband is involved in prison ministry and is a graphic artist. We live a simple life in Santa Paula with an office cat named Scout, three rescued poodles and a cat named Tony Diane at home.

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