Pricing your home right is key to making a sale.

No matter what the market is like, price is always a key factor. But in a declining market (buyer’s market), it’s even more important for the seller to get the price right. When the market is rising, as in a seller’s market, if the price is set too high the seller can wait and the market will catch up to it. But a price set too high in a declining market means that the house will be very hard to sell.  

In real estate there’s a period of a few weeks just after a home goes on the market that is prime selling time. The house is new to the market and will receive the most attention from real estate agents and buyers who are watching for the right home at the right price. If the house does not sell during the first few weeks, it loses that "freshness" in the market.  

How do you know the right price? You depend on your real estate professional for advice, you look at what’s happening in the market, and you take a realistic look at what houses like yours are selling for now. Difficult as it is, you need to put yourself in the buyer’s shoes. Recognize that in a declining market, buyers feel they can continue to wait for prices to go down. If home sale prices in your neighborhood fell 5% in 2007, then buyers expect they will go down at least that much in 2008. Your job is to price your home where it will be this year, not where it was last year.  

Suppose you set what you think is a realistic price, and still your home does not sell. A price reduction may be in order, but how much? If you have had a lot of showings in the first few weeks, but no offers, your price is probably about 5% too high for the market. If you’ve had very few or no showings, your price is at least 10% over market, and you are turning buyers away before they even get to your door. These percentages vary with different markets, so listen to your professional real estate agent when the subject of a price reduction comes up. You chose your agent because he or she knows the market, so take advantage of that knowledge.  

The "Special" Ed Haraway Team has more than 20 years of experience in the local market. We can help you understand the current market and price your home right to attract the most qualified buyers. No wonder we are known as the "The Realtors Who Treat You Special!"

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