Constant change. There’s an oxymoron for you. That’s the real estate market now, though. Sellers who have worked diligently to get their home ready to sell have now missed the blazing hot market, and must deal with crickets. Yep, that’s what you hear while you wait for the elusive buyer. It’s a shock! We’re expecting to get an offer in the first week and now, nothing! It is frustrating and financially scary in many cases, particularly the ones where the seller has already moved out and still has a payment on the vacant home. But that’s the reality we face now. So it’s more important than ever for you to understand a falling market.
A falling market is the hardest to price, in my opinion, because by the time you are ready to upload the details for the galaxy to see, that price is no longer in the bullseye. And you can’t predict how far nor how fast the market will fall. In a RISING market you can just add in some percentage and get pretty close, still being flexible enough to RAISE the price as needed. But things are different in a falling market.
The key is the ‘ing’ part. (I had my fingers on the wrong keys and instead of typing ‘ing’ I typed ‘omg’. I’m laughing because, well, that’s SO appropriate!!) But, present participle is what that ‘ing’ means. That means something that’s “in process”. FallING. What does that mean to you, seller? It means you have to put on your running shoes and be flexible and nimble as regards pricing. I can get you close to the bullseye, but as the market falls, we have to be ready to chase it in order to stay IN THE MARKET. Stay with me now, because that statement comes with a caveat. That’s important! Lowering the price may not make a difference!
You can be ON the market and not be IN it, and ‘normally’ you can tell you’re not in the market by the absence of showings. So if you’re not getting showings, you’re THEORETICALLY not IN the market. I know, this sounds weird but stay with me. I promise to explain. IF you lower your price enough, you’ll capture a buyer, but if you have to go to 5 bucks, is that really a good idea? Uh, NO. I say that because of this, the caveat.
If a huge factor in trying to sell is the ECONOMY, then you may lower the price and STILL not get a buyer (read that sentence again, carefully). That would be because of how financial conditions have changed and maybe your intended buyer can no longer a) get a loan; or b) afford the payment if they can still get a loan. Follow me? It’s not always about the price. It is always about the economy.
I’m saying all of this to give you a couple of factors of many about pricing a home to sell it. It is never easy, except when there are six cars parked out front with drivers frothing at the mouth. Those days are gone forever, by the way. But it is exceptionally hard when the government sticks their spoon in the pot and stirs it. It gets crazy, and listen, we cannot control that. We can only adjust our sails. You know that metaphor. Now more than ever it’s important for sellers and their agent to collaborate about pricing and strategy. Yes, I said strategy, a HUGE factor. If you cannot afford two payments, for example, you’re going to have to price low and take your medicine. That’s just plain reality. And that’s an example of your strategy being: GET IT SOLD FAST. Another strategy is: I don’t care how long it takes, I want my price. (That doesn’t usually work, by the way hahaha).
Understand that I, your agent, still have not figured out how to conjure up a qualified buyer from the ether. All of the chanting and sage burning hasn’t worked. Gosh, would my life be different if I could. I, like you, am at the absolute mercy of a FALLING MARKET. And while I always want to get you a good price for your home, the MARKET tells us what your home is worth. The MARKET shows what has sold for how much in your proximity, and like it or not, we have to be IN the market, or we hear….you guessed it: Crickets.
Another thing to KNOW is that ‘days on the market’ are going to increase in a falling market. Instead of days to go under contract, it could be MONTHS. Sorry, that’s the reality. If you sell for 5 bucks though, hey you can sell in a week.
So don’t beat up your agent please. We are just as upset as you are, maybe more. Believe that. And, put on your thinking cap and your running shoes because this market is whew…a bear. And in real estate, playing dead is the wrong strategy. So is yelling and making yourself look bigger. This is teamwork time.
I can help you; I’m a strategic pricing specialist. That sounds impressive, but in reality, we are a team and we work together. I wouldn’t want it any other way. Call me. I’m Brenda and I’m a Coldwell Banker Advantage agent. Let’s talk!