The Price Must Be Right When Selling Your Home
by: Jeff Hilgert
The Price Must Be Right
As recently as last fall (2005) most Bay Area home sellers were able to price their property with little forethought and within days entertain multiple offers that generally resulted in very desirable terms to the seller; a quick close of escrow, an as-is sale and more often than not, substantially over asking price. Lately, as we’ve heard, the market has cooled off, so accurate pricing has become crucial to having a quick clean sale.
Yes, we still see multiple offers and overbids but far fewer than before. Recently I presented a buyer’s offer on a small, charming home in Albany; their offer was very clean, over asking price and it wound up being fourth of five. A well-priced home in a desirable neighborhood will always receive the most attention and sell more quickly.
Prior to 1999, when the East Bay real estate market had just begun to heat up, setting an asking price was usually a straight forward analytical process. Comparable sales data was accurate because for 3 or 4 years the market had changed little in terms of appreciation or depreciation. Conversely, in today’s changing market, comparable sales from only a few months earlier may supply an outdated, inaccurate number. Until we reach a stable market, with minimal appreciation or depreciation, setting a final asking price should be done just before the property is officially put on the market, utilizing the freshest data.
If interest rates and housing inventory continue to increase there will inevitably be a decrease in the number of buyers and home prices will decline.
Does this mean that it is no longer a good time to sell? As long as you, the seller, aren’t suffering “price lag”, are knowledgeable about current market conditions such as comparable sales, pending sales, expired listings, average days on the market, marketing strategies and local inventory you will be able to price your property near where it should sell in a reasonable amount of time.
Overpricing a home stigmatizes it in the eyes of agents, discourages buyers, can cause a longer time than necessary to sell and in the end yields less than market value.
Hiring an experienced Realtor® with a sound marketing plan can provide you with the most up to date information and help you arrive at an appropriate asking price for your property which should generate plenty of interest from qualified buyers.
Don't leave money on the table. The price must be right!
Visit my web site at http://www.jeffhilgert.com for more home selling and buying tools and to SEARCH THE MLS.
About The Author:
Jeff Hilgert is a Real Estate Broker in the San Francisco East Bay Area and has been successfully representing buyers and sellers in the Cities of Oakland, Piedmont, Berkeley and surroundings for 15 years.
August 2006
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