This is an article that I think is very informative in today's housing market
Sellers Reset Their Expectations in the 2010 Real Estate Market
Who sets the tone and real estate values in the real estate market? Some may think it to be the Realtors and some may think it to be the sellers, but in truth it is what the buyers in the market are willing to pay for real estate. Sellers are resetting their expectations to be part of the continuing 2010 real estate market.
To be successful with a sale, sellers should step back and view their house as a commodity that is accepting to the market while depersonalizing their home and not viewing it with the natural attachments one would normally have.
Expecting a sales price that is reflective of a seller’s desires can be an expensive lesson that costs time and money as the house sits on the market unsold, while buyers simply move on to other houses on the market.
Ron Darby, Broker Co-owner of ERA Justin Realty, a “Top-100” ERA real estate brokerage nationwide shares 2010 statistics of the market. “Each day our highly trained staff of Realtor professionals share and educate our new sellers to the market with a comprehensive (CMA) comparative market analysis which is available at no cost and at no obligation. Our CMA will compare the seller’s house with others that are currently on the market, those that have sold, and those that have expired which will give the seller a suggested asking price. The distinct importance is that once the house is sold, it must appraise for mortgage financing, based on comparable sales that is public information and in our CMA report. It is disappointing for all sellers to have their Realtor obtain a purchaser, enter into a contract and then have a qualified buyer disapproved for mortgage financing. The transaction may then be canceled and the seller has lost time, effort and possibly a lower selling price for the next sale, if the market has continued to modify downward. If the recent sales are lower than they were two or three months ago, this indicates that prices are declining. This needs to be taken into account when you select a list price and the right Realtor.”
Continuing, Darby said, “One must pay close attention to market prices. For a seller to believe that his house is better than the competition, while being very similar, and if both houses are too high for the market, neither will sell, adding to the extensive list of expired listings throughout Bergen, Passaic, Essex and Hudson counties. Houses needs to be perceived as a good value to a buyer to sell in this market.”
Experts state that houses are most marketable when new on the market. Buyers continually shop for new listings to the market. Listings that don't sell relatively quickly often languish on the market. Price reductions often follow as the sellers begin to understand how the market functions. A listing that has been on the market for months is likely to receive a lower offer.
A listing that receives a lot of showing activity when it first comes to the market but gets no offers is probably overpriced for the market. In this case, it's best to lower the price to market value as soon as possible while the listing is still fresh in agents and buyers minds, even if this is within two to four weeks of the listing date. The Realtor professionals at ERA Justin Realty can determine this, in conjunction with their sellers.
Darby concluded, “There is a difference in real estate companies, and we prove this every day. We have put nearly 800 testimonials from our satisfied buyers and sellers into our publication, ‘Real Estate Results In Writing,’ available to be viewed at anytime. We are here for you and want to be your Realtor.”