You can not under price your home!

Repeat after me, “You can not under price your home!”

I know that is a dramatic statement and a lot of you home owners out there don’t really believe that but if you have a minute and our willing to hang in with me and read through what I am about to lay out here,  maybe just maybe it might save you some time and money in the weeks and months ahead. 

First, in case you be under a rock and haven’t heard, we are currently in a buyers market. I know you’ve heard the terms, buyers market, sellers market, middle market, but, do you really know what that means to you as a seller? Most sellers cringe at the terms or simply balk at them and go about their business doing what they want to do any way paying no attention to the terms and really finding out the hard way when the take it in the shorts after 6, 9 12 months hell I’ve seen it go on for 18 months on the market all the time losing money.

So lets go back to my dramatic statement. You can not under price your home. How can that be? That can be because we are in a market that is steadily declining. So today you put your home on the market and next month it is worth less money. We have a glutton of homes and a small amount of buyers. Thus creates a buyers market and when the buyers are few as they have been and homes are not in demand it’s bargain basement time for buyers.

So you put your home on the market at a price you determine and if your home does not sell that first month it is now worth less the following month. The month after that further decline and etc. So if the worst is true and you have over priced your home in the first place you are now in much bigger trouble then you were at the start. Your home is sitting there on the market in the clouds. No one is looking at it and you are losing money every month. So you do a price reduction finally after 3 months but depending on how over priced you were and because the home has continued to lose money month over month it’s very difficult to catch up so you are now chasing the market down.

Now lets look at this in a different way. Buyers are few. Bargain basement deal mentality. What if you market your home at a bargain basement buyers market price. What do you think will happen? I will tell you, you will get a ton of showings in the first week. The lower the price the more showings, the more showings the more offers you will get. The more offers you get, guess what?  Buyers see the value in your home and don’t want to miss out on this great deal. They camp out at the front door to get in on the deal. They start bidding. Guess what happens to the asking price? It increases.

What we have here folks is a buying war. Buyers call their agent to find out what is happening with their offer. Agent calls the listing agent and finds out their are multiple offers on the listing. Buyers want the home so they increase their offer back and forth and the price goes up. I have seen it happen many times on Bank owned properties and short sales. Why because they are being listed below market value.

I have seen agents pull a home off the market and relist it at a higher price because they listed too low and got multiple offers in the first weekend. So I know this to be true. I have also seen homeowners panic because they got an offer right away and they thought they would have months to plan their move so they had to pull the home off the market until they were better prepared.

You can not under price your home because if you do you will get more interest then you know what to do with and you will sell your home fast and for more money then you ever will by over pricing and staying on the market for a year.

How low do you have to go to create this scenerio? It really depends on your home, your individual market including the short sale and foreclosures available, so a detailed analysis is required, but what do you have to lose by trying? Believe me you will stand to lose a lot less following this marketing model then you will following the standard norm because that norm is a sellers market mentality.

All that is required for todays sellers is a change of mind set. We all know that the market is flooded with foreclosure homes but we have not changed our mindset and changed our strategy for dealing with it. We need to meet those properties head on and give them a run for the money. Most of the bank owned properties are in poor conditions so your well maintained property stands up well against them the only thing we have to change is the pricing strategy.

Most buyers do not want to deal with short sales and bank owned properties because they are in poor condition many have been vacant for a long time, the power is turned off to them and standing in them for a long time is uncomfortable let alone thinking of owning one. You have the advantage you just need a proper pricing strategy.

Give me a call so I can help you through the jungle of pricing.

My Best,

Vanessa

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