One of the most common mistakes sellers make in this market is overpricing their home. It is human nature to think ours is better than the others. In real estate however, the numbers speak for themselves. The quote, “Liars figure, but figures never lie” seems appropriate.
The biggest risk with overpricing a home now is that every month the home in on the market the price moves farther down, sometimes 1-2% (for Big Bear) per month. Many times sellers start out too high, and then reduce only to see that they are still be behind the real price. They continue to chase the market down, never getting low enough to get ahead of it, in a what can be a frustrating process.
It is similar to missing a train, a train filled with the right buyers. And then moving on to the next stop, only to see the train has already left the next station. You need to get ahead of the train.
So what’s the best way to get a property sold in this market? Get in front of the market from the very beginning. Get to the train station before the buyer train comes through.
Check out the video below for some more of my thoughts on this topic.
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Pricing A Property In Big Bear – Follow Your Real Estate Gut
November 23rd, 2008 at 9:34 am
Thanks Linsey.
I don’t believe the price horse will ever get beat enough because until sellers understand that the price must be right, or they will not sell. And the majority of the sellers in this market either don’t understand it, don’t want to accept it, or can’t sell for the right price. Like you said, if you cannot price it right, don’t sell right now, wait.
Selling in this market may feel like you were run over by the train, not catching it. It is what it is, you just have play by the real estate rules for the time being.
November 22nd, 2008 at 11:12 pm
I think I may have beat the price horse to death on my blog.
The reality in Orange County is that no buyer is going to purchase a home in THIS market unless they can say to their friends around the water cooler at work, “You wouldn’t believe what a great ‘deal’ we got!”
If you really want to sell, pricing at market value is sometimes just not enough. As you said, ‘get in front of it.’ If a seller is unwilling to price that way – it’s best not to sell.
November 18th, 2008 at 2:17 pm
The train is gaining speed…seller’s aren’t moving quick enough. Price below market and stand at the terminal waving your arms frantically, hope the train conductor (buyer) doesn’t drive right past you!
November 18th, 2008 at 1:32 pm
Yeah, I think the key is to get ahead of it, and jump on when the right time comes.
November 18th, 2008 at 1:27 pm
Great metaphor “Buyer Train”, there is one and it run you over if you don’t get out of the way.
Aloha,
Keahi