Home buyers today are of the “Bank-Owned/REO Mentality.” They want to buy something with that kind of price tag, regardless of who owns it.
I came across an article from CNNMoney that really hits home on what is going on in the current housing market. If you want to sell a home in this market, no matter how much it hurts, you need to price your home like a bank-owned or REO property.
That is your competition.
The tough part about this is that bank-owned or REO properties are priced 20-40% less than the non-REO or bank-owned properties.
The first and last paragraphs of the article spell it out pretty clearly:
Selling a home in this market is hard enough. Competing in a neighborhood flooded with foreclosed homes that are heavily discounted is nearly impossible.
For desperate sellers, that means keeping up with highly-motivated banks and steeply-falling prices – no matter how much it hurts.
Sure, not every seller is going to be desperate, I get that. But if you are not desperate, or willing to price your home like you are desperate, it is not the time to sell.