In my last blog, I talked about how homes and sellers are competing with each other in this buyer’s market in three ways. In this segment, I’ll talk about price.
Price is the most obvious competitive factor. The value of a home is not in the seller’s eye, it is in the buyer’s. As a former retailer, let me put this in other terms. When a retailer (seller) purchases and prices a sweater, the seller is, in effect, valuing it. However, if the buyer disagrees with the price for styling, color, or fit reasons, the seller must reduce the price of the sweater so that it will sell. In effect, the buyer has now told the seller the value of the sweater. This is exactly what is happening in today’s Real Estate market.
The result is that the buyer can buy more house for the money, and the seller must be realistic in pricing the house so the buyer agrees with the value. The seller must approach the sale as a business decision, not an emotional decision. The seller wins with proper pricing because they are now able to sell the house.
Research shows that homes priced too high will not only take longer to sell, but usually achieve a lower sale price than similar homes that are priced more realistically. I like to tell clients to price their house where they honestly think it will sell, and be prepared to reduce the price, as previously agreed, if there is no interest or activity.
What is the second way in which homes and sellers are competing with each other? Check back on this blog for Segment Two of this series!
Posted by: 
Mary Jane Benedetto
