The tendency for home sellers to overprice their property on the market is a very common aspect of today's residential real estate sales. Also, this phenomenom has always been one of the greatest and most difficult challenges that a real estate agent faces.  How, does one go about convincing a seller that it is in their best interest to be practical and realistic about pricing their home?  To begin, a strategy which relies on over pricing as a means to leave room for negotiations can cause the seller’s home to remain on the market longer than would otherwise be necessary. A strategy that really works is one where the house is priced right, causing it to stand out among the other competition. At the right price, it will not be necessary to negotiate because the other party (the buyer and their real estate agent) will already know that the home is priced to sell, and your agent should be able to point out that “at this price it won't be on the market much longer” (a compelling response!). The buyer's agent will not likely have a convincing game changing response to that statement!  In fact, it will be the buyer's agent that must at that point relate the urgency to accept the sellers price.  Notwithstanding, a house that is priced to sell will bring many more potential buyers through a home, stir up interest, and can even generate multiple offers which generally results in a higher sales price than does an inferior strategy (which is no strategy) that employs multiple and successive price reductions. Providing the real estate agent markets the home effectively, a home that is priced to sell can almost sell itself. However, we have worked with more than a few sellers that tended to doubt our initial advice on market pricing which almost always resulted in them over inflating their price from the beginning and which later was unfortunately followed by several subsequent price reductions over an all too lengthy period of time before realizing an actual sale.  Essentially, the price must stand out among the other competition in order to attract a sufficient number of buyers to view the property.  Think of it as a “numbers game” where “x” amount of visitor viewings (showings) will lead to at least one offer to buy!  If over a given period a home is not being shown, "the market has spoken" and it’s telling the seller and their agent that there is no interest to make an offer at the current price. It is useless to argue with “the market” because “it” has a mind of its own. “It” either works in our favor or it works against us, but for good or bad we are left with the reality to sell or not to sell under whatever today’s market conditions might be and at whatever price will get the job done!  An adjustment to the list price will normally create additional interest from potential buyers providing there is at least a 5% reduction from the previous list price.  However, if a home is severely overpriced it may need to be adjusted much lower than 5% to motivate buyers to come and see the property. A reduction to the list price is essentially a test to find the “sweet spot” or the correct pricing necessary to bring the buyer's to the property. As may be needed, sellers must “lower their price until demand is found”.  Sometimes our sellers will agree to have weekly price reductions until we have an offer.  One thing that is certain, you must have a proven strategy in order to sell your home in a "buyer’s market".  At the present time we are still in a buyer’s market in Fort Worth, Texas (see Greenspan's Forecast and the Fort Worth,Texas Housing Market ).

I would love to hear your comments or response to this blog article. Also, The Christian Group understands the market forces at work in Fort Worth and we employ time tested and proven strategies that work. If you are thinking of selling your home, contact us and set up an appointment for a free consultation today.