If Your Home Hasn’t Sold Yet… Definitely Check the Price!
The residential housing market has been hot. Home sales have bounced back solidly and are now at their fourth highest pace over the past year. Demand has remained strong throughout spring as many real estate professionals are reporting bidding wars with many homes selling above listing price. What about your house?
If your house hasn’t sold, it could be the price.
If your home is on the market and you are not receiving any offers, look at your price. Pricing your home just 10% above market value dramatically cuts the number of prospective buyers that will even see your house. See chart below.
Bottom Line
The housing market is hot. If you are not seeing the results you want, sit down with your agent and revisit the pricing conversation.
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In this hot residential real estate market, if your home has not sold then it is certainly not priced according to the location and condition of the home. There is a shortage of inventory, and it is a seller’s market, with sales prices increasing each month. However, you still have to have your home priced according to what the market will bear.
I keep hearing about how ‘hot’ the market is and with multiple offers. What they don’t tell you is this is in correlation to area. There are hot areas and not so hot areas. So when sellers are seeing this and their home is not moving guess who gets in trouble, and it’s always the agents fault when a home doesn’t sell. I am sure you can relate. So in the future when an article is talking of a ‘hot’ market, be sure to say which areas those homes are located.
I completely agree with you! It is NOT hot in several areas. Our listings have doubled in Katy, Texas in the last month. Houston market is directly related to the oil industry. We all know what is happening and has been happening to the oil industry the past 3 years.
The problem for most people who can’t sell their house in this “hot” market is that other people in their neighborhood sell well below market value. Then there are the foreclosures that make their properties look overpriced. There are also the brand new houses that are being built rapidly and sell for much less per square feet. I know that if I was to put my house on the market for $30,000 less than its worth, than of course it would probably sell rather quickly. However, since I currently don’t NEED to sell my house quickly, why would I want to settle for so much less…especially since I have to pay the realtors 6% and I already put at at least $15,000 into repairs and upgrades over the past 9 years?
You are absolutely right, all Real Estate market activity is related to where the property is located, condition and demand. The right agent makes all the difference in the world. He or she should know exactly what the fair market value is for the home and advice the homeowner accordingly.
Area is relative as well as price point. In western suffolk, there is a brisk market up to the high fives mid sixes. Listings above that, more higher end, are still seeing greater days on market.