Good news: according to the National Home Price NSA Index, home prices have hit a 32-month high! Time to pop the bubbly, right?
Maybe not. David Blitzer, the Managing Director and Chairman of the Index Committee, says that real estate professionals may need to curb their enthusiasm.
“New home construction is now close to a normal pace of about 1.2 million units annually,” he says. “Most housing rebounds following a recession only last for a year or so.”
Just like any other change in the market, you’re better off staying consistent rather than out-thinking yourself with (relatively) short-term market fluctuations.
Or, perhaps you can use this information as a motivation to push through the end of a tough month. It’s your choice. Like so many things in life, your results will be largely dependent on how you process the information you’re given.
Is this a negative or a positive? The call is yours.
The real estate market is dominated by distressed properties. Real estate professionals are competing with short sales and REOs. The best strategy is to price the property right when it’s listed. If the market demands change, then it’s time to lower the price. Here are some things to consider if one of your listings isn’t moving:
You’re drawing few lookers
What are the sales statistics? Why aren’t buyers looking at your home? The answers to these questions may tell you why your listing isn’t attracting potential buyers.
You’re drawing lots of lookers but have no offers
Something is wrong if good buyers are buying other properties. An overly high price may be discouraging buyers from making an offer.
Your home’s been on the market longer than similar homes
How long is it taking similar homes to sell? It may be time to price the home UNDER the market.
You have a deadline
It’s a race against time. The price is not determined by how much money you need or when you need to sell, it’s determined by the market.
You can’t make upgrades
If comparable homes in better condition are selling, buyers are paying less for a home that doesn’t show as well as others. If the money isn’t there for fix-up, then the price must drop.
Sometimes your hands are just tied
The competition has changed
Take a look at recent sales and current listings. You’re competing against the properties priced to sell, not the properties that are priced to sit.
Keep these 6 points in mind when trying to consider whether or not to lower your client’s selling price.
About Larson Educational Services:
Utilizing 30 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online.
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