Lake Norman Area Real Estate Blog
Wednesday, June 18 2008
Today’s market conditions make it imperative for sellers to price their homes properly, particularly in light of the abundance of homes entering the market on a daily basis. Market absorption rates continue to increase, and experts disagree as to when we will begin to see substantial improvement in the real estate market.
Sellers who overprice their homes will likely cause buyers to not see their home because buyers will make the assumption that it is out of their price range. Today’s savvy buyers most often work with buyers’ agents who work to educate them on home values and current market conditions. Serious buyers quickly become very knowledgeable about properties in their price range and look in the price range that is determined by the amount of their down payment and ability to make monthly payments. If a seller’s property is not priced correctly, the down payment and monthly payment requirements will not be competitive.
Further, buyers purchase by comparison shopping, and a property that is priced above the competition does not compare favorably and may cause appraisal problems, something that is becoming more commonplace in today’s market. Buyers make the assumption that something is wrong with a property that languishes on the market or, they think, it would have already sold.
Experts agree that in order to obtain proper market exposure, it is absolutely necessary to be competitive in price, terms, and condition with similar properties so yours will sell faster and at a fair price.