Chasing the Market Down . . .

When a seller is considering listing their home for sale, the seller desires to net the largest amount of money for the property. However, an important consideration is that the home is worth exactly what someone is willing to pay for it at that specific time.

There are many considerations in what most directly affects the value of a property. The property’s value will increase and decrease along with the overall economy and market conditions.  Those are factors that cannot be influenced. Recently, the value of homes all over the country have been influenced by the economy, mortgage rates, foreclosures and overall general apprehension about purchasing a home in these conditions. Another consideration is the general condition of the property.

The specific value of a home only matters when you want to sell it or borrow against it.  The value of your property is worth exactly what a buyer is willing to pay and what you are willing to accept at the time you sell it.

That being said, it is imperative to price it competitively right when it is initially listed. If your home is priced too high because you are convinced that you can achieve more money . . . your home is different, your home has been upgraded or improved upon. The reality is – homes are worth so much per square foot, and this number can be determined by consulting your Realtor ®. If the price per square foot is not a number that you can live with, and you can afford to stay where you are, then don’t sell. Wait until the market yields you a number that you feel is more competitive and worthwhile. However, if you have to sell, then pricing it too high may end up costing you more money in the long run as you wait for your home to sell.

If your home is priced too high to start, then the seller may have some showings initially, however, as the showing start to dwindle, and then you may consult your Realtor ® to determine the status of your listing. Then, after the home has been listed for sale, consider if other “like” properties are listed in the same neighborhood for less, and then they sell! Imagine how this will affect your listing. This may cause the listing to become stale.

Also, if the home is priced too high, you may receive “low ball” offers. Low offers may be considered to be offensive, and do not necessarily need to be responded to, however, if the offer is within the realistic value of the home, then this offer should be considered.  These offers are probably sending you a message that your property is not priced competitively. If you decide to lower the price, but not enough to be in sync with the market, then you may end up chasing the market down. No seller should be in that situation. As the home prices decrease, then they lower the price – but not quite enough to be in alignment with the “market”.

Look at your Comparative Market Analysis. These comparables should be considered carefully. Review at the listing price per square foot, and the sales price per square foot to ensure that you are in the game. If you need to adjust your price, then do so, but be realistic. Consult with your Realtor ® on a weekly basis to ensure that you are on track to achieve your goal of selling your home. Don’t be guilty of chasing the market down . . .

If you are considering placing your Newport Beach home on the market, then please consult with me for more information about your Newport Beach property. I will provide you with a comparative market analysis for your home, and you will be able to compare thefeatures of your Newport Beach home to others in your area. This will assist you in achieving a realisitic and competitive sales price.

For information about Newport Beach luxury homes, Newport Beach Real Estate, please contact me at Sharon@sharonintheoc.com.