Jul. 23, 2007 - Pricing Homes Is Our #1 Challenge

I dubbed 2007 the year of the Never Ending January.  In January of almost any given year, stale inventory from "the previous year", which on Jan 1 could be two weeks ago, sits - while everyone runs for "the hot NEW listing".

In most years, that January market fades into "high season" long before this time of year.  But in 2007 we seem to be having a never ending January.  New listings are either gobbled up quickly, or left to go stale and rot along with the rest of the stale inventory, some of which is still hanging around since 2006.

Is the market slow?  I can't say it's slow, since my most recent seller closing had its best offer in less than 12 hours, and sold at top dollar.  What we are seeing are buyers being exceptionally discerning, and looking really hard for value.  We are also seeing buyers saying, at these interest rates THAT just isn't worth it.  The rise in interest rates, though only up a fraction, has had an impact on people's willingness to buy. 

They will still buy a property, but they are also willing to pass it by if the seller is being unreasonable as to price, or if negotiations go back and forth into a first or second counter.  Price and condition of property has NEVER been more important, in recent history, as it is today.

Both buyers and sellers have to really roll up their sleeves and be careful about valuing the property they are selling or buying.  There is no margin for error!  The days of being "about right" as to home value are OVER!  A hair off as to price can make the difference between "in escrow" and being thrown on the pile of "no one wants 'em".  And once you land in the "stale inventory" pile, it's really, really hard to get out.

Not a good time for agents to "be nice" to sellers and let them "try their price" without strong warnings regarding how that stance may cost them $10,000 or more somewhere down the line.  Consumers need to bite the bullet and find an agent they may not like, who will give them the cold-hard facts.  Being a little bit wrong right now, can cost you plenty.

Jul. 24, 2007 - re: Pricing Homes Is Our #1 Challenge

Jul. 24, 2007 - re: Pricing Homes Is Our #1 Challenge

I don't have your email address, so here's the answer.

I used Talkr which still works, but I'm pretty sure that Talkr was bought out by someone else.  You should be able to find them by Googling Talkr, but I'm pretty sure the name has changed.

I could probably get your email address if I tried real hard, maybe calling my blog hosting company.  But hopefully you will see the answer here.

Jul. 26, 2007 - re: Pricing Homes Is Our #1 Challenge

Ardell

Nice post!  Pricing homes can indeed be a challenge.  I live in the Florida market where there is a glut of inventory, yet I'm still finding some sellers are unwilling to price their properties at the current market value.

I take sellers back to 2003, give them a hard look at the numbers, and if their not willing to list at the recommended price, then I simply won't take the listing.  Most of them will come around because they see that I have a good track record of selling homes.

Good luck in Seattle.  I'm heading that way in August for my Pacific Northwest Fix.

Jul. 26, 2007 - re: Pricing Homes Is Our #1 Challenge

Oct. 20, 2007 - RE: Pricing Homes Is Our #1 Challenge

Well looking back now this more true than ever. There is no room for error when the market is still dropping. When things were reversed, it was easy selling homes because when agents made a mistake and priced the home too high all they had to do was sit back and wait and eventually the market would catch up.

Today even data a few months old can be difficult to rely on. Pricing has certainly become more of an art. In many markets you need to be below what rhe analysis tells you right from the start.