One of the most discussed topics between real estate brokers and their peers is pricing. Pricing a home to sell is both an art and a science. But why do so many homes sit on the market gaining days on market dust and creating nothing more than frustrated sellers and real estate brokers?
The answer is quite simple: The property is not priced where it needs to be to get sold.
Perhaps it was priced right initially, but the market changed. Maybe the buyer pool shrank and you got caught in that bad timing. Perhaps there was a situation in which a lot of similar product came on the market at once.
Regardless as to why you have gotten where you are the truth of the matter is this:
Your listing is ALWAYS either getting closer to a sale or it is getting closer to a price reduction.
That is the bitter truth. If you have a home listed and it is not selling you need to stop thinking that another day might be the answer to getting the home sold. In fact what the home probably needs is a price reduction.
Every day you have a home on the market, that day must represent either forward momentum towards a sale or forward momentum towards getting the seller to see they are overpriced and need a price reduction.
When a broker asks me to evaluate their listing because it isn’t selling, I can usually see quickly that they have been ignoring the glaring signs that the home is overpriced. Here are some of those signs:
- The traffic was initially good but it has slowed down significantly
- Other homes in the area are newly pending or selling
- Open house traffic is either very slow OR it is very good, but no one is making an offer and no one is following up
- Showings have declined dramatically
- Any offers you have received are super low and buyers don’t see the value to pay more
If the home isn’t selling it is professional negligence to let it just sit on the market and go stale. Racking up days on market numbers does nothing positive for your seller.
Instead, you need to learn how to speak to your sellers and be able to convey MOMENT OF THE MARKET facts to them. Sellers need weekly updates on all changes to the market as real estate markets change DAILY. In fact, having a discussion with the seller during your listing appointment regarding the importance of adjusting the price either after a certain time or after certain clues are left will set the stage for a successful price reduction.
Stop thinking that you can get your listings sold by waiting another day. Another day of non-communication with your seller about the truth of the market is damaging to their sale.
So…are you closer to a sale or a price reduction on your listings? Today is the day to buck up and have that conversation that you need to have.