With absorption (the amount of time it takes a property to sell based on no new additions to inventory) rates of 11 months, this "Buyer's Market" can be a little overwhelming to sellers and agents. For our inventory relocation properties, we are now required to do a new Broker Price Opinion WEEKLY. Corporate owners of these properties want them SOLD. As a result, if there are no offers on a property they are making continuing price improvements (reductions) to make their properties stand out and hopefully attract attention from potential purchasers.
Real Estate is cyclical in nature and prices will rebound and recover. When? you ask. We are beginning to see more buyers shopping. that is a good sign. Most people looking for housing are still interested in location and value. If your property is priced more attractive than the competition and offers value, the chances are it will sell before the others.
This is true for all properties, not just those owned by Relocation companies. This is a different market than 12 months ago and a different market than 24 months ago. Housing purchases are for the long haul and significant consideration should be given for being a place to live in and not just an investment. Long term trends prove that real estate has been and will continue to be a great investment, but not necessarily so for the buyer who expects to "flip" the property in a year or less.
The "Gotta Have" price that sellers want, that's above market, will take a long, long time to be realized. Those days have gone the same road as $1 a gallon gasoline. And while people may not like it, they are going to have to get used to it. They are going to have to be happy enjoying the tax benefits of home ownership and if they achieve something higher than what they paid for their property they should c ount themselves fortunate.
Agents who agree to list properties above the market price will be akin to Professional golfers who can't putt or dogs that chase cars, they will be short-lived. Those agents that engage in this practice have been contributors to the housing crisis we have been in. If these properties were removed from the market, our market would be a more normalized market with an absorption rate of approximately 5 months which is doable.
For those sellers who sell for less than they could have sold for in previous markets, the reward is that they can move up at a discounted price as well. Ask your Buyer's Agent to go over procong for you dso that you can understand the process better.
Our company has been a leader in the real estate business for 30 years and we have built our reputation on service. Now, each of our agents are QSC (Quality Service Certified) trained and certified. this is something that our office does and is not normal in the market we are in. We put down in writing what you can expect from us and ask that you provide a candid report card on our service at the conclusion of the transaction. Every agent and company should aspire to such a goals and hopefully more will in the future.
So what's the Bottom Line of this musing? Price your property correctly and it will sell. How do you know what price that is? Engage one of our agents to prepare a Broker Price Opinion and let them explain the process. A lot of people think that all we do is put a sign in the yard and make a million dollars. Oh, if that were so! Reality is that if your house isn't priced correctly, it will be a long, long time before the house will have any interest at all. And, time is money. If you need to sell, price it right. Let our trained professionals walk you through the process. you'll be glad you did.
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