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October 31, 2011 Price, just how important is it?

Clayton Homes

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I am a Realtor.  How important is the price in today’s “challenging market”.  Let’s be honest.  This market is tough at best and awful at its worst.  Price is almost everything.  Have a traffic street in your backyard, have not done any updating, have a power line in your yard or possibly 1950’s pink and avocado tiles in your bath?  Almost any issue can be resolved in the market by PRICE.

We had a listing within the last six months.  This home had an external influence that did impact value.  The home was priced higher than similar comarables.  Our office strongly suggested that this was not the proper price point.  Within the first four weeks, the home had minimal showings.  The sellers were very disappointed but reviewed their list price and reduced it to be competitive.  Over the next four weeks there were about 4-6 showings every week.  Towards the end of the month there was one contract submitted and several interested parties.

A typical buyer today has an abundance of information at their fingertips.  Most buyers have a good idea about home values and when a particular home is overpriced.  It is IMPERATIVE in today’s real estate market to be competitive and price your home correctly.

The absolute best strategy is to lead the market.  If the market is on a downward trajectory, look at the comparable homes objectively and price your home slightly below the competition.  You will get showings and be able to sell your home.

Above all, when negotiating, understand your position.  In most circumstances today the buyers have the upper hand.  This does not mean you should “give your home away” but making your home the most attractive in a cluttered field.

In your market, price your home based on the competition.  This must be fluid (ever changing), not a static decision.  It must be constantly evaluated based on the market forces at that moment in time.  If you have your home listed for three weeks and the next day another 4 homes comes on the market.  You must reevaluate.

Constant care and updating will reap great results and get your home sold.

Have a question about real estate, e-mail me at s.carter@c21carter.com.

About the author:  The above real estate information on “Price, just how important is it?” was provided by Scott Carter.  Scott can be reached via e-mail at s.carter@c21carter.com or by phone at 1-877-221-8787.  Website: www.century21carter.com

Thinking of buying or selling a home?  We are a full service real estate agency. Call me for a consultation about your market area and home values.

I service the following counties in New Jersey

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