Now that we are entering summer there has been a sharp increase in available homes for sale. July is traditionally the biggest month for new listings in San Diego. So now that sellers are facing more competition to sell their home, pricing correctly is even more important. The market will tell you if you are over priced, no more having to listen to that pesky agent. What are the clues?
1. Your home isn’t getting seen.
Buyers are really smart these days and have tons of tools to help them research their purchase. Buyers know when they are seeing a price that is over the market. An over priced home isn’t worth their time. If your home isn’t getting seen it can’t sell. Buyers are telling you that your price is turning them off.
2. You are getting a lot of traffic but no offers.
You will get the highest traffic during the first 14 days your home is on the market. But if all that attention isn’t resulting in an offer, buyers are telling you something. Either the condition of the home is turning them off or your price is. Most buyers understand that they will have to pay something close to asking price for a great home, but if your home is over priced, they won’t even bother trying to negotiate you down to market.
3. Your home has been on the market longer than similar homes.
As I mentioned, buyers are smart and if a home has been on the market for 30 or 45 days when other homes in the neighborhood have sold in 15 days, buyers notice. The first question I get from my buyer clients is “What is wrong with the house that it is still available?” There can never be a good answer to this question from a seller’s perspective. A close examination of why you are still sitting while everyone else is selling is often price related.
4. You have a deadline.
We are finding more and more “motivated” sellers on the market. In real estate speak “motivated” means the sellers need to sell for some reason. Yesterday I saw a home and the agent told me the sellers were very motivated. I have to question just how motivated the sellers really are as the house is at least $25,000 over priced in my opinion. Remember a home is only worth what a qualified buyer will pay, not what a seller thinks it is worth. Your deadline means nothing to a buyer, your price does speak volumes to a buyer.
5. You can’t make upgrades or repairs.
Chances are sellers are tapped out when it comes time to sell their home. Many homes have differed maintenance or are a bit out dated. Sellers are putting their money into a move, another house, retirement or any of a huge number of other pots and don’t have the time, energy or desire to do even basic updates. If this is you as a seller then a price adjustment is in order. I met with a seller recently who told me all about the price of homes selling in his neighborhood in hopes his would sell as high. Problem, his house needed a ton of work to match those sold homes. Condition still matters and if you don’t have the money to make the upgrades be prepared to adjust your price accordingly.
6. Competing homes in the neighborhood have changed.
If your home was listed 45 days ago and since then, 4-5 other homes have come on the market, it might be wise to reevaluate your home and price against these new homes. Real estate is constantly evolving and smart sellers use that evolution to make necessary adjustments.
If you are thinking about selling your San Diego home, contact me for a complementary market analysis so you can see how you stack up against the competition.