Real Estate markets change and market specific strategies should be employed for the market that you are in. While some might say that we are approaching a balanced market I can say that we are still very much in a Buyer’s Market.
In a Buyer’s Market pricing is critical. All Sellers naturally fear underselling their house and are wary of the Realtor who is closing for a lower price and the quick sale. In a “Buyer’s” market the greatest risk is in overpricing and the Realtor who is in the trenches daily understands this clearly.
Pricing a home at a perceived “fair market” value in a Buyer’s Market can actually net a Seller less than if the house or property was slightly underpriced. Time and time again I see properties being reduced and reduced again and in time, being undersold. Pricing it right can be a tough pill to swallow for a Seller and a tough job for the Realtor to convince the Seller but as a trained professional it is the Realtor’s job to do just that.
Sellers must be ahead of the market and this means pricing below your competition in a Buyer’s Market. If the property is not priced properly a Seller may fall victim to chasing down the market and lose the margin that would have been gained by pricing it right in the first place. Then of course there’s the length of time taken to end up with a sale and delay to your plans. “We’ve got lots of time” does not mean you’ll put more money in your pocket.
Price it right and you won’t be undersold.