Should you sell? The numbers will not lie!
The difference between myself and other agents? I am a real estate investor, so I am always looking to BUY. Other agents spend a majority of their time practicing scripts so they can SELL. I am not saying that is a bad thing; everyone conducts business differently, but I see some instances where the better advice to a client would be to hold the property for a little while longer.
If you want to sell right now, you must price your home in line with what the market numbers tell us.
On the other side of the coin, if time is on your side you can wait to get that extra cash you want. If you do not have deadlines or obligations that require a sale within a reasonable time never let anyone persuade you to sell now.
Let me share a conversation I had with a seller today. Every morning I have For sale by owner properties in my inbox, and every day I evaluate these properties as potential purchases. This particular seller has a condo in the Tysons Corner area. His asking price on craigslist is 363k. I ask him for pictures since his ad has none.(Common FSBO Mistake) When he sends me photos, he states that he can “make the deal sweeter” for me if I purchase quickly.
When I begin my research on the multiple listing service (MLS), a resource that only licensed real estate agents (and a few other professions such as appraisers) have the ability to access. The first thing I found was the property I was researching, and it is listed with an agent at 374k!
This seller obviously wants to sell within a reasonable time frame, because he is already discounting the property by 11k!
Let me share some quick numbers that I found in less than 30 minutes. You decide if this property is priced to sell right now. All properties are virtually identical.
There were four properties SOLD in the building recently.
Prop 1 sold in 50 days for 325k 2 bed 2 bath 1069sq ft
Prop 2 sold in 70 days for 340k 2 bed 2 bath 1074 sq ft
prop 3 sold in 75 days for 321k 2 bed 2 bath 1074 sq ft(bank owned)
Prop 4 sold in 57 days for 325k 2 bed 2 bath 1069 sq ft
There are five properties ACTIVE right now including subject property
Prop 1 Asking price 349K (bank owned) 1180 sq ft 173 days on market
Prop 2 Asking price 350k (possible short sale) 1074sq ft 131 days on market
Prop 3 Asking price 384k 1074 sqft 106 days on market
Prop 4 asking price 364k 1074 sqft 63 days on market
Subject property: Asking price 374k 1069sqft 86 days on market
There are no properties with pending offers.
Compare the “solds” to the “active” how long do you think the subject property is going to sit on the market?
This information took a very short time to compile but is valuable to both Virginia home sellers, and Virginia Home buyers. This info will give you an idea of how much time it will take to sell your home at a certain price, and as a buyer, it will let you know if the property you love is priced too high.
The two most probable reasons this property is not priced in line with the market:
1. The real estate agent is not providing the whole picture of the market to the client, and not providing education on the consequences of overpricing.
2. The Seller refuses to price the property in line with the market for various reasons.
I hope this short post gives you a little more insight into how important price becomes in relation to the amount of time it will take to sell your home.
As always if you have questions about anything I have written about do not hesitate to use the contact feature on my website to get in touch with me. I will be happy to answer any questions you may have.
All the best,