Here's a Daring Strategy
July 21, 2008
Back in the 1990s downturn in real estate sales. a book came out suggesting that the way to sell your property was to price it 10% under the price shown in a market analysis. I don't remember the name of the book nor the author, but I do remember suggesting the strategy to several sellers. Unfortunately few dared to try the strategy but rather listed at the market analysis price and after time kept lowering their asking price. For the few that tried the market value minus 10%, the strategy worked more often than not and in fact often led to multiple offers and the seller ended up with the market price.
This strategy would be useful in this market. Yes, it would probably make the decline in value in the overall real estate market happen more quickly, but the sellers could get on with their lives.
In fact, a few months ago I read a posting on the Redfin Sweet Digs blog that suggested that in the present market conditions, sellers should definitely consider the minus 10% list price, The poster also suggested that that price was still based on looking back at sales. To adequately attract buyers, sellers should consider applying an additional minus 10% to their list price.
Interestingly, there was an ad in the LA Times on Sunday that gad a builder reducing the asking price of a new $2,000,000 home by 50% to an ask of $1,000,000. (The actual prices were slightly different.)
To the sellers who dare, buyers should come. There is already evidence that bank repos that are listed at a discount from the market value do receive multiple offers, particularly in the under $350,000 market. Higher priced sellers who truly want to move, should seriously consider this strategy.
Back in the 1990s downturn in real estate sales. a book came out suggesting that the way to sell your property was to price it 10% under the price shown in a market analysis. I don't remember the name of the book nor the author, but I do remember suggesting the strategy to several sellers. Unfortunately few dared to try the strategy but rather listed at the market analysis price and after time kept lowering their asking price. For the few that tried the market value minus 10%, the strategy worked more often than not and in fact often led to multiple offers and the seller ended up with the market price.
This strategy would be useful in this market. Yes, it would probably make the decline in value in the overall real estate market happen more quickly, but the sellers could get on with their lives.
In fact, a few months ago I read a posting on the Redfin Sweet Digs blog that suggested that in the present market conditions, sellers should definitely consider the minus 10% list price, The poster also suggested that that price was still based on looking back at sales. To adequately attract buyers, sellers should consider applying an additional minus 10% to their list price.
Interestingly, there was an ad in the LA Times on Sunday that gad a builder reducing the asking price of a new $2,000,000 home by 50% to an ask of $1,000,000. (The actual prices were slightly different.)
To the sellers who dare, buyers should come. There is already evidence that bank repos that are listed at a discount from the market value do receive multiple offers, particularly in the under $350,000 market. Higher priced sellers who truly want to move, should seriously consider this strategy.
posted by shirley harry at 8:26 AM
0 Comments:
Post a Comment
<< Home