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ERA Justin Realtor professional Ilene Harpuder services the needs of buyers and sellers throughout Bergen, Passaic, Essex and Hudson counties. Her involvement in hundreds of company transactions certifies her as one of the firm’s corporate relocation specialists for the nation’s largest relocation firm, processing transactions for Fortune-500 clients. A full-time professional with the firm she offers suggestions for real estate market pricing in 2011.
Making a Price Adjustment for a Successful Real Estate Sale
In the real estate markets several years ago home pricing downward adjustments were in most cases not even a consideration because pricing continued to rise quickly. Many sellers enjoyed the quick escalation of pricing and values. The real estate market has returned to, what experts consider now as, the ‘new normal.’
Today’s sellers are now resetting their expectations to be successful in the sale of their house. With a minimum of ten months of real estate inventory available, unless a house is priced to the current market, it will not sell. Buyers simply move on to one of dozens of other houses available to them. The old theory of listing one’s house many thousands above the market to have negotiation room is gone. When buyers see one house similar to others, multi thousands higher they don’t choose to view it, but just move on to others.
It’s important to list a house at a price that buyers will perceive as a good value and the best buy in the neighborhood. Overpriced listings sit on the market. Buyers simply overlook them.
Ilene Harpuder, a Realtor professional with ERA Justin Realty stated, “Some national markets have not stabilized, prices continue to moderate downward. Educated buyers who realize that they can’t time the market and who want to take advantage of low interest rates are moving ahead with their home search. They are very selective and are buying for the long term. They will wait for the right home and won’t pay over market value. Some sellers are reluctant to consider a price reduction after only a couple of weeks on the market, but this is often the best strategy. Buyers and their MLS agents focus on the new listings. If you bring your home on the market priced too high, but it’s otherwise a house in good condition and in a good location, a price reduction early in the marketing period is likely to attract the attention of agents and buyers who still have the listing fresh in their minds.”
Jennifer Darby Metzger, Broker Co-owner added, “Before accepting a listing, we provide a comprehensive (CMA) comparative market analysis which is thorough in scope and will determine the true market value based on current comparable sales, as well as expired listings that did not sell, usually due to overpricing. We further provide a complete marketing effort on each of our listings, including print media, over fifty national and regional searching websites and individual blogs on our listings. Nearly 90 percent of today’s homebuyers use the Internet to search for a home. Our email alerts to our buyers notify them when a new listing is submitted to the multiple listing service (MLS) that meets their search criteria.”
Ilene continued, “Depending on individual circumstances a seller may need to lower their price more than once, particularly if one waited months to make a price adjustment. If market values have moved down since listing, a seller could find themselves out of sync with the market again, considered in the industry as ‘chasing the market downward.’ Don’t rely on what neighbors are asking for their homes. If they aren’t selling, they are probably overpriced for the market also. Rely on sales of comparable properties that closed after you put your home on the market.”
During 2011, Ilene and ERA Justin Realty will continue advising buyers and sellers with dedicated service to current market swings and conditions and what they should do for a successful sale. It is not what a seller believes their value to be, but what a buyer is willing to pay for a house and most importantly, the value set during the financing appraisal based solely on current closings.
Jennifer concluded, “There is a difference in real estate companies. Attending on-going advanced training, seminars, round-table discussions with industry leaders and focus groups is what we continually do at our firm. We believe, in order to exceed buyers and sellers expectations of what a real estate agent is about, we don’t learn just the basics. We want to learn, know and teach much more than is ever expected of us. In that way, we hope everyone holds us in the highest regard. To prove that, our sellers have put their thoughts in writing. We have on file for the asking, ‘Real Estate Results In Writing’ our report of nearly 800 testimonials from our very satisfied sellers and buyers.”
