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| Price Reductions Concord, Acton, Sudbury... |
The housing market started strong in 2020 with media reports about low inventory, higher prices, bidding wars/multiple offers, crowded open houses, and houses selling in a day or two! And, there were the letters and calls from real estate agents with some even knocking on doors to say they have buyers for your home. Wow, it's a seller's market! So why wouldn't a home-seller think they could ask whatever price they want?
Pricing is based on supply and demand and clearly we have been having supply shortages for the past couple of years and with COVID-19 inventory is even lower; and yes, there are still buyers ready to buy! The truth is though, that even in a hot seller's market, buyers still have their limit and they will not make an offer on a house that they perceive to be over-priced.
Why? Because people are too polite to make a low offer; they don't want to insult anyone. Or, they assume that sellers expect list price or close to list price and won't be willing to negotiate. Making an offer on a house is a big decision and there is a lot of work and emotions involved. They do not want to be disappointed and they don't want to waste their time. Buyers want to make offers that they believe they have a good chance of being accepted.
What about more marketing? Some sellers will ask their agent to do more marketing - more pictures, more advertising, more open houses - of course, open houses are not an option for now and may not be for a long time. Sure, these activities may help get buyers' attention but ultimately PRICE is the most important part of marketing. Price is what gets a property in front of the right buyers, not just people who are looking...
Home sellers who over-estimated the demand for their property have always had to adjust their pricing even in so-called sellers-markets. 2019 was a sellers market in Sudbury and there were 148 price reductions on single-family properties. In 2018, also a sellers market, there were 150 price reductions, and year-to-date as of 4/23/2020, there have been 32 price adjustments/reductions on 28 homes for sale in Sudbury. Data in Concord and other nearby towns is similar. Click for real-time price reductions.
Pricing a house for the market is not an exact science and although we can look at "comps" - comparable properties that are currently for sale along with sales pending and closed sales, but the data does not always reflect what a buyer would actually be willing to pay. Market conditions are fluid and are always changing. The Corona-virus is certainly teaching us that we can't depend on how markets behaved yesterday, all we can do is adjust.
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Thinking about selling your home? Although no one can predict how future markets will react, there are always things that need to be done to plan for your move. Understanding your options and having a solid plan in place will be the keys to your success when the time is right for you. It's never too soon to start planning, so let's talk soon. Conctact me anytime - marilynmessenger@realtor.com; 508-596-3501. Get the latest market information at www.marilynmessenger.com.
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