Home Selling - Price Matters!

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.

Tips for Success in A Sellers' Market

By now you've heard it's a "sellers' market"! There are fewer homes for sale everywhere including Wayland, Sudbury, Concord, and the towns west of Boston. Sellers are getting multiple offers for their homes, some in just a few days, and we're seeing sale prices higher than asking again. All good, right? Of course, everyone has been waiting for the market to turn!

Well, maybe not everyone! Some of you who thought you would wait until the Spring to get moving are now finding yourselves in unchartered waters and it's a bit overwhelming.

Here are a few tips to you succeed:

1. Buyers and Sellers: Be prepared; get pre-approved for a mortgage before you look at houses. Sellers, you are most likely going to buy another home. Before you put your house up for sale, know what you can afford to buy.

2. Sellers - make sure you have a somewhere to stay in case you sell before you find a new home. Can you stay with relatives or friends? How about a short-term rental? That is going to be difficult to find in the suburbs, especially if you have children and or pets. Check out your options before you list your house.

3. Sellers - make sure your home looks its best, make all necessary repairs, and above all price it right! When the media tells you it's a "sellers' market" it's easy to think you don't have to fix things and that you should ask a higher price. Home buyers in any market expect your house to be updated and with all systems working, especially when they're paying higher prices. Even in a bidding war, they won't overpay! As busy as the market is, I'm still seeing price reductions and expired listings that did not sell.
houses.

4. Buyers - don't waive the mortgage contingency unless you're paying cash or are 100% your mortgage positive that your loan will be approved including the lender appraisal. If you're going to waive the home inspection make sure you really understand the condition of the house. Even if it means having to wait for another house; it's not worth losing your deposit or finding out after you move in that the house needs repairs you can't afford. Common sense should alway prevail.

5. Buyers and Sellers - Contract with an experienced and well-educated Realtor who understands how to negotiate the ins and outs of the current market and can make sure you have all the information you need to make the decisions that are right for you. In this faster-paced market, stress is high and every detail matters. Your agent needs to be there for you from beginning to end and every step in between to ensure the process ends in success!

More at www.marilynmessenger.com - easy home search, market reports for Wayland, Sudbury, Maynard, Stow, and Acton MA; expert advice from an experienced broker.