There was a fantastic article in The Washington Post the other day in which they were talking about needing to lower the price of the homes currently on the market and homes that will be coming on. I have used this same language when speaking with my clients. They need to understand that just because you purchased the house for "X" doesn't mean that you will get "X" out of it. Especially if you purchased in the years where home prices skyrocketed and every one got loans to purchase these "inflated" homes.
It stated that: Federal tax credits for home buyers, which expired in spring, gave sellers a boost. Home sales surged, and values edged up. The worst appeared to be behind us. But since the deadline passed at the end of April, housing has faltered. Job insecurity, tight credit and consumer confidence are undermining a sustained recovery, despite the lowest mortgage rates in decades. And many economists expect prices to decline another 2 percent to 10 percent followed by "a long, flat bottom," said Stan Humphries, chief economist at real estate Web site Zillow.com.
That means sellers must set their price with precision or risk languishing on the market. Here's the disconnect: The vast majority of sellers believe their homes are worth more than what their real estate agent recommends, according to HomeGain.com. At the same time, most buyers think for-sale homes are overpriced.
I loved the fact that it said "If no one shows up for an open house, if no one calls and if there are no offers, then the price is too high. That means it's time to make a meaningful price cut. Cut with a machete, not a butter knife. Dinky reductions become a scarlet letter on your front lawn, and would-be buyers will think you're not serious."
If you are a serious seller and you have not had a lot of traffic in your home, CUT, CUT, CUT. This may be below what you paid for it, but in today's market, you need to be one of the best priced homes out there in order to sell.
Please sellers....take a good look at your property and how much you are selling it for. Have your agent pull all comps, recent sales and expired. If you need to, have your agent take you to tour the comp. homes in your area to see what you are up against. Dress your home to sell. Take any personal photos down, update as much as you can without breaking your budget and then PRICE IT RIGHT!! Listen to your agent. Times are changing and so is Real Estate.