Six years after the market peaked in 2006 and prices started to decline, many sellers are still in denial about the current market value of their homes. It is difficult for most sellers to accept the reality of today’s home-sale market, whether they bought at or near the peak and will lose money selling today, or bought decades ago but are still stuck at 2006 prices. One homeowner recently remarked that she was aware that home prices had dropped quite a bit over the last five years, but she felt that her home had not lost any value.
It is hard for homeowners to divorce themselves emotionally from a home they have enjoyed. This is what sellers need to do so they can make rational decisions about a list price that will actually result in a sale. This decision should be based on listings that have sold in your area that are considered comparable to your home. Some sellers go to open houses to evaluate the competition. If you are still emotionally wrapped up in your home, the exercise can be futile. You return home feeling that the other homes are not as good as yours.
Put yourself in the buyer’s shoes. Your house needs to be listed at a price that is enticing to buyers because it represents a good value. In most areas, buyers are buying ibn a market knowing prices may continue to decline before the market fully recovers.
House Selling Tip: Be wary of real estate agents who tell you that your home will sell for a higher-than-supportable price just to get the listing. Then they work on you over time until you reduce the price to market value. Agents refer to this as buying a listing.
Its hard to resist the temptation of trying for a higher price than the comparables indicate. However, you will not be happy if your home is on the market for months with no activity, and each time you drop the price it feels like too little, too late. You can end up selling for less later if home prices in your area are still declining.
Listing your home based on what you want or or need to net from the sale will not motivate buyers to pay more. Buyers pay market value. They will not overpay in today’s market.
If your home needs a lot of work compared with the competition, you will either need to have work done before selling or discount your price accordingly.
For best results, be realistic about the current market value of your home and what preparation it needs in order to sell successfully in this market.
