In a comment I made on home stager Sharon Tara's post, The Secret To A Fast Home Sale: Two Words..., I shared an approach I use with people who have a home to sell within Sussex County NJ. Sharon encouraged me to do a post on it, as it might help others as well in discussing list prices with home sellers.
I commented: My phraseology is "The buyers are going to cast their votes. No showings means they have voted AGAINST your price. If you want your home to be elected instead of the competition..."
Even at my first meeting with someone who wishes to sell a home, I discuss general market conditions. Prices continue to decline in Sparta, Hamburg, Hardyston, Branchville - right down the list of all towns in Sussex - and are predicted to drop for the foreseeable future. While I will not have solid comps until our second meeting, I introduce them to my "democratic approach to list prices."
Basically, I let them know it is their right to set the price at which they will sell their home. A listing means they throw their hat in the ring and enter the race against all candidates - the other homes for sale. If they and I agree that I'll list their home, my job is to manage the campaign. Home buyers are the voters. We need to appeal to those voters.
Nothing earth shaking here, I admit. The real impact is when we're discussing the initial
list price and potential reductions down the line.
If we aren't getting potential buyers to look at a home, I remind the sellers that the buyers have voted. "Buyers clearly are telling us that they aren't interested in considering your home at its current price. Rightly or wrongly, the buyers do not perceive it as good value and they are looking elsewhere."
It does not always convince the homeowners to lower the price immediately, but they always begin to reevaluate their campaign platform...
Copyright © 2009, Irene Kennedy, all rights reserved. This blog post represents Irene's personal musings.
UPDATE Spring 2010 - Irene Kennedy has moved to Pohatcong and works from the Phillipsburg NJ Weichert office now. She is proudly bringing her experience and insight to those with homes for sale and potential buyers around Warren County NJ.
to the transaction process. Banks already have the comps in hand and are WAITING to make a decision on an offer - they particularly favor offers where the closing is scheduled within 30 days. From offer to ratification is pretty quick; 3 - 4 business days in my NJ REO experience. Lengthy back-and-force negotiations would increase that but it does not take long at all to get an answer on an REO. Once I had to wait over 24 hours for a counteroffer on an REO; my personal contact was sick and I opted not to hit the "for immediate help" key.