It was just (6) months ago when I sat with a lovely couple ready to sell their rental. Their tenants had moved out and they were ready to let it go…..just tired of being landlords really. The rental was well maintained, located in a great neighborhood, and would make a great first time buyers home. They were set upon a price that was $20,000 above the recent sales in the neighborhood which were right at about $330,000. I tried my best to convince them that while setting the price higher so that ‘people could offer less’ sounded logical, we could not foresee what other sellers would do. I pointed out that they were starting at $349,000 and currently there were two similar homes listed for $339,000. “We have time, and we aren’t going to give the property away.”
HOUSTON, WE HAVE A PROBLEM….
Perhaps you can write the rest of this post for me. The two homes that were listed $10,000 less than my clients, sold for $10,000 less than their asking price or roughly $20,000 less than my clients listing price. Surely those folks had just given their property away. They were convinced that their home was better….it had a nice view…they had a paid a premium for it new back in 2003. But facts are facts right? They reluctantly agreed to lower their price by $20,000 to $329,000. “Let them make me an offer and I will consider it…I don’t want to just give it away.” Yep, you guessed it. Another home came on the market at $319,000….$10,000 less than their reduced price.
Chasing the market down is painful and rarely results in a sold home.
The average selling price of a home in Folsom was $336,000 in February 2011. Just (6) months earlier, the average selling price in Folsom was $379,000. That’s an 11.3% decline in the average selling price in just (6) months. This is not to suggest that the price of every home has declined by this factor in the last (6) months, but I feel safe in saying that prices continue to decline.
It is painful to be a seller right now–I won’t argue with that–but when you have made the decision to sell, you need to think like a buyer and price your home accordingly. The pain of watching other homes sell around you while the market continues to decline is much worse than setting an aggressive price and getting it sold.