In our market, there are many homes that have been for sale for over a year, As a matter of fact, there are quite a few that have been for sale for over two years, and when your product is in a declining market, it is essential to know how your property is affected.
There is an old real estate adage that states that there is only one reason a property will not sell, and that of course is PRICE! And if your home has not sold in nearly 700 days, it is time to examine the market again and make any necessary adjustments.
Real estate is a commodity, and price is governed not only by the laws of supply and demand, but also by the availability of ready financing. Even if a seller successfully “chases” the market and gets an above average offer, the deal is often thwarted by a less than generous appraisal.
All serious sellers should get a new CMA every thirty days and make the necessary adjustments. A correctly priced property will sell.
And that’s the bottom line.
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Richard.....I think there are many sellers who want to sell but cannot....they are current with their mortgage payments but upside down with the balance and they think they may get lucky.....short sale is not an option when your credit rating is important and you are able to make the big payment....you just want to reduce that debt.
Richard, I have a house that can't be reduced because of what they purchased it for. A Short Sale won't work either. Some folks are caught between a rock and hard place.
Richard, you are in the middle of having a very funny sense of humor. Two days in a row, you've made me laugh. What happens in our market is that agents take short sales and let them set until they foreclose. It is a very sad thing. The other scenario is that Agents circle the drain in pricing. Sometimes due to the seller and sometimes because they are not on top of the market. Yes, a new CMA would be in order!
Richard, very good advice. It's important to stay ahead of the market. I guessing, some of these homes wouldn't have been on the market that long, if they were priced right. Thanks.
Excellent points, Richard. It is all about supply and demand. I can't imagine anyone with a property for sale for over a year has not really already considered the price!
Barbara...
In light of that reality, they need to expect to go to closing with their checkbooks in hand. Thanks, as always, my friend.
Diane...
But in reality, it won't sell. No buyer will absorb the immediate loss of equity. It's just not going to happen and we have to be honest with our sellers. Thanks so much for the comment.
Jeanean...
So I take it you liked the photo? lol and thanks.
Hi Richard, They are hoping to get lucky. That is not going to happen in a depreciating market. BTW, I can do wonders on that rustic home you have up there :)
Richard, here is the conversation we all dread hearing Broker: it's time to make a price adjustment based on the market...Seller: Why lower the price you haven't even brought us an offer! We haven't brought you an offer because no body is looking at over priced properties.
Richard, this is so true. I am in constant amazement that sellers seem to tune out all the news that says it is a buyers market. I understand that many of them are in a bad situation, but honesty with themselves, with their Realtor would go a long long way.
I've had sellers really suprised that I provide a new CMA every 30 days.
The problem as you point out of getting an above average price, is that the appraisel is going to be below average. Appraisers do not want to stick their necks out at all.
An up to date CMA is an essential part of the communication between sellers and their agents.
Great post Richard!
Please feature this in the group Whacked!!!
I think the house in the picture has been on the market for quite some time.
Hi Richard. Amen.
It always seems funny when a home will stay for sale for years...
The sellers must be VERY patient.:)
Ken
Yes, Richard, the length of time usually comes down to condition and price. Sometimes both. The frequent CMA is a good idea to keep sellers in the game.
Richard, very viable information. I love the picture of the lovely home. It looks cozy.
Richard: You crack me up! Of course, I've come across some sellers who resemble your remarks. The news flash that real estate isn't what it was worth two years ago is a shock to them. Heck, it wasn't worth what they wanted two year's ago, or it would have sold.
Richard,
I love the picture. I try to run comps every two to three weeks to keep up with what is happening in the neighborhood. For sure the buyer's agents know....I just have to have my seller prepared.
Richard,
I would think that they may want to get a new CMA after they have been on the market for six months and then again when a contract is written and presented.
Hi Richard, getting a new CMA to our clients every month is a must, particularly in this kind of market. The one in the picture needs an updated demo estimate.
There is one other reason besides price why a home won't sell. If the owner is crazy or not motivated.
Good morning Richard,
Amen..Amen!! I've always said there are 2 reasons a home does not sell~Price or Condition! In today's economy a CMA every 30 days is a must!!
How about if it's been over 3 months, get a new CMA. Some parts of the market change rapidly and a seller should need to know.
I usually do a CMA on my listings once a month to make sure that we are staying in line with community sales and the surrounding areas.
I agree that it's a good idea for sellers to get a CMA every 30 days at least. For sure after the FIRST 30 days, the golden time.
Cheers,
Robin