Should you reduce the price of your house when rates are falling? We’re in a recession. The worst since the 1930’s.
Have you heard that yet? So have I, but guess what – we’re still selling homes in Denver!
I’ve said it before, Denver is weathering the storm better than many other areas. It’s not only me and other exuberant Realtors pushing an agenda – read it in the NY Times and see it on NBC – Denver’s stability is news.
Still, our higher priced homes are taking longer to sell and have fewer showings while they’re on the market than the mid-priced homes. Medium priced homes that are overpriced relative to their competition are stalled too. It’s a buyers market!
A seller recently asked, “rates have come down more, why should I drop the price of my house now?” Uh, well Mr. Seller, because if you can’t get showings now, when Mr. Buyer’s purchase power just went up again – you’re overpriced!
I really wish it weren’t so. I wish your home and mine were still appreciating at 10% a year. I wish that you could get “what you need” or “what you paid for it” or “what your neighbors got 18 months ago.” I would love to skip the part of the listing presentation where I tell you your house is worth $400,000 less than you want me to list it for. I have some wonderful listings that we priced 18 months ago that could have benefited from my crystal ball (it’s been on the fritz lately). I might have suggested back then that we not be quite so aggressive.
I’m suggesting it now. Two weeks ago I essentially walked away from listing a house that I’ve always loved when I drove by. I had to suck it up and deliver the news to the sellers what today’s value is. I knew that would be the kiss of death, that they would pick the broker who told them what they wanted to hear. It’s listed now for $250,000 more than it should be.
Strike while the iron is hot. Drop the price until you get showings. After 25-30 showings, drop it again if you don’t have an offer.
I’ve closed 4 sales in the past 40 days – all high priced homes relative to the average in Denver. What got them sold was that they were aggressively priced relative to their competition. As rates go down and buying power goes up, use that to your advantage to gauge where the market rates your house a value. Get your price there and you will sell it.
Surf Denver Real Estate at www.GretchensDenver.com!