There are times when price adjustments are necessary, but failing to respond to market changes quickly can be costly.
Consider Tim and Sue’s situation: Comparable Home A: $1,008,000 Comparable Home B: $989,000 Tim and Sue’s Home: $985,000 Comparable Home C: $985,000 Comparable Home D: $973,000 Comparable Home E: $969,000
Initially, Tim and Sue’s home was priced competitively. However, over the next month, the market shifted:
Comparable Home A: Expired Tim and Sue’s Home: $985,000
Comparable Home B: $979,000 (Reduced Price) Comparable Home C: $975,000 (Reduced Price) Comparable Home D: Sold Comparable Home E: Pending Comparable Home F: $966,000 (New Listing) Comparable Home G: $965,000 (New Listing) Comparable Home H: $959,000 (New Listing)
Now, Tim and Sue had the highest-priced home in their market segment. A buyer comparing similar homes would see theirs as the least attractive deal. Many sellers, like Tim and Sue, do not realize how quickly the market can shift. Pricing a home correctly from the beginning is crucial.
WHY DO THESE STORIES MATTER TO YOU?
Moral of the story: Anyone can lose money in the real estate market.
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