Would you like to sell that house or wait?
I ask you, when is a house that is listed for sale, NOT for sale?
How about when it's NOT priced to sell?
It's no secret that metro Detroit homes can sit for months, sometimes years. Our market is flooded with sellers who may or may not be selling for a good reason. Some are selling because they "heard" market values were falling. Some are selling because they are empty nesters. Some are moving south. Some sell because they have inherited "grandma's house" and need to move it. Some are looking to trade up to a bigger, newer home.
But what happens to the market when a hungry REALTOR® puts up a "for sale" sign and waits for a buyer? The market becomes deflated. The seller then hopes that an uneducated buyer will find their property irresistible. If a buyer comes along, will it appraise? Will it come to a closing?
But today, many sellers are in a hurry to sell. Faced with a possible job layoff, plant closing, budget tightening etc. sellers are caught in a pickle. Do they list it for yesterday's price or today's price? What will tomorrow's price be? All of these things bring pressure to the market.
Buyers
What do you think? Do buyers want to jump in and buy at yesterday's value or tomorrow's fair market price?
Dangers of waiting
I believe that by waiting for that "right" buyer to show up, sellers face an uphill battle. They may be required to pay double mortgages, double taxes, double utilities and insurance.
So I encourage you, when contacted by a seller, ask them if are serious about selling now. Would they like to sell, want to sell or need to sell?
Next question to ask, do you want to price it to sell, or are you hoping that a cash buyer comes along. Waiting for a buyer can be a dangerous strategy.
With few buyers in the marketplace, the more homes on the market, the lower the prices you can expect. This causes a downward pressure on a market that is ailing.
So I advise you to have your sellers to wait to sell, if they can afford to. Don't add to the number of homes already on the market.
Don't price the house for sale, if it's NOT priced to sell!
Hi David. I noticed you were from my old stomping grounds so I always like to hear what's going on around there. Sorry to hear that homes are still sitting for long periods of time. It has taken a year for my home in Jackson, MI to finally get an offer. It's a nice home and I accepted the offer for many of the reasons you listed above. Well anyway, thanks for the blog.
I have been telling people to suck it up for another 6 months if they possibly can.
The market here in Las Vegas is so flooded that we don't need anymore unnecessary listings. I will take a listing and invest: time, effort, & money into it if it is priced to sell and the owner is completely aware of market conditions and open to a higher co-op than 3%.
Otherwise, spare me the grief.