Inman News, the real estate industry’s leading online information source, reported today that the economic slowdown during the COVID-19 pandemic is affecting home sales negatively. From Mar. 9 to Mar. 16, Google traffic saw a 35 percent decrease in home searches.
The report quoted one broker who said, “Over 350 homes withdrew or canceled from MLS across Massachusetts in the past four days alone.” The broker went on to point out that “One in four properties had already reduced their price. One out of 20 had reduced their price by 10 percent or more, and one out of 12 were listed for less than the assessed value.”
What this tells us is that sellers need to be more realistic about setting their asking prices. Setting the right price for your house is one of the most important things you can do.
With prices slowing from their previous pace, homeowners must realize that pricing their homes a little over market value to leave room for negotiation will actually dramatically decrease the number of buyers who will see their listing (see the chart below).
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price their house so demand for the home is maximized. By doing so, the seller will not be negotiating with a buyer over the price, but will instead have multiple buyers competing with each other over the house.
Global Property Systems says:
The secret is making sure your house is Priced To Sell Immediately (PTSI). That way, your home will be seen by the most potential buyers. It will sell at a great price before more competition comes to the market.