Buyer’s Market

marinerside.jpgPricing is key in a buyer’s market.

A long time Realtor, Teresa Boardman – St. Paul Real Estate, Minnesota posted 2 must read articles on the subject:

1) The Pricing Game – Part 1
2) The Pricing Game – Part 2

Follow the market

It is not difficult to find out which direction the market is heading. There are different strategies a home seller has to use to deal with the sale of his or her home. In a buyer’s market, pricing a home at market or 3% to 5% lower is recommended to sell your home. By tracking and following the list/sale ratio or absorption rate, using 6-month supply as normal or balanced, you can adjust your listing price accordingly.

Click here to view the latest list/sale ratio for Richmond homes.

What you can do in a buyer’s market?

You have to be realistic with your expectation, and position yourself to attract buyers’ interest. If there are 2,500 properties on the market and 250 are selling, only 10% of the properties are selling for the month. Your home has to be at the top “10 % in the marketplace” to attract buyers to view your home. If an average home takes 10 months to sell, pricing your home at similar prices to other homes will take 10 months to sell!

If you must sell your home in a buyer’s market, price your home at or lower than comparable homes listed on the market… a lower priced home get sold more quickly.

The first 30 days are crucial

When priced and marketed properly, your home has the most impact in the market place during the first 30 days. Interest from the market drops off significantly after the first 30 days. If the showing activities are lacking the first 2 weeks, you need to re-examine your pricing and find out why you are not getting the viewing appointments.

If you are not getting 2 to 3 viewing appointments a week, your home is not attracting buyer interest. Offers from buyers only come about when interested buyers have viewed your home. When viewing interest is low or absence,  it is a tell-tale sign that you are unlikely to sell you home.

Working with your Realtor

You are in partnership with your Realtor when selling your home. Be realistic with your expectation, and view your home from the position of a home buyer, will you pay the price you are expecting a buyer to pay you. In a buyer’s market, “pricing the property right” is the single most important reason for a home to sell. Assess the showing activities, review the selling prices for comparable homes that are sold, and adjust your selling price accordingly.

The final verdict… no showing appointments… no sale!

For more information on the real estate market in Greater Vancouver, and Richmond Vancouver and Burnaby in particular, you can follow my blog postings here.

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