Williamsburgs Real Estate Blog and more!

I did a search of the MLS for the last 45 days looking for how many price reductions have been posted. It seemed alot of my recent inbox emails have been from agents announcing a new or lower price on one of their listings.  This is not uncommon and a good way of getting the word out and hopefully read!

The market continues to change everyday, one day good news, later in the day bad news only to be followed up with a different twist offering good news or renewed optimism.

Anyway, almost 20% of our active inventory witnessed a price reduction in the last 45 days. I know for a fact-because I was a party to it-one had a price reduction taking it below the point I had written an offer months earlier. Why? I continue to offer sellers proof that quite often, your first offer is often your best, do not let pride get in the way, and leave the emotions at the door. It is simply a business transaction-look at the bigger picture!

There's no way to prevent the need for the occassional price reduction. It happens at the grocery store, the gas pump, and the department store. The assumption is the house was overpriced. A home is priced for the current market conditions based on past verifiable information and future optimistic projections. If I hope to sell a home within 60 days, I have to look at the absorption rate. How many similar homes are on the market and for how long have they been on the market. If my market time for a $300,000-$325,000 home based on current inventory and tracking is 18 months, why would you want to price it at $320,000? Price it at the bottom of the range today. Don't wait 6 months and do a price reduction (or three price reductions!)

Pricing a home is tough. It's your home and your biggest investment. I want you to get as much as you can for it as quick as you need to sell. But if you get a buyer who as written an offer at 90% of your asking price, perhaps you want to think it over long and hard before rejecting it or countering back at full price.

It's often written,blogged,speculated that Real Estate agents are only in it for the money, and don't care-just in it for a paycheck. Unfortunately, until you've dealt with an agent for sometime, written or received a few offers that haven't worked out do you know the true character of your agent. Perhaps a little more trust and communication is all that is needed! And work with an experienced full time REALTOR. This is not the market to hire your best friend who just got their real estate license!