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Hot Properties in a Cold Market: Why Nothing Matters but Price

By: Ryan Vaught, Keller Williams Realty, Chico CA

Well, cold isn't such a good word for it, when talking about the market these days. It isn't a hot market, so does that means it's such a bad market? No. Nearly the same amount of homes sold this year compared to last (in Chico), so you can hardly argue things aren't selling. They just aren't selling, like hot cakes. Oh well, the price of gas is going up also, we will survive.

Recently, there have been three properties I have witnessed, which got multiple offers in the first several days on the market. This proved a point I have noticed: Properties are moving, but only the very best priced ones. Seems like a simple point right? No. Sellers don't understand it, and this is why:

Multiple Offers or no offers?
A listing I took on 3rd street in downtown Chico, had 6 offer the first 7 days on the market. Needless to say, it went for well over asking. This particular property kept my office staff busy for a full week just answering the phones, questions and showing the property. Why did this happen? Well, there was no competition for this property. It was such a unique property, priced to sell and it spurred enough action to actually raise the sales price. Yes, it is possible. Make sure to ask your agent how they are ready to sell your house for more than it is listed for.

Take a look at this particular listing. You can see, it is unique, and priced to move.
http://www.ryanvaught.com/?cf=mls/Details&mls=200707444

There are several other examples.

Sold after 9 offers, 7 days
http://www.ryanvaught.com/?cf=mls/Details&mls=200707495

At least 4 offers,7 days.
http://www.ryanvaught.com/?cf=mls/Details&mls=200707680

Why Nothing Matters but Price
What this tells us is that property priced correctly will sell very fast. But property priced high won't sell at all.

Jr High Dances and the Real Estate Market
If you remember back to Jr. high school dances, you remember the awkwardness of asking someone to dance. Well, it's the same in the real estate market. You could be a very nice girl, but if your not the prettiest, chances are you won't be dancing. If your house isn't the very best house in it's price range, it will not sell. Being priced right doesn't matter. Being priced best is what matters.

Why the Prettiest Girl gets to Dance
If there is one house, that is priced better than your house, has the same features, size, neighborhood etc, then you won't be selling your house. Chances are that house has been sitting on the market also, and is now competing with your house, after a few price reductions.

What are you competing against?
Tip for Sellers. Ask your agents, to ask the buyers who are viewing your house, to provide you with a list, or verbally give you the other homes that they are looking at also. Then ask which home competes best with your house. Chances are the buyer will know better than you what is going on in your price bracket. Then ask your agent to take you out to view the homes that are "beating" yours. If you can see first hand, why your house isn't selling, then you can sleep easy at night, when you finally price your house to beat the competition.

Why not test the water at a higher price, then come down?
Because it doesn't work, at least not if you want to net the most you can as a seller.
Selling isn't a decision you make, if you can get your price. Either you are committed to selling your home, or get your dang home off the market! If you don't need to sell now, then you need to be selling later. There are plenty of other unmotivated sellers clouding the marketing with over-priced homes, please don't add to the list. Either be committed to selling your house, or don't even play that game.

So, you can forget all those great features, and nice paint colors you have. If you aren't priced to get eyeballs through the door, you won't be selling your home. You may actually be selling another home, perhaps the one that has you beat on price, but that sure doesn't help you. If I could only get three listings, and price two of them above market, boy would my one listing look like a great deal. When pricing your home, make sure you can not only be competitive, but beat, considerably the competition. If someone doesn't think your house is the best on the market, guess what house they will be writing an offer on? It won't be yours.

Take a look at my latest market report
http://www.ryanvaught.com/?cf=mls/report1

Currently Ryan has nearly $4 million in inventory, and will have sold over five million in the first three quarters of 2007. Please don't hesitate to contact me with any questions about Chico area real estate.

Not sure what I am talking about? Don't agree with a statement I made?
Give me a call, let's talk real estate.

Interested in learning more about the Chico area or Ryan
Vaught Properties: Chico Income Property
Chico Condos: Chico Condo Sales
Ryan Vaught: Ryan's Residential website

Ryan Vaught, Realtor
Keller Williams Chico CA
Office Phone: (530) 343-2959

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    Comment balloon 1 commentRyan Vaught • November 19 2007 12:02AM

    Comments

    My take on the market is that it's too soon to be prospecting.  I'm seeing some bargain buying going on, but with the way things are going, in six months those bargains will be market value.  Values are adjusting downward quick in many area here in So. California.  Good point though.
    Posted by Alix Pinzon, (562)743-6086 (Open Mortgage, LLC) over 10 years ago

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