Marin Home Price Reductions Abound - Advice for Sellers

Posted by Marin Modern on Sunday, October 28th, 2007 at 10:59pm.

The tables are turning in the North Bay real estate world.  Recently I have witnessed a significant increase in the number of price reduction while perusing the Marin County MLS for my home buyer and seller clients.    With this in mind, I decided to take a quick look back to see exactly how many price reductions there have been since the begining of October, 2007.  

Month to date, there have been a total of 377 homes that have had price reductions and only 282 new properties that have come on the market.  What does this all mean?    

Seller Expectations + Market Realities

The market has transitioned and sellers need to understand the importance of pricing their home properly from the beginning.

A property will garner the most interest and traffic (from both buyers and agents) during the first few weeks the home is on the market.    Listing a home at a premium price from the get-go will often backfire as market savvy buyers overlook the property and avoid making an offer (or even touring the home ) because they believe the sellers expectations are unrealistic and not inline with current market conditions. 

I have many examples  which illustrate the importance of  "right-pricing" a home in todays market, however one really comes to mind. There is a mid-century modern home that is currently on the market for $839k. This home was initially listed with a different real estate agent during the peak spring/summer buying season at $935k.     The sellers had interviewed  several experienced agents (who recommended pricing the home in the high-800s), however the sellers elected to list the home with an agent that supported the $935k price point that the sellers had in mind.    

Fast-forward several months and the home is still on the market, albeit at a significant lower price point ($839k), with the initial excitement of a new listing long gone.     I firmly believe that had the sellers listed their home at the recommended price point this summer, the home would have successfully sold at a premium to its current list price.   The choice to overprice from the beginning likely resulted in a very costly $50k+ mistake for the sellers.   

What's a Seller to do in Todays Market?

In today's market, its critically important for sellers to price their home correctly based on current market conditions and not put themselves in a situation where they may end up having to chase the market down.

To avoid this problem, I strongly encourage sellers to engage and listen to experienced and highly-active real agents when it comes to pricing their home.   Sellers should NOT focus on hiring a real estate agent that tells them what they want to hear.   Instead, seller should concentrate on hiring an experienced agent that is "in the know" about the current real estate market and has a keen understanding of how to reach todays homebuyers.  This means engaging an agent that can:
  • Help them price the home appropriately based on current market conditions,
  • Assist sellers in preparing their home for sale,
  • Aggressively market the home both online and offline to attract the widest pool of qualified buyers,
  • Stay personally engaged and committed in the transaction from listing to closing

Good News for Smart Sellers

The good news is that properly priced and aggressively marketed homes are still selling well throughout Marin County. 

I would encourage prospective home sellers in Marin to chose an experienced and active real estate agent who knows the local market well and can appropriately market their home to the right audience.  Then, let them do their job and trust that they have your best interest at heart.  

By staying ahead of the curve from the onset, sellers should be able to maximize the proceeds from the sale of their home and can avoid chasing the market (and the price of their home) downward.

Contact Me for Advice on Selling in Today's Market

If you are thinking of selling your home in either Marin or San Francisco County, please contact me for a no-obligation listing consultation.   I would be more than happy to give you candid feedback on your property and also outline an aggressive marketing plan that will help you attract the widest pool of qualified buyers, resulting in a sale that will maximize your profits.

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