The Price is Right?

2008/06/26 Originally published in the Vernon Morning Star.

It is no longer a seller's market. With the number of buyers reduced and the number of listings increased the marketplace is much more balanced between buyers and sellers.

Now, when putting a property up for sale, a different pricing strategy needs to be engaged.

From 2002/03 to 2007 overpricing a property was less of a problem. If a seller was asking too high a price, the market would eventually rise to that asking price.

But this Spring did not see the forecasted rise in prices. Accurately pricing a property for sale now becomes critical. In a competitive market new principles apply. Prices paid recently on comparable properties show what buyers are willing to pay. Try not to be mislead by higher asking prices you read in some of the real estate ads. Focus instead on the comparable homes that are asking the best prices. They are your true competition, not the overpriced ones. If you price your property to be in line with those best priced listings, it is likely you will sell in a reasonable length of time. Just be patient. The number of days it takes to sell a property is longer than it has been in the last few years.

I also believe that one does not need to add much negotiating room to their prices. I s till see selling prices in most cases are quite close to the asking prices.

If you price too high and then have to do price reductions it will most often result in a lower price in the end. Reductions tend to attract bargain hunters and you run the risk of only attracting low ball offers. Besides, reduced signs and ads tend to create the illusion of a declining market. This is not beneficial to anyone in a marketplace which at least so far, has only leveled out.

It's better to offer your property at a realistic price at the outset. New listings get the most attention. Make your property's first exposure to the market an exciting one, or at least make it stimulating to buyers.

I think there will be a good number of sales in the second half of 2008. It is after all still a pretty good market. It's just not red hot like it was.

Jane Field works with RE/MAX Vernon. Jane has over 30 years experience in the Real Estate business. To suggest topics for future articles or to ask Jane questions, email her or call 503-3755.

RE/MAX Vernon | 250.503.3755 | Toll free 1.888.503.3755 | 5603 - 27 ST | Vernon | BC | V1T 8Z5 | Canada

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The Price is Right?