Selling Your Home in the Iowa City Real Estate Market - What do you think is the most important aspect to getting it sold?
I was recently asked the question whether marketing or price are more important when it comes to selling a home.
It got me thinking. Ultimately we all know it is a combination of both, but the question was interesting, because it forced me to consider them separately.
So what is the most important aspect to selling a home in Iowa City? In my opinion it's price. If you take a look at my absorption rate analysis from last week you'll see the market is turning and we are trending away from the buyers market and towards a more balanced market. The fact is though that buyers are still looking for deals and our market is still driven by price.
So what? You may ask. If it's properly marketed, even if it's priced higher, a nice house will rise above the competition and sell anyway. Wrong. Buyers are bargain hunters, they will walk straight past a higher priced home and go for the deal almost every time. No amount of marketing will help you there. Is there a slight chance that your home will sell at a higher price? Of course there is - if you get lucky and the stars are aligned right! Personally I think "luck" is something you need when you go to the casino, not when it comes to selling your home. When it comes to selling your home you need a plan. And the plan is to price it right on day one. Don't be tempted to test the market with a higher price and reducing it later either. Buyers are very savvy, (or they're working with savvy buyers agents) - They will notice and the time on market will be reflected in the offer.
So how exactly do you go about pricing your home correctly for the market? You need to find the "sweet spot." Not too low, not too high, but right there where it should be! This is pretty difficult to do on your own and maybe one of the most important reasons to work with an agent. Me, I'm a data freak. I do monthly reports that show how the market is trending. I also look at the absorption rate for homes in the area. And when it comes to advising you on a listing price for your home I'll use a combination of this kind of data along with any other factors I might consider important about your particular situation.
Sometimes I think sellers are skeptical when they hear about pricing a home right and think that's code for pricing it lower than the market. Not so. When it comes to listing a home I'm as much against underpricing a home as I am overpricing it. If I'm representing a buyer, then I want them to get the lowest price possible. For sellers I am shooting for the highest price possible. (That's also why I don't like dual agency, but I guess that's a topic for a different post). The point being, I know the market, but have no influence on it. I analyze the data and advise you what you can expect when you sell your home. Sometimes you will like what you hear. Other times maybe not so much. Either way you will have the information you need to make a decision...
Right now, you heard it here... Pricing your home right is the most important aspect to getting your home sold in the Iowa City real estate market.
I also help clients in Coralville and North Liberty. For your reference below are links to market reports and absorption rate analysis reports for those areas.
Coralville Real Estate Market Report September 2009
North Liberty Real Estate Market Report September 2009
Coralville Real Estate Market - Absorption Rate Analysis
North Liberty Real Estate Market - Absorption Rate Analysis
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Absolutely. If the price doesn;t get them interested, get them in the door, then nothing else matters. Two beautiful, beautiful homes in our neighborhood have been on the market well over 12 months. Each has had two agent (one has had three). They still haven;t dropped their prices . . .
Michael
Hi Michael ~ It's amazing that homes can be on the market for that long and still no-one has an "aha moment" about the price. Talk about sticking your head in the sand!
I understand that sellers sometimes perceive their homes to be worth more than the market reflects, it's their home, of course their biased. What I don't understand are the agents who should know better.
Denise