Wanda's Blog From Billings, Montana

I've heard, and understood for years that when a home starts out overpriced, it usually either doesn't sell, or it sells for less than what it would have sold for, if priced right to begin with.

Did I loose anyone there?

This was the REALTOR TALK on our office tour to various homes today.  Our local real estate market in Billings Montana is just really odd right now. 

• only a little over 40% of listed homes sell
• open house traffic is pretty slim, doesn't seem to be bringing out real buyers, just tire kickers
• homes that have been on the market for awhile and haven't sold, are still on the market, even with price reductions of more than 10%
  
• homes that have been priced aggressively (below the market value) are selling in under 2 weeks
• home sale price of some homes that have been price reduced by even 10% sold for even less after very lengthy days on market

I have grown up in Real Estate learning to make an impression on a seller that they will get a better and quicker sale if they price their home right the first time. 

I tell ya, I think some people worry that I'm trying to pull one over on them.  A couple of those same people listed their homes with a different firm, at a price they liked better (higher of course), and there the home sits, NO SALE, NO OFFERS, EVEN AFTER 3 PRICE REDUCTIONS!!!

You buy and sell in TODAY'S MARKET! 

It's very comical to listen to potential seller's tell me that they want to sell their home for a price that is over valued in today's market, but they want to buy a home undervalued in today's market!

You buy and sell in TODAY'S MARKET!

The Quilting Realtor

Many Dream Of Living In Montana I'm One of the Lucky One's That Already Do! Wanda Thomas 2wandathomas@gmail.com Call or Text 406-698-8640 for help with all things Montana. Local MLS Search Link

Situation:  Home still on the market 90 days after listed.

"Well I guess if my home sold too quickly, I'd know we didn't ask enough"

Interesting conclusion!  I must ask you seller, why do you think that way?

I think we all try to rationalize our shortfalls, it's only natural.  Realtors are trying to explain why homes don't sell all the time.  On the other hand, don't worry you didn't ask enough for your home if it sells in the first week?  It's all about expectations of perceived value, verses real value in the current market.

It's all about price; asking price, offer price, closing price.  What's person to do?

If a seller wants to move, then the home they want to sell needs to be tested in the current market.

What constitutes a test!

• Develop a starting point based on what's sold and/or gone under contract in the last 60 days
• Compare your home to other homes a buyer will be looking at with similar price and features
• Make your home the best value amongst the competition
• Ready, set, show and sell
• If the test was at the correct starting point, expect showings within the first few days to result in serious interest and an offer close to if not at, the asking price
• If you go 10 days without a Realtor showing (not including open houses) your home is either overpriced or in tim-buc-two
• If your home is shown by Realtors 10 times and no interest or offer, your home is overpriced
• If other homes in your market range are selling and your's is not, then you are loosing in that price range, the longer you keep your home at that price, the less interest you will have
• To attract the most activity, re-evaluate your market, yes, look at what's happened in the time period that you have had your home on the market.  If others are selling and your's is not, reduce immediately.  If no others are selling, ask why?
• Try not to hold on to a Dream Price and loose the opportunity to sell to a ready, willing and able buyer at the Real Price
• The sale price of a home on the market only goes DOWN over time on the market, NEVER UP

This Real Estate Industry is driven by Supply and Demand.  We have a bit of a hangover as homeowners from the indulgence we participated in a few years ago.  Supply was low, and demand was high, which raised prices quickly.  Right now most Real Estate Market Places have more supply than demand. 

Who do you think wins in this market?  Oh yes, there are winners.  Buyers are the winners.

So are sellers losers?  Those that have to make a quick turn around will not "make any money".  But if they price their home correctly and keep it priced for the market they are in, it will sell.

The Quilting Realtor

Many Dream Of Living In Montana I'm One of the Lucky One's That Already Do! Wanda Thomas 2wandathomas@gmail.com Call or Text 406-698-8640 for help with all things Montana. Local MLS Search Link