Stay in Front

indy

In spite of how scary this all was for Indy, if you’re a seller in this current market the best thing that you can possibly do is to stay ahead of the rolling boulder that are home prices in this 2009 market. It’s been interesting to note how this lesson has played out recently when it’s come to recent sales. Take for example a house in the San Carlos hills that closed last week. The house was initially listed in late September for $1,349,000…in retrospect a price that was too high for that marketplace. They dropped it 3 weeks later to $1,250,000 and then again a month after that to $1,195,000. It went off the market for the holidays and came back on again in January for $1,149,999. In late February it reduced again to $1,125,000 and again in early March to $1,099,000. Finally at the end of March they dropped it one more time to $1,075,000 and it finally ratified five days later. It closed last week at $1,015,000. The sellers paid $1,050,000 for this house in 2004.

What I mean by staying in front is simply this. If the sellers had been able to swallow the painful medicine earlier in the listing’s life they would have sold it for much more money. What if they had started at $1,249,000 instead of $1,349,000? That price would have seemed cheap in September. What if they had dropped the price from $1,349,000 to $1,195,000 in November? I don’t think there’s much doubt that the house would have sold sooner and for significantly more that $1,015,000. Hind site is this fabulous teacher, I know! I also know how hard it is for sellers and listing agents to come to terms with a meaningful price reduction…simply because nobody want to  lose money on their home.

 The market is like a flowing river with plenty of ebbing and flowing and it’s critical to pay close attention to the nuance of comparable prices. The market is also teaching us that the aggressively priced home sells much faster than the conservatively priced one…and in the long run pays off for the seller.

By the way…Happy Cinco De Mayo!

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