In the last month I have had a few sellers that have taken their Logan Utah homes off the market. They decided they just wanted to wait until spring time, and didn't want their homes to become stale on the market. Some of these seller's homes were on the market for some time, and I couldn't talk them into reducing their prices. The market had spoken, their homes were overpriced.
Just because you wait to sell in the spring doesn't mean your home is priced to sell.
Everyone knows in the real estate business, spring time is the busiest time of the year. There are more buyers in the spring, but there is also a lot more competition.
If your home is on the market for an extended amount of time, the worst thing you can do is take it off the market and wait to price it exactly the same a few months down the road when you are going to have twice the competition.
Here's Why:
- The market has already shown your home isn't priced correctly, if it was, it would have sold no matter what season it is. Price is the #1 factor for selling a home, no matter what condition it is, if it's priced correctly, you can sell it.
- Your mortgage payment isn't going to go away. Every month you stay in your home, you have to pay for your mortgage. Which means more money you pay your lien holders in interest. That money is gone forever.
- The longer your home is on the market, the more behind the market it becomes. If your home was priced competitively in the first month, but soon after you start noticing homes selling in your price range for less then what they were the month before, you have to adjust your strategy. It may have been priced right 3 months ago, but how does it compare today? The real estate market is a living creature, it changes, and no one knows where it's going until it has already been. Price your home ahead of the market.
- If you think it's going to be hard to sell your home in the winter, imagine how hard it's going to be when inventory goes up 30%.
Now, don't get me wrong, I understand you need a certain amount of money out of your home. The problem with that thinking is, the market doesn't care how much money you need out of your home. The market doesn't care that you can't sell your home for the price the market says it's worth. The market provides the price a buyer is willing to pay, and nothing more.
Take a deep breath, look at the facts, and think about your motivations for selling your home. If you can't price your home at the price the market dictates now. Why would you want to wait until the busiest time of the year, with more competition, higher interest rates and then price it at the same as you did with less competition, better interest rates, and in a market that is heading into the unknown?
What are your motivations for selling? Are you relocating? Are you trying to move into a bigger home? Are you downsizing?
If you have all the time in the world to wait out the market, that's great and you are in a unique situation, but be prepared to wait a long time. If you want to sell your home fast, price it to sell in today's market, and you will actually save a lot of money in the long run.
This market is, to be blunt, insane. No one knows what's going to happen over the next few months, and if you wait until the grass is greener on the other side, you may find that someone has poisoned the grass.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Lisa Udy, Logan Utah Real Estate Copyright © 2009 If you are considering buying or selling a home in Utah, you deserve local expertise and advice to be provided by a professional in real estate. Lisa Udy, is a Utah REALTOR® providing full time, professional real estate services to home buyers and sellers in the cities of Logan, Providence, North Logan, Hyde Park, Smithfield, Richmond, Nibley, Lewiston, Cornish, Trenton, Amalga, Clarkston, Newton, and all surrounding cities in the Cache County Northern Utah area. You may be relocating to or from Utah due to any number of reasons , whatever the case, when searching for a real estate professional outside the state of Utah, please feel free to Contact Me or call me at 435-881-3022 as I am more than honored to provide to you the contact information of exceptional agents across the U.S. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Lisa Udy
Platinum Real Estate Group
View My Other Blog @ Homes For Sale Logan UT
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They should stop kidding themselves. We are in the spring market right now. When the tax incentives expire it will feel like December all over again.
You are completely correct about all of this. Good post!
Michael - I agree, I can see a nice dip in home sales come end of June and into July/August.
Matthew - Thanks, it's just as frustrating for an agent as it is the home seller when things don't go as planned.
Lisa - I agree with you completely and have advised sellers of the ramifications of waiting until spring to list their home. I also point out that most of the buyers that are searching now are serious about their home search. They need a house, or they would wait until spring when there are more properties to choose from.
Lisa - I just saw you quoted in the February issue of REALTOR Magazine, published by the National Association of Realtors. It was so exciting to say "I KNOW HER!!!" Way to go, and way to get some exposure. Kudos, girl.....
Well said Lisa. A lot of sellers do have the herd mentality. Lets all wait till spring and list at the same time!
Judy - Absolutely, there is always a buyer for your home, you just have to make them want it.
Sally - Thanks! I know you too!! lol~ I was contacted a couple months ago by the magazine, I am glad they actually decided to use it!
Knowles Team - It's funny how we humans work isn't it? If someone else does it, it must be the right way to go!
Hi Gary! Thanks for the friend invite on Facebook, you just reminded me I need to get on there and catch up a little. :)
I guess they think spring is a magical time when all homes are sold. Great post!
Lisa ---- very true --- congratulations on your feature --only if all the sellers out there would read and abide by your post. BTW, you mentioned once about linking our web sites -- I now have a web site that I can link to yours -- our main site is still under construction, but you can take a look at my particular site which is http://MamaLiz.onlineaor.com
Lisa,
You very well stated the paradox that is facing sellers these days! " if you wait until the grass is greener on the other side, you may find that someone has poisoned the grass." I just love how you phrased it, sounds like a Haiku for homesellers in 2010!
Kim - Spring is magical, but not for unrealistic home sellers..unfortunately, spring is probably the hardest time to sell a home in my market, as the market becomes over saturated, and buyers become more picky.
Liz - I sent you a message, let me know what you think.
Monique - I use to say that to my kids all the time. They always think things are going to be better somewhere else!
Excellent advice. In my area we have seen the normal slow down during December in which months supply of inventory rose to 14 months. Think of how much worse it will get each month afterwards? Sellers really have to change their strategy from past years.
I like "the more behind" you become verbiage. Reblogged this! I think the inventory increase is also an excellent point!
Lisa, beautifully said! The sad reality is that too many sellers don't want to hear the truth...they want to hear what they want to hear. When we lay out the cold hard facts and they say they want to 'weigh their options' I am afraid it is, all too often, seller-speak for I want to go find someone who will not be so honest with me!
I believe the spring market is here with tax credits coming to an end in April. Sellers need to realize that lower inventory is a help to them at the moment. If they really want to sell - it's about price - they need to get real.
Lisa - Great post! I love to see so many great articles today that help to educate buyers, sellers as well as other agents and industry "pros". Home Sellers should, now more than ever, also consider the marketing advantage of a "Move In Certified" home inspection as part of the marketing of their home. So, again, instead of taking them off the market, improve, adapt and change marketing strategies to jump start this springs home sales. Go get em Lisa!
In DC, where I sell houses, everyone wants to wait to put their house on the market "when the azaleas come out" (April). The smart sellers take our advice and get their house ready for the "spring" market late January/February. And guess what? They sell!
Lisa- you're so right! I have several "would be " sellers lined up, waiting to put their house on the market in the Spring. You've reiterated several reasons I can give them to encourage them not to wait!
Great post! And there is even more pressure to get it on the market and keep it on the market now--the end of the tax credit. I have people who want to wait til April and I am trying to convince them otherwise--for all the reasons you have mentioned. Thanks.
Lyn - Very true, this year is going to be an "unknown" to us all, waiting shouldn't be an option.
Cheryl - Thanks for the re-blog!
Susan - I also am feeling like the market is different this winter then in years past, we very well may be in the spring right now, great point.
David - Change is inevitable, and we are in a big situation of change in today's market.
Marcie - That's the truth!
Linda - I have the same thing, and so does every other agent out there, which brings me to the point that there is going to be more inventory within that timeframe.
I have to agree with Michael, the tax incentives have certainly 'propped' the market up in areas around the country. I fear when they are gone we will see a downturn (hopefully I am wrong).
Lisa, you point is well taken in that IF the home was priced right in the first place, it would matter not what time of year it is. Great blog.
I agree. I talked some sellers into NOT waiting until spring and the house sold in one week. Less competition now! Price is so important though.
Lisa you've taken the words right out of my mouth! I have a seller who asked me if she should wait until spring and I told her NO WAY! She has a home that is in the first time homebuyer price range. I told her lets get it on the market now to sell while the tax credit is still around. On the flip side those buyers who are in the higher price range should'nt wait either. Those moving up need someplace to go! I have buyers waiting for something to come on the market.
Lisa:
They should keep their homes on the market now. With the tax credits in place until April 30, this is the strongest time to sell. Unless they do some kind of extension or replace those tax credit programs, I believe we are in for a stall in the spring.
Lisa - "The market has already shown your home isn't priced correctly" is an excellenet point and not always easy to communicate to the seller.
You have spoken words of wisdom! I will save this post for Sellers in need of more information.
Yes, yes, yes. Sellers MUST be honest with themselves while looking at "the numbers." No amount of marketing, strategizing, or anything else will help if the property is over-priced. Especially once the appraiser gets there!
It is true Lisa. Buyers are savvy. They know everything that is on the market in their area. I would like to add price the house right and present it well. Buyers want a "turn key" house that is priced right. It is still a Buyer's market
Great post!! Thanks!!
Good points that we should be making to encourage our own "on the bench" sellers to get back in the game and get it sold!
Excellent post and right on point. We all know that MARKET is what a willing buyer is willing to pay and what a willing seller is ready to accept. We just put the opportunity together.
here in DC it is = lets wait till spring when the azaleas are out. The house looks so pretty in the spring with the azaleas. Guess what - so does every other house in your neighborhood, and the next neighborhood. Forget mushrooms in the rain - it is open houses when the azaleas bloom! Good post - great advice!
It'll be interesting to see what happens to the market after this stimulus ends.
As we have just gone through the worst downturn in a long time I would have to say that waiting might not be a bad thing. I don't have a chystal ball but I would say that the improvement we have seen in the sales figures would indicate that better times are approaching. Actually this spring there should be a mad rush to buy as the $8000 first time buyer credit last until the end of April. It will be interesting to see if the markets improve. Overall the inventory numbers have been coming down and that should eventually lead to stability and then upturn. It won't happen overnight.
Taking something off the market and bring it back a few months down the road can work if the market is trending up. How is it trending in your area is the question.
Now is the time! Price it right! Make it look as good as it can! Make it available for viewing and be realistic!
Clearly, Lisa, this is a nationwide problem. Many sellers wish to sell at their price and grasp at straws. Spring isn't going to help move an overpriced home!
I think there is a false belief among some that values change drastically overnight. They are obviously being over optimistic!
If the seller is motivated and willing to price it to sell and listen to their agent, (if the agent is honest and knowledgeable of course), then the property will sell in any season because the buyers are always watching!
Lisa;
I notice that you mention that the listings were on the market for a while. Which to me translates into sellers that are not motivated. My recommendation is that if a seller does not have the right motivation to sell give the listing back or work out a referral in your office with another agent.
Lisa, this is a great post and such good, straight to the point information. I may have to re-blog as I think the sellers here in Cleveland should read this.