Why is it important to properly price a home when it is first listed on the market?

"There is a very ready, willing, and able group of buyers that will purchase immediately when a home is first listed if it is priced properly from the outset. Sellers cannot fool the buyers anymore in this day in age with a price you would like to ‘try.’ Buyers are very aware of the current market conditions and have all the tools at their fingertips to see if they are getting a good value or not.

If a seller prices their home properly from the outset and has an excellent real estate agent with a great marketing plan, it is always a win-win situation. The real estate agent will market the home to the real estate community and market it as an ‘excellent value!’ This will trigger the real estate agents to call their qualified buyers and make them aware of ‘a deal they just heard about.’

There is a HOT window of opportunity when a home first hits the market to get as many buyers into the home as possible. When a home is priced properly and it’s within this window, a savvy buyer will see it and jump at the chance. If you overprice, and lose this window of opportunity, there is a great chance that you will end up with offers much less than the “excellent value” price that your Realtor suggested. I am very honest with my sellers and last year the properties I listed that were priced right and marketed as ‘excellent values’ all sold with 25 days of first hitting the market. Basically, price it right from day one and you’ll win!"

Lillian LoGrasso
Web Site: www.LillianLoGrasso.com
Email: lillianlograsso@remax.net
Phone: 978-479-2250

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"New inventory attracts the greatest amount of buyers. Buyers, with the advance of technology, are highly informed in regards to price and days on the market. The longer a home is on the market, the less likely it is to achieve the asking price. Homes priced correctly at the onset receive more exposure and offers. The market data indicates homes which must be reduced to attract offers frequently sell for less than what the broker originally suggested as an asking price."

Margaret Belmonte
Web Site: www.margaretbelmonte.com
Email: margaret@margaretbelmonte.com
Phone: 978-927-2737

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"Proper pricing of a home is all-important in the sales process. The first two weeks of the listing are the most important. That is when the current buyer pool will look at the house and the most likely time to get an offer. In the market we are in, an overpriced listing will not generate offers, it will just sit on the market and lose its initial appeal."

Pat Fenton
Web Site: www.patfenton.com
Email: pat@patfenton.com
Phone: 978-524-8717

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"If you are reading this then you know and well understand the power of the Internet! It is important to price your home properly when the ‘For Sale’ sign first goes into the ground because the Internet has given buyers the power to learn all about the current real estate market place. A real estate buyer will know when your listing is truly a NEW listing because they are surfing the net looking for their new home every day sometimes morning, noon, and night! They are circling their favorite neighborhoods just waiting for the new sign to pop!

When a property comes on the market with the wrong price tag, the right buyer for that property might come through the first open house but then watch and wait, willing to gamble for the right price! In this time of cautious financing, no one wants to overpay. The buyer's bank even hires an appraiser to come out and check the value for the bank's investor once the offer is accepted. The Internet buyer knows that there is an increased chance of a price reduction the longer the house stays on the market.

Multiple price reductions are often a flag that the house is over priced out of the gate. Multiple price reductions are setting the buyer up to want to make a low offer to ‘test’ the water. In today's technology powered real estate market, a well-priced house will be recognized! When the listing is fresh on the Internet, it is possible that the right buyer will not only visit the debut open house but also stand in line to make a full price offer! Houses that sit on the market too long get lost in the excitement of new listings and often appear to have something wrong with them."

Andrea D’Amato
Web Site: www.FindYourNewHome.biz

How does a Realtor determine a home’s value?

“A home’s value is determined by looking at similar style and size homes and their features and benefits, then comparing the subject property to them. We look at homes that have sold in the past 3 months and ones currently on the market. In a declining market, such as ours, the subject property needs to be priced below the past solds. The percentage of the reduction is predicated by the current market.”

Pat Fenton
Web Site: www.patfenton.com
Email: pat@patfenton.com
Phone: 978-524-8717

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"As a sales broker with 25 years of experience, I consider several avenues to determine price. First, in today’s market, which many still consider uncertain, I consider properties which have sold over a 3-6 month period. These properties typically tell the true story of home values, i.e. sold price to asking price, days on the market, number of price reductions. Sold properties indicate the market reality. I am extremely selective in the properties I choose for comparison, selecting style to style, size to size; I compare 'apples to apples.'

Next I research properties which are currently under agreement. These properties indicate what buyers perceive to be a good value in today’s market. Lastly, I look at what the new property is competing with in regards to price, style, condition, days on the market, number of price reductions. Asking Prices in today's market are what buyers perceive to be the seller's wish, not necessarily true market value. The market and my experience in successful selling in this market suggest only properties which are priced competitively result in a SOLD."

Margaret Belmonte
Web Site: www.margaretbelmonte.com
Email: margaret@margaretbelmonte.com
Phone: 978-927-2737

Thoughts on the current state of the real estate market on Massachusetts’ north shore from RE/MAX Advantage real estate agents

"I think there is more buyer inquiry in January 2007 than there was in January 2006. It seems as though sellers are beginning to adjust to a declined market in regards to pricing of new inventory. There is still an abundance of inventory on the market. Homes which have been on the market for 6 months or longer are now competing with new to the market properties. I think it is a more level playing field for buyers and sellers. It is still a great time to be a buyer and sellers must adjust to market changes in regards to price."

Margaret Belmonte
Web Site: www.margaretbelmonte.com
Email: margaret@margaretbelmonte.com
Phone: 978-927-2737

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"Based on the inventory currently on the market now, which is over 5,000 more homes as compared to last year at this time and with anticipation of an increase in property coming on the market for spring, I see no change in the direction of prices in our declining market. If interest rates go up, the price decline will be even deeper.

I see no change in this price direction until our inventory does a drastic decline and I see no signs of this happening in the near future. Therefore, pricing in this market is all important."

Pat Fenton
Web Site: www.patfenton.com
Email: pat@patfenton.com
Phone: 978-524-8717

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"Here is the latest on the streets of Beverly, MA as it pertains to single family housing with a price range between 260 and 460. The new year sparked a ton of interest with potential buyers looking to purchase a home in 2007. Potential buyers have increased dramatically with over 40 people at some of our open houses in a 2 hour window. This is positive for sellers, however the buyers can be patient and will make sure they are getting the best deal possible. Sellers need to do the extras on the home while preparing it to sell, otherwise the house will not achieve its full value or worse will not receive any offer.

The market appears to be stabilizing with inventory not being as large as it has been in the past. 2007 is a good year for buyers as many sellers understand the market has come down and are willing to still sell their property. Many buyers are still cautious and are constantly watching the market as well as keeping up with the latest trends in housing. 2007 should be slightly better than 2006 based upon the number of potential buyers looking so early in 2007. It appears that we may have a productive spring market if sellers listen to professional real estate agents and not listen to their friend who sold their house two years ago and received a large sum of money. Like the great Kenny Rogers sings about, 'You got to know when to hold ‘em and know when to fold ‘em.'"

Mike Cotraro
Web Site: www.teamcotraro.com
Email: cotraro@teamcotraro.com
Phone: 978-882-4425

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"A positive change in the perception of our current Cape Ann market can be gauged by comparing the number of under agreement (UAG) properties now vs. the same time last year. It's what I like to call 'the pipeline.' I'm happy to say that in Gloucester, the number of UAG single families is up from 2 to 20 (+900%), condos from 5 to 14 (+180%) and multis from 0 to 3 (+300%).

Buyers last year were afraid to buy because many were worried about a 'bubble': 'if I buy it today, it might be worth substantially less in the very near future.' According to the current number of under agreement properties, those fears have all but disappeared and, once again, real estate is going 'under agreement' and selling. And, as most of us in the trenches said, 'There is no bubble. The market will correct, but not drastically.'"

Kenny MacCarthy
Web Site: www.kennymaccarthy.com
Email: kenny@kennymaccarthy.com
Phone: 978-758-0983