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The current real estate market in San Diego County is
turning from a sellers' market to a buyers' market. What does that mean
for sellers? More competition and fewer buyers.
In a buyers' market, the seller has to be ahead of the curve or they will be priced out of the market.
How are houses priced out of the market? Often, agents competing with one another pump the stats and the price to get the listing, figuring they can get a series of price reductions later until it sells (called in the trade "buying a listing"). Overpriced homes are dangerous in a buyers' market because of the "attention factor".
New listings get a lot of play. However, if a house does not sell in the first few weeks, agents no longer pay attention to it, deducing that something is wrong with it. After which the price must be substantially below market to sell the house.
There are three steps to setting a price for your home. First, take a hard look at the recent sales in your neighborhood. Choose the three homes most like yours. Next, go and visit all the homes for sale in your neighborhood, paying particular attention to those with a sale pending. Your agent will help you do this. Last, fix it up! Buyers pay a premium for homes in great condition. Read our article, Getting Your Home Ready to Sell, for hints on how to do this.
Pricing your home for sale in a buyers' market is crucial. Unless the seller is just trying to find out what his home is worth. But, why bother?
If you are serious about selling, let's talk.