Sunday, May 11, 2008

Get Your Price Right

All the “end is nigh” commentary about decreasing house prices should no longer be considered doomsday fear mongering that can simply be ignored.
On the contrary, if you fail to accept this truism it could cost you a lot more when you do eventually sell your home.
In a falling market, if you don’t price your property correctly right from the start, you could eventually find yourself dropping the price much lower than what you may have accepted had you got it right in the beginning.
What you need to do to avoid this harrowing experience is to ask yourself, “What’s the lowest price I will take now?”
Then ask yourself what you won’t accept, price your house just above that level and get the house sold.
Cheery stuff eh? Well all is not lost. Well, not yet, anyway. If you start to look a little more objectively at what is going on you can still make some money. If you’ve been in your home for a few years, keep thinking positively by contemplating your aggregate financial gain over that time rather than dwelling on the peaks and troughs that appear by looking at last year’s sales figures as opposed to this year’s.
If, on the other hand you are one of those unfortunate people who are staring down the barrel of a mortgagee auction, limit the damage by pricing your property at the lowest figure you’re prepared to accept, right from the start. Just as importantly, find yourself an agent who isn’t afraid of telling you the truth.
Remember, he (or she) isn’t your friend. He is the expert you are paying a lot of money to tell you what needs to be done. Tell him everything he needs to know from the start and then let him get on with his job. That means being prepared for him to give you what may sound like bad news. Remember this: it isn’t bad news, it’s the facts.
Finally, think about this for a moment. There are nearly 2000 houses on the market in this area. Less than 150 of them sold last month, and the owners of the ones that did sell, got their prices right.
They implicitly followed the economic axiom that says when supply is high, demand is low. For your home to be in demand and ultimately sold, it must priced at the low end of the supply.

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