Like many aspects of the economy, the housing market and Home sales in Sault Ste. Marie is changing. The market is now taking a break after years of home sellers selling faster than ever in decades past.
According to the National Association of Realtors, the inventory of homes for purchase increased by more than 25% between April and May.
During this time, home seller prices fell by 74%.
How can home sellers tell if it’s time to reduce their prices?
Pay attention to the number of potential homebuyers visiting your home. A national survey found that home tours dropped 9% by May’s end. One in five sellers saw their prices drop as a result.
You may consider a price drop if you do not receive an offer within the first two weeks of your listing. According to studies by the national real estate company and my personal experience, your chances of getting a full-price offer within two weeks of listing the property drop by 50%. This happens because the number of offers drops with each passing week. The most interested buyers will quickly visit the property to ensure they don’t miss out.
A real estate market that is changing rapidly may adjust faster than it seems right now. It may indicate that the market is changing. If homes near yours are selling for less, it could indicate that your home’s value is dropping. If you want to stay competitive, this is the minimum price. Do not be deceived by Sellers or their agents who deliberately set a low starting price. This strategy is not something I like. It creates unrealistic expectations, and it disappoints many hopeful Buyers.
These strategies should be kept in mind.
It’s not based on what you or your family believe it should be. It is not determined by what the tax assessor thinks it is worth.
It’s worth what a willing, able and ready buyer will pay. You can see the prices of similar homes and compare them to yours. Anything else, such as the current price of homes for sale, is fantasy.
Be quick and realistic. If you don’t have buyers and no one shows up to your open houses, it may be worth considering lowering the price or making cosmetic repairs. Do it quickly.
Homebuyers who wait too long to view the home will be less interested. Agents and buyers alike will also wonder why it is so expensive. They’ll also be curious about why the home is priced higher than comparable homes and expect to receive a lower offer.
Once you have decided to drop the price quickly, it is important to be realistic about the new price. Many small reductions over time give the impression of a bargain-basement-type home and make you, the seller, appear desperate.
This is, so that future price cuts are not possible. I’m happy to assist you in determining a starting price that will avoid any price reductions.
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