1) Interest Rate Increase
2) Lack of Investor Appetite
3) More inventory
So marketing and pricing your home is no longer a child’s play as we are seeing more and more Los Gatos homes who have been over-priced stay in the market. The poster child of over-priced home is 16600 Englewood Avenue, Los Gatos where the home owner insisted on netting $1.6M despite our recommendation that the home should be listed at $1.2M to $1.4M max to attract multiple offers.
Well, suffice it to say that this los gatos home has stayed on the market while 2 more homes on the SAME street have been listed and sold within days while this home has been on the market for more than 2 months!
So, to avoid the same fate of this Los Gatos home owner here are our recommendations on getting your home priced correctly:
1) Get Comps: Obtain as many comps of homes with similar size, age and functional utility that have sold within the last 3 months. Make sure these comps are within 1 mile or less radius of your home.
2) Seek Advice: Get advice from local agents who know your immediate market.
3) Monitor Trends: As we mentioned above the interest rate trends are on the rise, so affordability might be an issue. In fact, the recent rise of rate has forced some buyers to shelf their plans for purchasing a home.
4) Days on the Market: Ask your real estate agent to complete a Broker Price Opinion for you and update it every week to track how fast homes are selling.
5) Avoid Emotional Traps: It’s inevitable that home owners develop emotional attachment to their home which blinds them to the limitation and the problems with the home. The only mention the reasons why their home should sell for 400,000 over similar home on the SAME street.
We have heard some of the strangest reasons why a home owners believe their smaller condo should fetch much higher price than a larger condo on the same complex!! His reasons were 2 tall Trees that provide shade to his unit and the fact that the view from one of the bedrooms is to the water front.
Bottom line is that Banks have done a very skilful job of pricing homes for quick sale and home owners need to take a page from these valuation techniques to improve their chances of selling their home for the highest price possible.