Selling Your House After It was ListedMonday, January 11th, 2010
A lot of homeowners today are frustrated seeing the prices of homes come down from what they were several years ago. The shame of the whole thing is that if they would have listened to their real estate agent and priced their home right at the time it was listed, the seller would have walked away with a lot more money for their home than they would today. People do not realize that the cycles in real estate take time; I’m talking time like years – say, 10 years. It is hard for some to believe but this a fact. When prices start to rise from a depressed market the prices increase sale by sale. Each time a property sells, a similar one might sell for a little bit more. This takes time. The real estate market was starting to rise back in 2001 but it creep-ed up on people and wasn’t that noticeable. But, when it was in full swing, around 2003, people were jumping into the real estate market like never before. I’m talking – real estate agents, builders, investors, just ordinary homeowners buying a home and then selling soon thereafter and walking away with $50,000 or more. Homeowners started taking the equity out of their homes and using it for vacations, home improvements, new cars and anything else they might want to have. There were winners and losers in this cycle.
When the market turned in 2006, if a house was listed in the MLS and didn’t sell, some homeowners would then put their house back on the market as a FSBO (For Sale By Owner), thinking that they would get more by saving the real estate commission. No matter who is selling, the price is determined by what somebody will pay for the property. Plain and simple – this is the rule. If a property sits on the market it is because it is priced too high for what the market will bear. But, sellers will not accept this fact. There is an emotional attachment to the property and they cannot be objective.
Buyers are knowledgeable and they know when a house goes from listed to FSBO. This is a fact also and then the buyer thinks they can get a steal. The only way to win in any real estate market is to be knowledgeable and listen to what your real estate agent is telling you. Just ask the agent for what sold and closed within the last 6 months that is similar to your property. You can then make an informed decision and you can actually set the price yourself. Don’t add on the commission once the approximate price is determined, this will put you in an overpriced listing.
Be smart now and you will walk away with the most you will get for a property. The other alternative is to sit on the property long term; say, at least 25 years – then, you are bound to walk away with a profit.