“When it’s priced right, it sells and that’s the bottom-line,” said Angie Perez a broker-salesperson of Weichert Realtors as she described the recent events surrounding a multiple offers situation on her Woodbridge, New Jersey single family residential listing.
“Most people are under the impression that the real estate market right is struggling and that would not be true. Granted prices have come down substantially since 2006 and 2007, but the real estate market is improving, said Perez.”
Ms. Perez is one of many real estate agents who have experienced a recent home buying frenzy in certain parts of NJ.
Perez said, “Two weeks ago, I finally convinced my clients to price it right, price it to sell. I am the listing agent of a single family home that’s been on the market for many months. It was a for all intents and purposes a stale listing with very little showing activity for weeks, if not months.”
Perez recalls that she listed this one particular home, the one that received 4 offers and counting, back in November 2011 at an aggressive price, a price that was significantly higher then the fair market value of the home.
“My style as a listing agent is simple,” said Ms. Perez. “I educate my clients; make recommendations, document the feedback I get from actual buyers and other real estate agents about the property and make adjustments to either the marketing and/or pricing plan for the home accordingly.
One of the things my clients in this particular situation wanted me to do was obviously try to get the highest and best price for their home and so in my clients’ mind this meant offering the home to home buyers at a price significantly higher than the market value of the home so that they could have room to negotiate – the proverbial wiggle room in the price!
Perez lamented that many home sellers think this is the only way to price a home to sell – i.e. higher so that they have room to negotiate. Ms. Perez said, “This strategy of leaving room to negotiate can be counter-productive, especially in a market that is saturated with unsold homes.”
“I kept in constant contact of my clients throughout our listing contract. After many months of not selling, I was able to finally persuaded the sellers to make two major price reductions, one from $289,900 to $269,900 and finally one from $269,900 to $249,900 until the home finally caught the attention of the right buyers, creating urgency and a multiple offers situation.”
Ms. Perez advises future home buyers that they should hire a buyer’s agent early on in their home search so that they know immediately about new listings, new price reductions. One of the reasons this article is called 4 offers and counting is that even after an offer was accepted on the home, many home buyers had inquired about the home after it was too late and under contract.
“Many first time home buyers make the mistake of trying to shop for a home on their own and often miss out on opportunities like this one where an old listing finally came into their desired price range. All of the people who called after the listing was under contract could have prevented losing out on their dream home by simply signing up for automatic updates of new listings.”
For home sellers, Ms. Perez advises sellers not to chase the market. Even though the above story has somewhat of a happy ending, the months without selling actually increased the seller carrying costs of the home in the form of of state taxes, maintenance and other fees that could have been avoided.
To find out if your local real estate market is declining or improving, sign up for a free, no obligation home value. I know what you are thinking. Why not check your home’s value on Zillow by simply inserting your home address within their search bar? Well, don’t trust Zillow Zestimates because they are highly inaccurate. Get one free home value report from a local Realtor like Ms. Perez with periodic updates of just sold homes for free.