SHOWINGS AND THE PRICE OF A HOMEFirst of all, we want to thank you for your patience and continued loyalty. We have spoken with a number of sellers, and there seems to be a shared frustration concerning the housing market. In a nutshell, we are experiencing displaced demand due to the 2009/2010 tax credits. The close of the tax incentives has lead to lagging sales in May, June and July. The low mortgage interest rates have been the motivation for the second trimester home purchasers. In some price brackets and areas, there are excessive numbers of competing properties; occasionally there exists over two years of inventory for the current rate of sales. The overall Central Minnesota inventory is only ten months, and six months of inventory is a balanced market for buyers and sellers.
I am often asked by home sellers: How can we tell when our home will receive an offer? There are two base lines we review on an on-going basis: the number of inquiries and the number of showings. The objective of our marketing is to produce inquiring parties. When potential buyers are attracted to a home, their initial interest is always price. If the price is affordable for them and deemed acceptable (at or close to market value), the potential buyer generally agrees to view the property. If consumers perceive the home to be above market value, they will not set an appointment to view the home. We like to have one to four inquiries every ten days, depending upon the price point of the home. The second factor we track is the number of showings. Homes receiving one or two showings per ten days are being viewed by consumers as being at market, or close to market value. Market value is the price range where homes receive an offer.
If your home is getting very few agent showings; the property is not making the showings list. Agents and buyers are eliminating your home from the entire selection of homes in your price range. Usually home are eliminated from a showing list because of perceived deficiencies. These deficiencies, compared to other homes in the same price range, could be the home is smaller, less finished square feet, a perceived/real location dilemma and/or older or not as many features compared to other homes in your price range. If the showing comments are generic or negative, OR if you are not capturing showings, your house is probably 8 to 10% overpriced for the current market.
I hope this information is helpful for understanding the current market activity and today's buyer behavior. Feel free to give us a call so that we can discuss the activity and pricing of your home.
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Tami DeLand and Steve HansenSaint Cloud and Central Minnesota REALTORSColdwell Banker Burnet(320) 258-6675---
St. Cloud Real Estate, Condos, Homes for SaleCentral Minnesota Real Estate---
Labels: PRICING A HOME, SELLING A HOME, SHOWINGS
