Homebuyers "Swarm" New Listings.

During the first 30 days of a listing many prospective homebuyers visit a newly listed home, but if the home is still unsold after 30 days, the prospect traffic will significantly drop.  Like it or not, homebuyers are guided by REALTORS® who are cognizant of the value and excitement of new listings on the market.  Real estate offices often "tour" new listings, but seldom return to a home after it's been on the market 30 days.  You must price your home to sell within the first 30 days to achieve the best and highest quality traffic.

Original Listing Price.  Contributing to this "Swarm" phenomena is the Original Listing Price of the home.  If priced "in" the acceptable market range it is perceived by the homebuyers and the REALTORS® in the market as a good value...in other words it is priced similarly to homes that have sold in the market within the last six months.  Prospective homebuyers do not live in a vacuum and as a result have good knowledge of the price of competing properties.  According to the National Association of Realtors, a home that is priced correctly will bring more serious offers from qualified purchasers than one that is overpriced to provide negotiating room.  "Most buyers will make a reasonable offer on a competitively priced home than will shoot a low-ball offer on an overpriced home".  So, we caution against the overpricing pitfalls, including "building in negotiating room", "testing the market" and pricing a home based on the "needs" of the seller rather than the dynamics of the market.  Remember, the market will ALWAYS determine the value of your home.

Overpriced Homes.  The failure to recognize the need to price the home correctly often results in an "Overpriced Home". Historically, overpriced homes will eventually sell (if they ever do) for a lower price that is usually below market.  The Comparative Market Analysis can help the Seller understand the current market in several ways.  There will always be homes that were overpriced in the market, and their history will be revealed in the Comparative Market Analysis.  Homes that have been offered at a price above the market will be classified as cancelled or expired, because they did not sell at the offered price.  This information is available for all REALTORS® to see and show their clients.  Remember, over 85% of all real estate transactions are with buyers who are represented by REALTORS®, and because of the duty to their clients, a REALTOR® will review the market with his client before they make an offer.  The CMA also reveals the number of days a home has been on the market, plus any price reductions that have been made.  The entire history of the home's ownership, efforts to sell the home, and previous sale amounts are shown on the MLS, so your potential buyer will know what you paid for your home and if you have tried to sell the home previously.