PRICING

October 24, 2006

Over the past couple months several people have approached me and asked me what percentage sellers are discounting their homes since the market is back to a more normal state.

How does one answer a question that is so general?  It is specific to each and every different property and seller motivation.  Seller motivation can change at any time and can go either direction.  This is where my good negotiating skills can come in to play.

Most business-savvy agents will not take a listing that is not priced within the current market.  It is too costly to have over-priced properties in our listing inventories.  Therefore, I’ve found most properties to be priced in the correct price range of the current market and its direction.  This is not to say that there cannot be any movement by the seller - because everything is negotiable.

A few years ago I had been working with some out-of-state buyers and they were finding it difficult to purchase in the California market.  Understandably, our market price-point can be difficult for some people to enter.  They certainly could have made some wonderful equity if they just could have found a way to work their budget back then.

They left California and went back to their home.  However, the day the Stock Market dipped drastically they called me and wanted a to pick-up a great house bargain.  Actually, I was a bit surprised at this request as these folks were mature and I felt they were educated.  Nevertheless, I politely asked them why they felt there would be rock bottom drastically reduced prices in the San Diego market almost overnight.

Story goes - they haven’t purchased a home yet - San Diego real estate has been a good bargain in any market climate.

Posted in Real Estate