East Bay home prices

2009 East Bay Real Estate Pricing Strategies – Jim Walberg’s Recommendations!

When a Seller is considering a pricing strategy for their home, it is critical for them to not get caught in the trap of listing a bit high and hoping for someone to pay top dollar.

As we move through the last few days of 2008 there will be a large number of Sellers who will be putting their homes up for sale in the East Bay in the first quarter of 2009.  There are many factors that are now in play that will require a Seller to be VERY smart regarding their pricing strategy.  It appears that consumers are still thinking that the price corrections of the past 13 months are not over.  Consumer confidence  continues to be a key factor as to why many Buyers are still waiting in the wings and not making offers.

The East Bay is still in what the mortgage lenders and banks  have listed as a “declining market”  when they are having homes appraised.  The worst situation for a Seller today is to price their home at the top of other similar homes in their market area.  The situation to avoid at all cost is price cuts after price cuts because the home started way to high.  This creates a situation of “death by a thousand cuts”.  The home contracts a “virus”  among Buyers as if there must be something wrong with the home, and it attracts the “bottom feeder”  Buyers thinking it must be a home that could be stolen.  And, from my experience, there are very few Sellers that want to consider pricing their home aggressively from the first day it is on the market.

The 2009 price strategies include finding a Realtor who very experienced with a Buyer’s market, and who clearly understands local market conditions.  Next there are several critical steps in the pricing process that must be addressed.

1. Review similar homes that have sold in your local market area in the last six weeks.  Remember, all real estate is local, not national.  Carefully study these sold homes regarding their condition, location, closed price and days on the market.
2. Prepare your home in turn-key condition.  The large majority of Buyers are not investors.  This is the home they will be living in.  With the large number of homes from which to chose, a Buyer is typically not looking for a fixer-upper.  We also recommend that a stager be hired to prepare the interior of the home in model home condition.
3. Location and condition are still key factors when you are finally ready to pick a price. The price of the home needs to be the top one or two values of the current comparable listings.

After the home has been launched for sale, if it doesn’t sell quickly, drop the price fast so you are not caught in downward spiral of price reductions.   For the Sellers that follow these basic rules of the pricing game for 2009, there are Buyers who will be taking action and purchase homes.  And, interest rates are GREAT!  There are Buyers who have been waiting in the wings that need a home in the first quarter of 2009.  Make sure you are the Seller who delivers the best package and price possible for this group of 2009 Buyers.

For more information regarding pricing and marketing strategies for Sellers, contact me anytime.  Your East Bay real estate detective is always on duty.