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In September I posted a blog and video about two sales. That story focused on the loans involved in the separate sales. Today I would like to share a new story about two listings, one now pending, the other home remains unnecessarily unsold. Why one is unsold and the other sold illustrates the complex marketplace buyers and sellers are facing today.
What do these two homes have in common are more than you might expect. They both sit in a quiet residential neighborhood on the peninsula. They both share the same number of bedrooms and bathrooms and the square footage and lot size are almost identical. They even have similar upgrades and both are presented to sell…… And there is more, these homes are on the same street as a matter of fact they are next door to each other. What they don’t have in common is what makes this story so compelling.
You see, this home was a pending sale after 11 days on the market and the seller had five offers to choose from.
While this neighboring home has been on the market close to 180 days and has two price reductions totaling $40,000 and still remains unsold.
Essentially the two homes are virtually identical in every way and both sellers have done a great job with presentation…so what did the seller with the unsold home do wrong? …or asked another way, what did the seller with the pending sale do that the neighbor didn’t? There is one glaring exception to their similarity; one seller is ready to move on and the other is not.
It turns out the one difference was in the original asking price. Markets are constantly evolving and the best strategy a seller can follow today is to offer the home for sale at the bottom of the market value price range. Remember, both homes have location, upgrades and presentation going for them, however only one seller has priced correctly.
A close look at recent sales indicates a market value range from the low to mid $800’s. The home that is sold was priced just under $800,000 while the unsold home started out above market value at nearly $900,000 and has two price reductions totaling $40,000. Frankly, it is still priced to high. When homes are overpriced the seller ends up with one of two things, no offers or low ball offers.
Of course that is exactly what a seller doesn’t want!
When it is all said and done, I suspect that the unsold home will either be taken off the market or will end up selling for less than the neighboring house did.
As a seller, how do you learn something about the market, considering the sellers mistake? First, you select an agent that you trust, an agent that welcomes your business, understands current market conditions, has a written marketing strategy and keen negotiating skills. And second, by listening and heeding the advice of your agent, especially when it comes to presentation and asking price. In today’s market the highest selling price goes to sellers that present their homes in market ready condition and price them right in the first place.
Remember, it’s not the seller, or the agent but the market that sets the selling price. There is a big difference between pricing your home to sell vs. pricing to have it for sale. 
Agents that are market experts won’t do their clients the disservice of overpricing.
If you have an interest in Bay Area homes you will find what you are looking for at our website, www.AboutBayAreaHomes.com.
There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller strategies, staging and decorating, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more. Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.
Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.
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