While the housing market still struggles to climb its way out the recession, home sellers all over the U.S. are realizing that they’re not going to get what they think their homes are worth. It’s a hard realization to come to, but a necessary one. As Elise Rinaldi of @properties told Chicago Business, “Three years ago, when this decline was still new, people insisted that the market would come back and refused to mark down their listing prices. Now people are accepting this landscape.”
According to a recent study by real estate brokerage @properties, when a listing price is priced right and doesn’t get adjusted, it averages 95% of the listed price at closing.
But when a buyer wants to list higher, in hopes of recouping some of that money on their home? They won’t necessarily be happy with the results. @properties reports that when a home adjusts it prices at least once, it only gets 80% of the original listing price and takes even longer to sell (218 days on the market versus lower-priced homes only taking 122). In line with these findings, real estate agents are encouraging their clients to open with a lower list price.
Pair these finding with recent market trends–Chicago home sales are at an all-time low–and it’s clear that it’s a buyer’s market. Matthew Bollinger of @properties explains why pricing lower from the start works: “Selling a home has become like opening a new restaurant or club: You want the buzz and promotion and red ropes out front right from the start. Lower prices draw lots of couples who want to look, and that creates a positive energy that puts the property in demand.”
So clearly starting at a lower price than planned reaps benefits to both the buyer and seller. Buyers gain more traffic, prompting more competition, and sellers can often find a deal.
Brokerages, too, are providing more incentives to buyers to buy now rather than later. Here at CondoDomain, buyers receive cash back when they close on a house. Check out CondoDomain‘s listings or call us at 877-852-6636.