Hats off to all the listing agents who have been working hard to get their sellers to ‘get real’, and adjust asking prices into realistic ranges. What’s happening, though, is that we’re getting "listing jams" at the big price break points, like $299,000, $399,000, $499,000, etc. There are 55 houses, for example, listed between $299,000 and $299,999.
Dropping your price below a main break point is certainly a good idea, as many people search on listings using the break points as qualifiers, e.g. show me all listings in Lumberland or Highland townships between $250,000 and $300,000. And some sellers I’m convinced think that solely dropping below a price break will get their house sold.
Not! First off, a house can still be overpriced relative to the market, even if it drops below one of those ‘magic’ numbers. But more importantly, price is not the only consideration among buyers (although it is an important one). I’m amazed at how many sellers aren’t prepping their houses for sale — sprucing them up, cutting the lawn, getting rid of clutter, painting the front door for heavens sake. Sellers need to think about their house like they’d go for a job interview. You wouldn’t wear curlers and dirty jeans to a job interview (well, maybe some people would, but they probably won’t get the job). Likewise, if a house comes across as the real estate equivilent of stretch pants and curlers, it isn’t going to get a second chance.