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Sellers Need to Understand Today’s Market
Posted under General Real EstateIt is amazing how many overpriced properties are out there right now. Sellers and their agents are living in the past (although some agents take an overpriced listing hoping the sellers will realize the facts and end up reducing). Listings do bring agents buyer calls so I understand how agents take a nice property even if they feel it’s a bit overpriced. But so many homes on the market today are grossly overpriced.I have been showing Orland Park real estate recently and have been dumbfounded by some of the high prices on the homes I’ve shown. I’m working with first-time buyers and it’s easy for them to see which homes are priced correctly and which are ridiculous. There is also so much inventory it gets confusing for buyers. And they’re more likely to make lowball offers because they see the long market times, especially when the home is vacant.
For instance, I showed a home for sale in Orland Park priced at $319,900. It seemed like a bargain, especially after showing another property in the village that had slanted floors throughout and a slanted staircase. This home was not very clean and did not show well. It was priced at $349,900! It was laughable!
In another comparison there was a home right around the corner on a busy street that was priced at $315,000. However, it was in the middle of being ripped apart as the owners started remodeling but didn’t finish at all. What wasn’t ripped apart needed to be completely updated. It was an awful mess so was overpriced even at $315,000.
OK, so all this makes the $319,900 home, which showed very well, look like a steal. Yet it is still available. Why? My clients asked me to do a Comparative Market Analysis (CMA) on the property for them. The automated CMA program I use gave a suggested market value of a little over $300,000! This is based on the same criteria an appraiser uses.
This just goes to show how so many homes are not priced correctly right now. Homes should not be sitting on the market at these high market times. The statement still rings true that “any home will sell in any market as long as it’s priced correctly.”
I’ve been meaning to post this. A couple of weeks ago as I was showing