The Pitfalls of Emotional Pricing and Negotiating
Newtonites have been blessed with a diversely employed population, good schools, reliable transportation and easy access to world-class businesses, universities and hospitals. All of these factors have buffered our housing stock from the great debacle. We have experienced some pain; prices down about 9% from 2007. So why do some houses sell and others sit? PRICE and CONDITION. The condition of your house will be reflected in the price.
Factors within your control…
Your property’s distinctive and compelling attributes immediately recognizable
The physical condition of your property (home and grounds)
Ready access to your property for showing
The selection of the real estate professional you choose to represent you
The listing price and terms of the sale
Factors not within your control…..
Your property’s location
An obsolete floor plan (small kitchen, no family room)
Recent property market values
Expired listings with multiple price revisions
Economic and housing market conditions
Emotional negotiating is not going to net the highest dollar for your property. Today’s buyers are not emotionally attached to any house and offers are presented and negotiated as business transactions. Sellers are naturally more emotional but these sentiments must be kept in check. For the past 20 years property values skyrocketed and there wasn’t a lot of tough negotiating on the part of a buyer; they just borrowed more money. Today’s buyers are afraid; they can’t separate Las Vegas and Miami from Newton. Spreadsheets are common; buyers bring their laptops into the car and evaluate the house they have just seen on their way to the next house. They have a budget and they are sticking to it. They know how much the seller paid for the house, how much of a mortgage is left on the house, some have checked with City Hall to see if permits were pulled and what the renovation cost. The typical kitchen renovation is in style for an average of 15 years, while it may have been state of the art at one time, buyers see dated. They are educated and savvy, sellers must be also.
If a house isn’t selling, make it look its best. No second showings-reduce the price. No showings at all—reduce the price. 3 offers all in the same range—that’s the price. Depressing—not at all, the next house is also less expensive.