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Contact Powers Team

If you have any questions or need more detailed information, please feel free to contact me via phone at 301.613.7253 or fill out the form to let us know how we can help with your real estate needs.

Office Location 795 Rockville Pike,
Rockville, MD 20852
Phone: (301) 613-7253
Fax: (301) 424-9290

Pricing It Right Is CRITICAL!

No matter the market, pricing a property correctly right at the start is of utmost importance in getting the best offer possible.  However, during a buyer’s market it is crucially important that a seller not overprice the home, because it will sit on the market longer and by the time a price adjustment is made you may be trying to play a cat and mouse game with buyers on your pricing, driving the value of your home lower than if you had priced it right to begin with.

Every market is different, but in some everyday a home sits on the market it is devalued even more.  The following graph will try to illustrate the concept.  

 

Notice that pricing your home higher than buyers are willing to pay causes your home to sit on the market longer.  When your house sits on the market several weeks, buyers view that as an invitation to devalue the home even more.  Significant price drops will help you catch up to buyer expectations, smaller incremental price drops only cause the buyer to wait until you catch up to the market direction.  If your home was priced at $480K on week one a buyer is more likely to write at $475K or somewhere in that price point.  After 16 weeks the buyer knows is can receive a better deal because there is so much time on the market.  There is a perception that the home is not worth as much because of the length of time it has been active.

More articles:

  • The decision to sell
  • The difference between a buyer's and a seller's market
  • Do I need a Realtor to sell my home?
  • Staging - what is it and why is it necessary?
  • Pricing it right is critical
  • What determines a home's value?
  • Marketing your home
  • What to expect after listing your home for sale
  • Home Improvements
  • What are disclosures?
  • Short sales, foreclosures, and bank-owned properties (or REO)
  • Lease options
  • Offers
  • Multiple bids
  • What is a seller subsidy?
  • Negotiating offers
  • Now that you have a contract on you home
  • What should I expect at settlement?
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    Flip or Rental?! Watch the Change! (My latest investment property)

    See the video below of 505 Ellrose Court!

    http://freedomstudios.com/505EllroseCourt

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    What is the Obama administration's newest attempt at hedging future foreclosures? Hafa video!

    mortgage_300

    Only a few short years ago, even Real Estate Agents did not know what a short sale was!  My, how things have changed... 

    Banks have estimated that the majority of short sales will have been processed by 2014.  More than 1 in 4 of all homes are now backed my mortgages that are worth more than the collateral that secures them: the homes themselves! 

    The Department of the Treasury recently put out a new progam called HAFA (Home Affordable Foreclosure Alternative), which should make things more standardized...

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