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Daily Real Estate News | September 20, 2010 | Share
4 Tips for Setting the Right Sales Price
Sellers think their homes are worth more than their real estate professional recommends, and buyers think these same homes are worth less.

It’s a difficult disconnect that makes selling properties a challenge. Successfully marketing a home requires that the price be set carefully — or it will languish on the market. Among the considerations:

* How many homes are for sale in the neighborhood? The more homes on the market, the more important it is to list at the lower end of the scale. “I want buyers to ask why is this house priced so competitively,” said NAR President-elect Ron Phipps of Phipps Realty in Warwick, R.I. “I want the answer to be an offer.”

* Take short sales and foreclosures into consideration when pricing. If the competing properties are in lousy condition, they are less of an issue, but if they are well taken care of, yet priced 25 percent below market, they can be a serious factor.

* Negotiate decisively. “Buyers are not interested in back-and-forth negotiations these days,” Phipps said. “They are less emotional and more disciplined. They will walk away.”

* Cut the price when you have to. If no one shows up for an open house, if no one calls and if there are no offers, then the price is too high. That means it’s time to make a meaningful price cut.

Source: The Washington Post, Associated Press (09/18/2010)

Gwendolyn Place local president of the Southeast Alaska Association iis hosting the State Association this week in Juneau. The 14th. through the seventeenth it is education, and networking for 200 licensees across the state.

More Using the “D” Word
No, we are not talking about a depression here. We are talking about the more constant use of the word “deflation.” Actually, deflation can be considered a depression of prices. We often say that one of the objectives of the Federal Reserve Board is to fight inflation. We can also say that another objective of the Fed is to protect us against deflation, however the threat of deflation comes up so rarely, there is little discussion of the issue. We all know why higher prices are bad for the economy. When consumers have to spend more of their income on staples, they have less money left over to spend and contribute to economic growth. Inflation is typically accompanied by higher rates which also depress the economy. If money will be worth less in future years, banks that lend money have to charge high rates in order to make a profit.
So why would deflation be bad news? Deflation is not only a symptom of a poor economy, it would contribute to the lack of economic growth as well. Why would a manufacturer produce goods if those goods are likely to fall in price below the replacement value? We have such an example right now where builders have found in some areas that homes are selling for less than the replacement costs. Why build a home if you can’t sell it at a price that is equal to the cost of building? Here is the good news. Natural population growth in the world has put so much pressure on natural resources such as energy, it is not likely that deflation will become a problem. It is more likely that the slow economic growth we are experiencing will be accompanied by low rates of inflation and therefore low rates such as we are experiencing. And this is a good thing, because we need these low rates if we are going to continue to grow out of the slump. A little inflation right now is good news but increased rates of inflation while the economy is not growing would be bad news. Then we would be discussing another bad word: stagflation.

Sellers don’t realize that even a small mistake in pricing can effectively render them invisible to buyers. People don’t drive around looking for signs – they tend to have a maximum number that they can play with and if theirs is $225,000, your home that you prices at $235,000 with $10,000 worth of “wiggle room” will be screened right out of their search.

http://www.212movie.com/node/103 Check out this short inspiration sent by my friend Jerry Rossi of Rossi Speaks. Jerry is an entertainer and educator on national speaking tours for many industries. In Real Estate his Dog Eat Dog and Visa Versa book is a must read. Check out his site at Rossi Speaks. He is awesome, relevant, and current on trends in success, social media, personal growth. Mike

Thank you all for supporting the freedoms earned through the efforts of our men and women in the military.
GOD BLESS THE USA

Recently I was enjoying my cabin, raised money for the Elfin Cove Volunteer Fire Department as they did a stellar job with limited equipment to avert total devastation of the community. On return my friends at AAA moving had my back helping in completion of a sale by moving goods north. The AAA Moving affiliations with national transport and storage are so sweet. If you have a move call my friends at AAA Moving they will treat you well and your goods even better. 907-780-4374 ask for Dan he is in early and stays late. The head man is tracking movements that would be Phil and I think he is the Allied Moving representation for the state. If you have a move call AAA Moving and get on with your life. Mike

We salute the Veterans. Thank You

Errol Champion Associate Broker and Mike Race Broker/Owner of Coldwell Banker Race Realty the oldest national real estate franchise in Juneau are honored to have received the N.A.R. designation S.F.R which stands for Short Sales and Foreclosure Resource. Mr. Champion was a leader in and continues to help those in need of counseling in regards to possible mortgage modification, Deed in Lieu of Foreclosure, or Short Sale actions and communication with lenders and agencies.