It goes without saying that real estate should never be confused with rocket science. The basic principles about how the market works are pretty straightforward. Especially if you’re a seller who’s selling in a Seller’s Market, like the one local sellers have enjoyed for the last five years.
Even when frustrated buyers get a little crazy and express anger over the “unfair” results of one of the latest multiple-offer fiascos they’ve lost out in, sellers typically remain calm and rational, secure in their knowledge about the inherent truths of the marketplace.
But what happens when the market starts to change? And some of those listings don’t sell as quickly as people thought they would? Suddenly, those same tried and true elements of wisdom and logic, so apparent before, no longer seem to apply.
Since we could be heading into one of those transition times in the market, let’s review a few simple rules that are true in every market:
A house is worth what someone will pay for it, and a house isn’t worth what someone won’t pay for it.
At the right price, every house sells. At the right price, all objections disappear.
There’s no such thing as an unsellable house. Only one listed at an unsellable price.
Definition of market value: the price a willing buyer and willing seller agree on. Every sale is its own best comp.
An appraisal isn’t an analysis of market value, more a justification of the price already agreed upon.
What you bought your home for ten years ago has nothing to do with its present value.
Every seller has the right to hold out for that one right buyer who will pay what they are asking. They just shouldn’t confuse this approach with having anything to do with market value.
Just because the market isn’t telling you what you want to hear, that isn’t the same as the market not telling you anything. When no one comes to look at your house, the communication is actually loud and clear: the price is too high.
The longer your house is on the market, the less it will sell for.