Here's a real example of someone who needs to sell. Unfortunately this person needed to sell over 3 years ago, too. That's when she used a bridge loan on her existing home to help finance the purchase of her new and more expensive home.
As you'll see from the MLS and FSBO history below (working from the bottom up), this seller first put her home on the market in November of 2005 at a price of $429,900. Now it's still on the market - at a price of $329,900. With each price reduction her listing became more competitive, but her home remained over-priced. Meanwhile the value of her home decreased as the market softened.
...then listed on the fsbo market for 6 months...
The scenario above is a fairly common one in today's market. Quite often there's a big disconnect between what a seller wants and expects from his listing and what the market will bear. Accepting the market price can be a tough pill to swallow in some cases. But for someone with two mortgages in a downward trending market, time is money, too. For more information on pricing, you'll find these articles on the DaneCountyMarket selling real estate page useful:
- Market value versus assessed value in Madison
- Pricing your home
- Understanding price trends in your neighborhood
Have a good one,
Dan Miller, Keller Williams Realty and DaneCountyMarket.com
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