Sellers Need To Reduce Prices Now!
Every day I review the market here in Folsom. I am looking at homes that have been on the market for over 30, 60 and even 90 days without a price reduction. If you (and your agent) are not reviewing the pendings/solds in your area very couple of weeks and determining if you are competitive in your pricing you are going to be trying to sell your home for a very long time. If a home has been on the market for over 30 days with no offers, it needs to be reduced. There are buyers out in this market looking for homes. Home prices are going to continue to go down. And more homes will come on the market in the next several months. Sellers need to be ahead of the curve if they have to sell their home.
We are just starting to see bank owned properties, reo’s(real estate owned) properties close escrow. These are typically sold less than the current market rate because the banks do not want to hold on to them. In December out of 44 homes that sold 9 of them were reo’s. Out of 35 that went pending 13 were reo’s.
These will bring down prices more. And currently the appraisers are using these as comps, which will bring all home appraisals down lower than if they weren’t being used.
As a seller you should be in the lowest 10% price range of comparable size homes you are competing against.