Posted by Todd and Melissa Rolland at Mar. 20, 2016
The real estate agent has been hired and the listing priced chosen. The recommended repairs, upgrades and staging has been completed. The photos have been taken. The For Sale sign is in the yard, the lockbox is on the door. The house is now "live" on the Multiple Listing Service. And, wow, the house has been on the market for two weeks, and getting at least a showing a day. The "viewings" on line are climbing. Things are going well... or are they?
Plenty of showings. Plenty of viewings on line. No offers.
How often have we heard this statement, "Our realtor told us as long as we get plenty of showing requests that we are priced right."
Don't shoot the messenger: No, it doesn't.
Plenty of overpriced homes get lots of traffic at first. Picture it like this. Buyers are waiting for their instant notification alert by email or text from their agent for the houses that meet their criteria to come on the market. These new listings will generate all types of interest from buyers who have been waiting for inventory to go "live". These actively looking buyers have more-than-likely seen several houses already. They are educated about the market, and know value for the dollar when they see it. If they don't see value in your home, they'll pass on it, and wait for more houses to come on the market. This "bump" of activity usually lasts about two weeks, and then after that, the showings tend to become less frequent, as new-to-the-market buyers enter the market place. Instead of the buyers lining up to see your house, you're left waiting for any activity at all.
Worse yet, maybe your house is helping to "sell" other houses. Compared to similarly priced homes, does your house offer the same, less, or more features and benefits? If there's no value in the eyes of the buyer compared to other similiarly priced home, the offer will go elsewhere.That is, to a home where for the same price, they feel they are getting "more". So, when showing, and given an option between your house and another, they pick the other. Congratulations--you just helped to sell a house, and it wasn't yours.
The National Association of Realtors tells us that 2 weeks without a showing, or 10 showings, no offers, means the house is overpriced.
Did you list your house to sell it, or did you want it to sit on the market month after month?
When a house is priced right when it goes on the market, it causes activity similar to an auction mentality. Very quickly buyers will see the value in the price of the home (that is, more features and benefits, for the "right" price), and sellers may find themselves in a multiple offer situation, that ultimately may drive the price up.
Many showings (or viewings on the internet) doesn't necessarily mean that all the price is right. Many offers, and ultimatley a "Sold" sign in the yard, does.