If you go back to your high school or college economics class you may remember that the price of anything is determined by supply and demand. The law of demand states that when a market demands a high quantity of a good or service, the price of the good or service will be high. When the market demands a low quantity the prices will be low.
This model holds true in the real estate market as well. So to set a bottom in the market we need more demand or lower supplies. Realtors do their best to increase demand but one thing that we can do for sure is to get rid of our overpriced listings.
Get rid of your overpriced listings.
We won’t see the real estate market bottom out until the number of properties currently for sale is reduced. The biggest thing that we can do as Realtors is to not renew our overpriced listings and don’t take any more.
One of the biggest challenges when working with a buyer is not only finding them a property they like but finding one that they like with a realistic seller. After all of the horrible news about the real estate market and the recession there are still so many overpriced properties out there.
I haven’t done any formal analysis but I would bet that in any particular neighborhood you will find 25% to 50% of the homes for sale have no chance of selling because of their asking price. If we could get rid of a good portion of these overpriced listings we will be that much closer to finding a bottom.
Why do Realtors take overpriced listings? Continue reading this post