Sellers naturally think a lot of their houses — it’s their home, where they’ve made memories, raised kids and/or pets (or themselves).
The hard part is telling a seller client that their product is not worth what they thought it was, whether I’m representing the buyer or the seller.
Home prices are sticky, in part because most sellers don’t move every 7 months or 7 years. They pay attention to their market, and pay particular attention to the highest price for homes that have sold near them — and that price is their anchor.
Sometimes, the potential market/sales price may be higher, sometimes lower. Everything depends on the market when you list or buy your home. A few things that might be different between now and when you saw that high price:
- Interest rates
- Inventory might be higher or lower
- Similar houses near you might have sold for more or less
- That high price house might have had upgrades or interior finishes that you didn’t know about
- The right buyer under pressure might have come to town on that particular weekend after receiving a windfall on their house in their market, and the Charlottesville area home prices are *cheap* comparatively.
You just never know until you start the research.Emotions matter when negotiating peoples’ homes and investments. I acknowledge and appreciate the feelings, and let the data make the argument.
Price Matters
Or, the two weekends of disappointment theory.
For the past several years, this theory has held.
If you’re not under contract after the first two weekends, you might be overpriced. In other words, if you’re not under contract after the first two weekends, a price reduction might be in order, because today’s buyers are watching the market in their specific market segment like proverbial hawks. They know the market.In the Charlottesville area market, and most of the United States and much of the world, there simply are not enough homes – that are right-sized for the buyer demand – to satisfy demand. People are staying in their homes longer than ever.
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Hopefully, home prices will stabilize and not have 5% – 20% appreciation year over year. Society will benefit.
Interested in Learning More?
I have been been representing buyers and sellers in Charlottesville, Albemarle, and Central Virginia since 2001. Get local insight born of experience.
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