Faster home sale

guest commentary by Ethan Nobles

Realtors throughout the state have mentioned there are buyers out there wanting homes, but a lot of sellers are having trouble attracting them.

One of the most important things sellers can do in today’s market is price their homes well. Realistic pricing is more important now than it has been in the recent past and a Realtor can give a prospective seller a realistic idea of the fair market value of a home.

Most sellers, of course, are inclined to value their homes in accordance with what was normal when the market was at its peak. The problem with that strategy is that we’re coming off an unprecedented seven or eight years of growth in housing markets and assuming a home will attract as many buyers as it would back in, say, 2005 is unrealistic.

Just a few years ago, buyers found themselves in competition with each other. If two or three buyers were interested in a home, a bidding war would often take place and the price of the property would be driven up accordingly.

Today, sellers find themselves in competition with each other for buyers, and a lot of those buyers are looking hard at prices. Let’s say, for example, that there are two homes on a street that are very similar. One of those homes is priced at $140,000 while the other lists for $145,000.

Go ahead and guess which one is likely to attract offers at a time when buyers have more homes to choose from than in the past and are aware that there are bargains to be had.

That’s not to say that sellers should feel compelled to sell their homes at ridiculously low prices. Right now, it’s a good idea to pay close attention to what a real estate professional says is a fair price for a home.

Arkansas Realtors are aware of slowing markets in the state and have spent the past couple of years developing strategies to attract buyers and sell homes for reasonable prices.

Just a few years ago, a popular tactic of sellers was to list a home at a price that was considered just a bit too high and hope someone would make an offer. After all, if the price was too high, there was always room to negotiate.

That tactic doesn’t work quite as well these days as buyers are less inclined to negotiate. If the list price on a home is too high, the chances are good a buyer can find a similar one down the road for less.

Back in 2005, that buyer might stick around and negotiate because competition among people wanting to purchase homes was fierce. That competition isn’t quite so keen these days, so buyers are more inclined to pass up a home with a price they don’t like than they were a couple of years ago.

The good thing about Arkansas housing markets is that prices have remained relatively flat in most areas at a time when stories of double-digit declines in value are common in national markets. Still, the seller who is willing to seek an honest, realistic opinion of how much his or her home is worth will stand a good chance of selling the house in a reasonable amount of time.

Ethan Nobles is director of media relations for the Arkansas Realtors Association.