In the latest Illinois Association of REALTORS® Broker Sentiment Survey, real estate brokers surveyed noted short sales and foreclosures continue to affect seller pricing combined with lingering effects of a tightened lending environment for buyers. Every market is different, however. Some areas of the state are less affected by foreclosures and some are seeing lower inventories especially in the lower-price tiers.
The complexities of today’s market underscore why now, more than ever, it’s important to work with a REALTOR® to properly gauge local neighborhood conditions.
Pricing remains a tough yet pivotal issue for sellers, so we asked Illinois brokers for the pricing strategies they see working. Here are some responses from the survey.
- We review pricing with sellers on a regular basis, using the Illinois Association of REALTORS® quarterly market reports and MLS reports to determine when a price reduction is appropriate.
- Inflated pricing may reduce showings and if sold the property may not appraise.
- More than just comparable, the price set must be competitive. Listings must be one of the best values in their market. If it isn’t shown in a month, reduce the price.
- You have to be realistic in this market. Review market times for active listings and the closing price for comparable homes that recently sold.
- Overpricing a listing is not the best strategy for this market.
- It’s very important to understand current market conditions and have reasonable expectations related to price and time on market.