Pricing is Everything

I was fortunate to have been involved in two luxury homes sales recently.  I sold a bank-owned property and another Realtor sold one of my listings, both in the “over a million category”.  This activity is not just unique to our team, rather it is a great indication that the upper end market has changed dramatically at the Lake, over 30% from the previous year.

These two transactions were very similar, and both came down to tough negotiations.  The buyers were typical of the buyers we see in today’s market; savvy and well educated on the market, financing, and very qualified.  Both sales came down to a negotiating factor, not considered in past markets; the rate and terms the back was going to finance at.  This was new to me since most sellers don’t have the option of offering incredible loan terms as a motivating factor.

The buyers are in control in this market, they are going after “the deal”.  If you are a seller don’t get discouraged when an offer comes in at 70% off the list price.  This happened in the other sale of mine.  I had the listing in nearly the 3 million dollar range a few years ago.  I kept educating my seller on the market statistics.  We had to stay in the market and keep dropping the price to get offers.  When the showing activity increased and the offers stated coming in we knew we were at the correct price.  The last price adjustment actually led to multiple offers on this property.  The buyers still wanted to offer less starting out.  My seller stood strong.  In the end, we came to an agreeable price and the buyer realized there was nothing on the market that could compare to the deal he was getting, the seller in essence had done the negotiating already.

There are many homes in this market that will not sell if the price is not correct.  If you are a seller on the market, you need to ask yourself “am I ON the market or am I IN the market”?  There are buyers out there, and if you are not getting showings you may not be competing.  If you need help realizing your correct price to be IN the market, feel free to give me a call, or visit my website at www.ownthelake.com to learn more.

Gary Zeiger

Buyer’s Specialist

Gary moved to the Lake from the St. Louis area, where he has experience in sales, purchasing, manufacturing, and property management.  He attributes his success to a lot of hard work and knowledge of the ever changing market.  He will work diligently to find what you want and has a wide range of experience in all aspects of Real Estate.

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