Market Shifts Require a Shift in Marketing

There is no question that with the significant inventory of both MLS® resale properties as well as numerous new homes sites in the area to choose from, we are in a buyer's market. Typically, current market value of a resale property is established when a REALTOR® conducts and prepares a comparable market analysis (CMA), wherein you look at what similar properties to the one in question have sold for together with what similar properties are currently on the market. With such a vast array of product actively listed for sale, effectively marketing a property using this age-old method under current market conditions may not get the job done.
In times like these when competition for buyers is fierce, extra effort needs to be put forth by both the listing agent and selling agents to adequately evaluate and present each property on it's own unique merits. Too often, individuals are quick to jump to the conclusion that a specific property is "over-priced" compared to others that have either sold or are currently for sale. Recently, I was questioned on the price of one of my listings, a condominium, wherein the agent stated that the price, based on a per square foot basis seemed high compared to others in the complex. In this case I had visited several of the other so-called comparable properties that were priced $10,000 to $12,000 lower. Most had little or nothing in comparison other than street address. They had seen little in the way of renovations or upgrades since new. The higher priced unit had newer flooring, carpet and paint, a gas fireplace, newer appliances, an updated kitchen with new countertops, a new deck and more including a superior location. All of these features added additional value to the specific property which is reflected in the price. When setting the price of a given property, the true method of arriving at current market value is to establish a base price then to perform a number of +/- "adjustments" based on comparing the location, condition, and features of similar properties in order to arrive at a fully "adjusted" sale price. Appraisers routinely perform this task every time they prepare a property appraisal. Agents especially in times like these should similarly evaluate the individual merits of a property to establish a price and marketing plan that reflects the true value and attributes of the given dwelling. Every property is unique and should never be treated as a commodity.
The market has shifted from a seller's to a buyer's market and in order to sell your property, your REALTOR® must shift their mindset and marketing strategy accordingly.