Do Not Go Gentle Into That Good Night : Why You Should Not Sit On your Listings During The Summer

Today’s real estate market is moving faster than ever, it seems, with a new narrative at our fingertips every couple of months, versus every other quarter in previous years.   I am seeing many sellers out there whose properties are languishing on the market.  These sellers fall into two categories, those who listed at right time but with too high a price and those who listed too late.  This post is for them both.

Here is the current narrative to consider.  Q1 of this year was quite strong as we all know; sellers who wanted to sell priced their properties well and were able to close relatively quickly, at prices higher than had been seen in the previous, beleaguered year.  By the time the news of this market shift hit the market, we were in Q2.  It took an extra month or two for those on-the-fence sellers to first believe the market shift and then finally list, which for many occurred in May/June.  By that time, of course, the market had already begun slowing down.  Unless a property was priced very well and had a little something extra to it (be it outdoor space, stellar renovations, etc.), chances are it may still be on the market today. 

If you listed your property over the last 6 months and it’s still on the market, it could be easy to just write off the month of August and wait for the tide to turn.  My advice: don’t.  Don’t count on September or later to revitalize your strategy, as you don’t know what the Fall will bring. 

Here is a set of actions you and/or your broker can take now to make every day, week and month count:

·         Rerun comps:  understand where a property like yours closed over the last 6 months, and look at current asking prices to understand your property’s competitive positioning in relation to what’s for sale in your neighborhood

·         Adjust pricing:   armed with this data, adjust your price accordingly (i.e. downwards).  If it still lingers on the market come September, adjust once again, as you will then have access to the higher traffic that the Fall typically brings to generate some good amount of interest.  At that time, worry less about pricing “too low” and more about creating a sense of urgency and even a bidding war based on your lower pricing. 

·          Refresh your marketing efforts:  do another mailer, create an additional marketing push.  If your photos aren’t great, re-take them.  If you only have a minor description of your home, substitute it for a robust one.  Change up your ads and property description to reposition the apartment anew.

Why is any of this worth it now?  You’d better believe that anyone in the market right now (July and August) is serious; everyone else is taking the summer off.  Sure you have a less voluminous set of buyers, but the volume that’s there is serious and has likely been looking for months.  Only by being proactive can you take advantage of market opportunities.   The bottom line is to truly listen to the market today, and what it’s telling you in the present.  Otherwise, you will either be employing a lagging strategy based on past data or counting on a future that may never materialize.