Market Conditions for Hockessin, Delaware Reported by John Luca, REALTOR Updated November 15, 2009.

Current Market Rating: 2 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 3 1 2 3 4 5 Falling Rising

Statistics show how to sell homes in less time. How? Price it at market from the start.

Sellers commonly ask why can't we just start a little higher and see if someone makes an offer. The reason that idea doesn't work is because when a home is priced above its true value, it doesn't compare favorably with the homes that are priced at their true value.

This is especially true for homes that are in a market where the values are declining. For example, let's take a home that has a real value of $300,000 and it is put on the market at $315,000. The home does not sell because compared to some other $315,000 homes (which are priced at their real value) this home doesn't show as well. $15,000 may not seem like much for a home that is priced around $300,000 but $15,000 is about what a builder (in this price range) would charge to add a sunroom or partially finish a basement. So which house would you buy between 2 houses that are practically identical, and priced the same - the one with the sunroom or the one without it? See the difference?

Now factor in the fact that the market is dropping in value 1% every 60 days - which is what we've recently experienced in New Castle County in the past 12 months. So now the house has been sitting on the market for 4 months without a price reduction. And now its real value has dropped 2% or $6000. Now the house is $21,000 over-priced. Buyers and their agents quickly recognize that it's overpriced and showings have decreased dramatically and continue to decline. Now the only way to sell this home is to have a price reduction of at least $21,000. However, now it's been on the market for 4 months and that may not be enough of a price reduction to get it sold. Had the home been priced at its true value it would have had a much greater chance of selling within the first 2 months. See the chart below that shows homes priced correctly from the start (not requiring a price reduction) sell on average in less time and for a higher percentage of its listed price vs. the homes that required one or more price reductions.

Please feel free to contact us with any questions you have regarding buying or selling real estate.

Respectfully

John & Mary Luca 302-999-6966

http://lindenhillvillage.typepad.com/files/ncc-chester-and-de-cnties-ave-sf-chart-sp-op-comparison-oct-1009-john-luca-1.jpg

http://lindenhillvillage.typepad.com/files/ncc-chester-and-de-cnties-ave-sf-table-sp-op-comparison-oct-1009-john-luca.jpg
Also feel free to contact us for additional Charts and Tables specific to your area

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