Woodlands Real Estate Tip: Don't chase the market, you could lose thousands of dollars!
Have you heard the term "chasing the market"? No? Ok... here's what happens.
Often a seller has an optimistic view of the value of their home "We used those long nails and we put two coats of paint on that new siding". So, their asking price is above true market value.
In a rising market, eventually the rising tide will catch up to their incorrect valuation. What happens in a market trending flat or slightly down? Well, not much really... the asking price is "out of the market" and "the market" never reaches it. Worse, the market could move further away from the asking price over time. The seller eventually decides to lower the asking price but now the market has moved away from him and his new position is where he originally was... i.e. "out of the market". This is called "chasing the market".
The best thing to do in such a situation is to get a really good market estimate based on recently sold homes in the area and price your home at our slightly below that. This way your home's selling price should be "in the market" and you have a much better chance to sell.
Have you been in a situation like this? Share your experience & how you managed to sell.