When a home is overpriced (usually at the insistence of the seller) and nobody makes an offer, the seller has three choices: leave the price as is, lower the price quickly, or take the home off the market.
If the seller waits too long to lower the price, he is "chasing the market," as if the home grew legs and began to lumber after the retreating buyers, calling "Pick me, pick me!"
The best selling strategy is to attract the market, not chase it. If the home is priced correctly, the buyers will come. Sometimes it's the price, sometimes it's a combination (including seller financing, for instance).
The last two homes sold in Bainbridge Island (February 11) chased the market.
The first, a 3-bedroom 2-bath home, built in 1988, offered 1965 square feet of living space on a shy half-acre in Manitou Beach. When it first went on the market over 9 months ago, the home was offered at $599,000. No offers.
The price was dropped to $575,000 in a month, then to $549,000 the next month. But by now it was too late. After another 6 weeks, the price was dropped to $525,000, and 6 weeks later to $499,000.
At that point, the seller apparently decided that his home was not attracting buyers because his agent was not working hard enough (not true: I know the agent, and he's one of the best on the island). The home was taken off the market.
Another agent was offered the listing. The home was put back on a week later at $475,000 (notice the drop in price!). Just over 2 months later, an offer was accepted. The home sold for $455,000.
The selling price was only 76% of the original price. 7 months of chasing the market.
Tomorrow I'll tell you about the other market chaser. This one brought only 38% of the listing price, and it had to chase even longer.
Here's the second market chaser. A 1960 3 bedroom 1.75 bath large (3388 square feet) home on a half acre on Sunrise Drive in Bainbridge Island. High bank waterfront with a view and a bulkhead.
