Today’s Real Estate Market: Price War and Beauty Contest

In today’s real estate market, Alex Charfen, of the Charfen Institute puts it simply, “We are in a Price War and Beauty Contest.”  This could not be a better explanation of the market in South Jersey.  Today, you MUST have either have the BEST looking property or the LOWEST priced property to sell.

Price War

With so much in inventory on the market, pricing the home property becomes imperative to the sale of the home.  Today so many listings are classified as Short Sales, REOs, Estates and Investments allowing South Jersey Buyers to have a ton to choose from.  With so many options, the buyer is going to do their best in getting the most they can for their money. If the property that you are attempting to sell is dated, in poor condition or needs a lot of work, you, are in a price war.  If a South Jersey buyer has 100 similar properties to choose from, it will be the lowest priced one that gets the offer.

Beauty Contest

The flip side of this, is the Beauty Contest.  There is a large percentage of buyers who want a home to be in perfect move in condition in South Jersey.  These buyers may be very busy with work, have a growing family or just do not have the handy skills in fixing up a property. They may not have the vision to see past the broken cabinets, old carpet or hot pink bedroom.  For these buyers, they are looking for the nicest property that they can buy with their money.  These nicer, updated, and staged listings are in another war, the Beauty contest.  If this is your home, you need to make sure you have done everything you possibly can to have your home perfect in order to attract an offer of what you are looking for.

 

Which Home are You?

To be successful in selling your home, you have to come to terms with today’s market in South Jersey.  With us being in a price war or beauty contest, your property must fit in one.  You cannot have a property that is in poor condition and asking top dollar for it.  It simply will not sell, and you as the seller will be “chasing the market down.”  As the days on market climb, potential buyers will sit and wait watching to see how low the price will go.

How to Sell Your Home Fast

So, if your goal is to sell your home fast and for top dollar, identify which type of property you have and prepare and price it correctly.  Pricing your home too high to see what happens and hope for the best is not the best solution. Studies show, a home marketed and priced correctly from the START sells quickly.  The most activity you will get on your property is typically in the first two weeks.  These are the strongest buyers and best potential for getting an offer. This is why it becomes imperative to price, prepare and market your home accordingly so that you have the best chance at attracting that offer.

About Jessica JessicaHoltzman

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