South County Real Estate Today

Chasing that Elusive Downwardly Adjusting Market

June 28th, 2008 // Categorized under: Featured Listings, Real Estate

In conversations with home sellers here in south Santa Clara County, it is important to remind them of the potential of loss in equity in this downwardly adjusting real estate market. Sellers still want to “test the market” by pricing their homes a little higher than the latest comparables are indicating that they should be priced. After the “test” confirms that they are priced too high, they will then lower their list price. This is called “chasing the market down.” Every day a seller chases the market, they may be losing equity.

An important concept to understand in this type of real estate market is that the most competitive price often sells first. The seller who sells first is the seller who jumps the market and is the most competitively priced. That seller receives the highest possible price at that point in time.

The homes that are selling quickly in south Santa Clara County are the homes that attract the attention of buyers and Realtors alike due to their aggressive pricing. These homes are receiving multiple offers and often are selling for over list price. The sellers in these cases sell early during the adjusting market and have more options later. They can stop chasing and relax.

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This entry was posted on Saturday, June 28th, 2008 at 12:20 pm and is filed under Featured Listings, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.