In many areas of the country this rule may have slight variations, but in Sacramento in 2014 it pretty much applies across the board.When you put a house on the market and you have no showings in 10 days or have 10 showings and no offers, then you have failed in one of the key areas necessary to sell your property.Those key areas are Price, Condition and Terms.The market speaks volumes when it comes to all or any one of the above. Many Seller’s feel that they want room to negotiate when they set their price. With whom are you going to negotiate if there are no offers? Also, many Seller’s do not want to do any repairs or maybe let the house only be shown when the mood strikes them, both are setting you up for bad scenarios down the road. There are Buyer’s who have been waiting for your home to come on the market, they are much more knowledgeable than Buyer’s of past eras in that they have been researching on-line and going to open houses and even writing offers. They know value. They base their decisions on their and their agent’s experience. If a home is not priced according to the current market, they know, and they act accordingly. If a home is in sub-standard condition or is wrought with deferred maintenance issues, they know or will as soon as inspections are done. Agents also know the market, and know their customer’s. They will be hesitant to show a property that does not fit market pricing or is going to cause a ton of issues during the contingency period. Why should they get involved and have their clients miss the next better opportunity or spend money on inspections that will just confirm the obvious. I have always said that we don’t just sell a house once. We have to sell it three times, to the agents, to the Buyer’s and again to the appraiser’s. All three of those groups will determine if your house is priced right in the condition presented on your terms.If you have been on the market and have not had any showings or had a lot of showings but no offers, remember the rule of 10. If you are putting yourhouse on the market expect the rule of 10 to apply.
Average List vs Sold Price
Many Seller’s will argue that the home was not marketed properly and that is why there have been no showings. This may be the case if the home is not put in the local MLS (multiple listing service) or is totally unique to its location. That being said, why is it not in the MLS? Was the uniqueness not addressed at the time of the listing? With all of the data feeds going out on the internet, marketing is still necessary on individual properties but not as paramount as in times past. All of the marketing in the world will not serve as a substitute for value. What marketing will do is expose a property to the greatest number of possible candidates for a certain property. Those candidates will make a statement, either in writing or by lack of action, about how any property fits in the current inventory.