Overpriced Home Inventory Plagues Area Home Sales

At the team meeting today in the Danville office of Keller Williams Realty, the topic of discussion was the high inventory of homes on the market that aren’t moving. Not only are they not moving, but many are seeing few to no visitors to open houses.

Everyone agreed that the number one reason is price. The estimate is that 80% of the homes on the market in the 680 corridor are overpriced. Price reductions of $10K to $60K are happening, but many of these will have little affect because the buyers are chasing the market down.

This means that the new price is probably what the property should have been listed at three months ago. Adjusting the price in this manner keeps the homeowner behind the trend usually resulting in lowering the price further to get the property sold.

When coupled with the incurred expenses of maintaining the property while it is being marketed, this results in a negative net effect of what the homeowner could have realized on the sale if the property had been priced according to what the market would bear when first listed.

Agents weighed in saying that there are many buyers out there, they just aren’t interested in spending their time looking at overpriced properties and spending time and energy in negotiations when there is so much inventory to choose from.

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