Cream of the Crop, Bottom Feeder or Somewhere In Between?
Why do some houses sell while others seem to forever linger in the sea of inventory? Well, it seems there are several different levels to this sea of inventory in Indianapolis and buyers are either skimming off the cream or diving deep under and feeding on the bottom! -- Everything in between is invisible!
Levels of the Inventory Sea!
Cream of the Crop... Offer the most features, best price, best location, most updates, best finishes, best condition -- You get the idea! They float along the top, waiting for buyers to quickly gobble them up!
Always the Bridesmaid, Never the Bride... Priced "About Right", consistently in buyers "Top 3", quite a few showings -- but never invited to "the big dance!"
Close, but No Cigar... Somewhat over priced, buyers "like" the home but there are always better options for the same price -- consistent showings
Mr. Cellophane... Looks like all the others on the market -- nothing to set it apart, overpriced, occasional showings -- lingering in the sea of inventory!
Not a Contender... Substantially overpriced, lots of other options at better price, condition, location, etc. --few to no showings -- drowning!
Food for the Bottom Feeders... Priced well below market to reflect condition and circumstances -- Bank Owned (REO), Short Sales, "As Is", HUD's. Lots of activity here -- but different buyers!
The sad part is that seller's lingering in the middle seem to have the opinion that given enough time, they too will rise to the top. It just isn't so! No amount of time will cause a property to float upward. To rise to the top -- a seller must either adjust the price or improve the condition/amenities. As new listings come on the market, the great ones will jump right to the top, ensuring the "stale" listings remain submerged where they will eventually expire without selling!
On the other hand, if an owner must sell, but isn't able to make the adjustments necessary to float to the top, they will begin a steady decent to the bottom where they will eventually end up as a short sale or Bank Owned property.
So what's the big secret? How does a property become the "cream of the crop" in the Indianapolis housing market? Know the competition! -- then either provide "more" for the same priceas the competition (more size, more amenities, etc) OR provide the "same" (size, amenities, location etc) for "less price".
Then, relax... and enjoy the ride!
Originally posted by Steve and Tonda Hoagland on ActiveRain Blog 10/13/2010
Unless otherwise noted, blogs are authored by Tonda or Steve Hoagland