Then and Now

What a difference a year makes for the nation's real estate markets. Last year at this time, you would have heard talk about high prices and rising inventory. Some wondered whether the landing would be "soft".

Today the tone is completely different.

In this article in today's LA Times, readers learn that the seller can't just set the price at ten percent above the last comparable sale.

SAVVY sellers take note: It's all about pricing, pricing, pricing. Not last year's. Last month's.

That's the word from sellers and agents across Southern California facing the realities of this fall's buyer's market.

"Pricing is critical," said Sean McLin, a Los Angeles-based ZipRealty Inc. agent. "Buyers start their search from there."

It's not easy being a seller today, what with homes on the market seemingly everywhere. Should owners underprice or stick with neighborhood comparables? How long should their homes be on the market before they consider lowering the price? What else can they do? Migraine, anyone?
...
Know when to lower the price. If a house sits on the market more than six weeks without much buyer interest, it's time for a few changes. Spruce it up. Stage it. Add nice furniture and remove the clutter — and lower the price.

Part of the problem for sellers is that they're competing with builders who now advertise and sell homes like they were selling automobiles.

ooo

Two weeks of cartoons from The Economist: