When you have listings, it's important to watch market activity that relates to your listed properties. Competitive homes or land listings will come on the market, be sold or withdrawn and there will be price changes. On behalf of your sellers, you must be aware of this and advise them about market changes.
1. New Listings the Compete with Your Listing
There is a definite relationship of selling price to supply and demand in real estate. If new listings come up that are similar and in the same area as yours, it's important to know and evaluate the possible effect of these additional competing properties.With an increase in inventory, there is more from which the buyer can choose. It could mean that a price decrease is at least open for discussion if several new properties come on the market in competition.
2. Listings Removed from the Market or Sold
Status changes, such as withdrawn listings, those that go under contract or those that sell could influence the price of your comparable listings also.As discussed above, increases or decreases in inventory can influence pricing of competing listings in an area. If the inventory drops for any reason, you may be able to increase your listing's price (or defer dropping it) to reflect fewer homes from which to choose. This might be a tactic in a popular area with fast-moving properties.
3. Competitive Properties Price Changes
Needless to say, if comparable and competing listings in an area are lowering or raising prices, the real estate agent needs to be aware and advise their listing clients of any required actions on their part.Market valuation is an ongoing process and cannot be allowed to stagnate. If there are seven homes in a subdivision for sale, including your listing, and three or four drop their prices significantly, you need to be aware and act accordingly.
