August Panic

It's August and panic is setting in for some sellers as they realize that summer is coming to a close without their properties going into escrow. Prices are starting to drop on a few homes, but it may be a case of "too little, too late." On the other hand, buyers who don't mind moving kids after school starts (and for some school districts that have an early start, that's next week), this could be a good time to get a bargain if their credit is in order and their lenders can move quickly.

Some clients of mine who needed to sell quickly were smart, lowering the price of their house a second time in July and then raising the commission to outside broker. They swiftly got into escrow with a buyer who was just approved to their new list price, and she needed help with closing costs, but the main thing was that her lender could get the loan funded in time for them not to lose the house that they’re buying.

Another couple I know wasn’t so lucky. They made an offer on another house after listing theirs (not with me), but no one bought theirs, and now they’ve fallen out of escrow. They cancelled the listing to rethink things, and we’ve begun discussing strategies to get their house sold. They’ll try to see if they can make another offer on the home they lost out on once they get theirs sold. It won’t be easy, but then the other sellers are also in a bind and need to sell, so we’re going to stay positive and do our best.

Here’s an AOL real estate article about the need to drop prices in order to sell soon. While it mentions other regions that are harder hit than the Inland Empire, sellers would do well to read it.

Is it time to cut your price?