Builders’ New Selling Strategy – Should Home Sellers Follow?

For Sellers in Princeton, as well as across the country, the chill in the housing market raises questions as to what new marketing strategies should be employed in this market. According to National Association of Realtors sales of existing homes declined 4.3% in August – the slowest number in 5 years. There is a 10 months supply of homes for sale at the present rate of sales; two years ago this number was 5 months. The forecasts from the economists do not sound promising until 2009.

The homebuilders have historically been attuned to markets and aggressive in coming up with new strategies. They pioneered the concept of Staging – something many existing home sellers have adopted much later.
                                                                                                                                            
So, what are the homebuilders doing now and should Sellers of existing homes take notice?

• “Deal of the Century” –is what Hovnanian called their 72 hours sale over the weekend. They offered discounts up to 30% and sold 10 times the usual weekend number.

• D. R. Horton this weekend is holding an auction of 53 homes in San Diego. The starting bid for some homes are 50% lower than before.

• Lennar – is saying that they are not following suit, but there numbers are not promising. Their average home price declined 6% in 3d quarter. Their incentives per home increased from $36,000 to $46,000.

As the ripples of the housing market slowdown continue to effect many sectors of the economy, with Lowes among others revising their earnings estimates, home Sellers have not yet adopted new strategies, or perhaps not adopted yet to the new market reality. The reality check is something that the Sellers need to understand. Unlike stocks or bonds, homes have a big emotional component. However, when it comes to selling or buying real estate the same market rules apply as to other types of investments: it's worth what someone is willing to pay for it. Real estate agents need to be proactive to bring this reality to their clients. To read more about how to sell your home now click here.

 

Please call Faina Sechzer at 609-553-4175 to discuss how to sell your house now.

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Faina Sechzer - Princeton, Montgomery, Hopewell, NJ Real Estate Expert
Henderson-Sotheby's International Realty
Princeton, NJ

Office Phone: (609) 924-1000 Ext.: 144
Cell Phone: (609) 553-4175
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