3rd quarter reports for Kansas City reveal that home prices continue to be under stress. While sales surged in April and May of this year due to the tax credit, July's 25% drop sent panic creating a gap in year over year sales that continued in August and September.
Even bigger news is that the average price concession in Kansas City increased from 8.5% in July to 9.7% in September. This figure accounts for the sales price to list price ratio as well as other concessions seller's make through the re-negotiation process of a contract. In the month of October, the average sales price to list price ratio was 94.5% - almost identical to September while the number of sales in October was off 38% compared to last year. The expansion of the ratio suggests that home prices may track downward this fall.
This market is a very difficult one for seller's to maneuver. If you must sell your home in this market, you have three choices. First, you can hire a discounted broker who will list the home for a lower commission fee. Little effort will be put into the presentation and marketing of the home and little effort or experience will be given throughout the negotiation and renegotiation process but you can save money on the commission. The second choice, is that you can sell the home by owner and try to save the entire listing side (and sometimes the selling side) of the commission. A seller with time and fortitude can figure out what to do and hope that all the pieces fall together for a successful sale. Lastly, you can seek a full commissioned broker like Group O'Dell. We bring all the resources of top presentation and marketing, continued reporting and updates of market conditions and feedback, top negotiation skills and experience in knowing when and how to hold on to the bottom line, and transaction support so that all the details of bringing the buyer to the table with no surprises is handled for you.
Many of our clients often tell us, "that's great but I'm not going to be moving now". Please remember, if someone you know has to sell their home, the greatest support you can give us is to have them interview us. We will give the the straight scoop and prepare them for a successful sale.
