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by Mike Carraway, Access Realty, Birmingham, AL

A LOT of sellers want to price their home above the market value and they do it for a variety of reasons...

Some say they want to have "negotiating room". Some say, "we can always come down later". And others say, "we just want to see what we can get - you know - test the market."

Theses are all good reasons from a seller's point of view. They aren't, however, from a property marketing standpoint. When you put a property on the market, you want to generate the highest traffic and demand in the shortest time possible and all of these so called reasons to overprice just hinder and impede the marketing process.

Danger #1

Pricing a home above the market value usually results in people going elsewhere and buying. They may love your home but if you have a similar product in your market for a lower price, they'll buy it - not yours. In effect, you have missed your buyer and now you will have to wait and attract another one at a later date.

Danger #2

Traffic and lots of it is what sells a home. Without human bodies walking through your home, it doesn't matter if it's the best deal around or the most beautiful in your neighborhood - it still won't sell. In order to get the most traffic possible in the shortest time, the price must be right from the very beginning. If the home is priced very near what you actually think it will sell for, you will get the most traffic - and offers.

Danger #3

Your home will sit on the market while YOUR buyers go buy other homes. You will have lower traffic due to the higher price and fewer people will be exposed to it. What happens when you finally decide to lower the price? People see the price reduction and it causes a couple of thoughts...

1) I wonder how much further down they will come?
2) I wonder if something is wrong with it?
3) I wonder how long it's been for sale?

Just these three will cause you more suffering from low offers and constant questions about whether you will carry part of the financing or not. You will soon grow tired of it.

The best way to avoid ALL of these problems, especially in a buyers market as we are in right now, is to price your home AT the market. Not a little over but right at the market value.

Want a secret? Price your home slightly UNDER the market value. You will have people fighting over it and will probably receive multiple offers. When you do - you can actually start a bidding war of sorts over your home and may even realize MORE than the market value.

by Mike Carraway, Broker, Access Realty, Birmingham, AL 800-840-0165

Almost any source you looki at will tel you that between 80% and 90% of For Sale By Owners will eventually list their home with a real estate agent. There are a myriad of reasons why this happens but it all boils down to this: agents have the inside track on attracting buyer traffic to the home. They also do it full time so that even when the seller is gone to work, the house is still "for sale" and can be shown.

So, if you find yourself thinking of hiring an agent, which one should you hire?

First of all, consider paying the highest price for a good agent. Interview several of them and then ask them to cut their fee. The one that refuses to is probably your best bet. Why? When it comes to selling your home and getting your proce, you want an agent who is NOT a noodle...someone with a little back bone. If they won't cut their fee and they promise a higher level of service and service quality, then they will also negotiate the hardest in the trenches when people are trying to cut your price on your home.

Second: if the agent you call doesn't answer their phone or call back within a half hour - stop trying to get them. If they don't answer or call back when you try to call them for an interview, what makes you think they will answer calls from buyers for your home?

Lastly, when you are doing the interview and listening to the agent's marketing plan, look for the things that are different. If you talk to 2 agents and they pretty much do the same things... a sign, MLS, and a few ads... keep talking to more agents. What you are looking for is the agent who has a unique approach or ads value by adding unique tools. Agents that use the talking house transmitter or a 24 hour hotline system are some examples. If the agent you hire isn't doing extra things to make your home stand out in the marketplace, you are just going to get the same ole, same ole. Look for something different.

I guess it's now official. The real estate bubble has burst. When the inventory figures for homes show they are going up nationwide AND it's in the national media, you can be sure that it's already been happening for a few months now. The NY Times and Jouranl and just about every other news outlet decided today that it was a story - so I guess it's official.

Those of us in the real estate business have known it for the last 3 months and we could have told you so. We have sales figures and "time on market" statistics that can back up our claims. We have been telling successful sellers what's happening and how to price their homes accordingly. Now - 3 months later, the media is catching on.

The story is that the supply of homes on the market is rising and the number of buyers isn't. What that means to you is that your home will sit on the market longer without selling. In fact, two of the articles I've read state simply that it would take over 6 months to sell all the homes currently for sale. What they leave out is that more homes come on the market every day, further increasing the glut.

As the number of homes on the market increases, it takes further price reductions to get some of those homes to sell quicker, which, in turn, lowers the reflected market price of all homes. Sellers will wait and wait and then lower their price - too late. What they don't realize is that they are chasing the market down.

The market price of their home goes down and then they lower their price just above the market price and wait. While they wait, the market price goes down further, putting them farther and farther away from the market value, until they lower the price again.

So, as a seller, what should you do right now?

Simple, lower your price to a point that is BELOW the current market value. Ask your agent to take some time and do a good market analysis to get a feel for what your home is worth right now. Then, price it below that number. If you do this, you will have hungry and willing buyers lining up to make offers on your home... but only for a short time in a falling market. If you wait too long, and the market coninues to drop, then you will be priced above the market again and have to reassess the situation.

The smart thing to do is price your home low and let the market come to you, rather than chasing the market down. One strategy results in buyers, the other results in foreclosures. But you have to decide which strategy to persue.

Dear Blog Update,

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Because of the change in real estate market conditions, more sellers are competing for fewer buyers. So once again, it seemed important to challenge a long-standing "myth" of real estate.

"The initial listing price isn't that important because the price can always be adjusted down later."

Many homeowners believe this.
It is a myth.
Not true.

If most buyers first viewed your house because of a newspaper ad, a magazine, the internet, brochures, or the sign in your front yard, the initial listing price probably would not make a difference. The house would always be "new" to those seeing it.

But most buyers do NOT come to your house because of various types of advertising. That is the another myth.

Sure, buyers call on an ad, they often LOOK at that house, but not always. Once they talk to an agent, they may discover it isn't what they need (or want) at all.

However, they ARE talking to an agent. That agent knows the current inventory and will know of other property that DOES fit their needs.

Those are the properties that buyers look at, and THIS is how most buyers end up looking at your house, too. Because of other agents, not because of your ad.

Hardly anyone buys the house in the ad.

As a result, you need to get other agents interested in your property, and this is where your listing agent comes in...and why a good listing agent is extremely important. The listing agent gets buyer's agents looking at your home.

Those agents have clients who called in on other properties.

Buyer's agents are not swayed by advertising. They look at the needs of the client, where the client wants to live, location, condition, and other details of the property...
And most importantly....
...price.

If your house is overpriced, agents are going to show similar homes that are priced more attractively. Your listing will get passed over.
Agents pay MOST attention to homes newly on the market. There are fewer NEW listings than current listings. It is easier to keep an eye out for what is NEW, compared to the vast number of current listings.

New listings are on the "hot" sheet circulated in real estate offices. The MLS computer identifies new listings. Your listing agent may hire a service to distribute fliers to all the buyer's agents. There are office previews and MLS tours to showcase new listings. A lot of attention is focused on what is NEW.

With agent's looking at newly listed homes so aggressively, a properly priced home gets attention.

An overpriced home gets passed over.

You may be thinking, "But I'm willing to negotiate!"

Buyers aren't thinking in advance about how much you are willing to negotiate. They are comparing your asking price to other asking prices.

Plus, when your house is new on the market, you may not be willing to negotiate as much as you will later, once you've realized your error. Keep in mind that statistics show, quite often, the first offer is the best offer.

So what happens if you overprice in the beginning and get more realistic later?

You don't have all those important Buyer's Agents looking at your listing because it is NEW. A price reduction later in the listing cycle often gets overlooked. It is just one of many listings, not one of a few new listings.

As time passes, you could actually become desperate to sell because you've accepted a new job or because you have already bought a new home.

That is a recipe for receiving lowball offers, so you could end up selling for less than if you had priced the home correctly in the first place.

Agents know this stuff, but many sellers still mistakenly believe they should "price it high" because they can lower the price later, if necessary.

That is not the best strategy.

Given the IAB and PwC’s projection that ad revenue in podcasting will at last pass $1 billion in 2021 (up from $479 million in 2018), one would think this mediums decade-long slow (really slow) march towards some sort of critical mass has finally hit its stride. Let the gold rush begin, no?

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Johanna Zorn is leaving the Third Coast Festival. The executive director and co-founder of the Chicago-based audio documentary conference will be departing in the fall, and the search for her replacement will kick off later this week. The move was announced Wednesday through a letter published on the Third Coast website.

Obviously, this is a major development for the beloved conference, which has become one of the most, if not the most important gatherings for radio and podcast producers since its founding almost two decades ago. Third Coast grew particularly quickly over the past few years — tracking the growth spurt in the audio world around it — the biggest expression of which was the decision to shift the festival towards an annualized schedule in 2016. (It was previously held every two years.)

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There are big opportunities for the music industry in podcasts, but one of the big barriers is licensing: the cost and complexity for podcasters of securing the rights to actually play music in their shows.

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It seems like only yesterday that this water cooler cliche entered our lives. Twas a simpler time, when people would engage in long-winded conversations without feeling the need to freeze them in time and share them with the masses. But today, thanks to audio editing software and our social media culture, it seems everyone and their mom has taken to the format. Literally.

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Audiobooks and podcasts have been sky-rocketing in popularity over the past three or four years. In 2019, the number of Americans who had listened to an audiobook passed 50%, a first for the medium. Podcasts are also on the rise, with investments from companies like Spotify and Pandora further encouraging a virtious cycle of audience growth and a broadening pool of podcasters.

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To make your search easier, we are going to break down some of the best podcasting microphones you can find right now.

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