Dear Kathe,
If its such a hot market this spring, why are so many homes still on the market?
In some parts of our country, a hot market is defined by homes that hit the market and sell almost instantly with multiple offers in excess of the asking price. That is not how a hot market is characterized here in Sewickley. Here, when we have a few homes that sell in the first week of their listing, and when those sellers realize in excess of 95% of their asking price, we consider the market to be “hot.” In a Sewickley “hot” market, not every home will sell quickly or for a high realization.
Even in our best market, Pittsburgh is a very value-driven city. In other words, buyers here are concerned about whether a seller establishes value and whether the data suggests that the value will be there should they resell the property in the next 2-3 years. Value can be conveyed in many ways. Establishing your basis in the property by providing detailed information about your improvements will help a buyer understand the value you are offering. Correct pricing will also help establish value – its very important to price your home by applying the proper dollar per square foot range to your documentable square footage.
For example, if your home needs some updating, applying a square foot value that has been established for a totally redone home is not going to convey value to a buyer. There are many other factors that will influence a buyer’s perception of value, such as quality of work completed at the property (a handyman special is not only obvious, but likely devalues your home) and the quality of the amenities (higher end appliances will create a higher feeling of value, for example).
In the end, even in a hot market, Pittsburgh buyers keep a level head about themselves and are going to be looking for value before they prepare an offer on a home. If a home has been on the market for the entire spring and has not sold, or if it has received offers that were below what the seller feels the home is worth, there is a high likelihood that buyer perception of value does not align with the asking price and some kind of an adjustment will be required.