The Roseburg real estate market has been booming again, and if your home still hasn’t sold, chances are it’s the price!
The listing inventory is lower than it’s been in years, home sales are skyrocketing, and the average selling price in the Roseburg area is up 7.7% over last year.
All that to say this…
If Your Home Still Hasn’t Sold, Check The Price
If your home has been on the market longer than 45 days, with only low or no offers, you need to seriously step back and consider the listing price.
Truth is, pricing your home even 10% above market value drastically reduces the number of potential home buyers who will look at your home, and dramatically lowers your chances of getting the best price.
According to the National Association of Realtors (NAR), about 60% of the potential buyers in a given price range will look at a home that is priced right at market value.
That’s not all they report. Homes Priced:
- 15% under market value: Get an estimated 90% of the buyers to come look.
- 10% under market value: Get an estimated 75% of the buyers to look.
- 10% over market value: Get only 30% of the potential buyers to look.
- 15% over market value: Only get about 10% of the potential buyers to look.
Why Is This Important?
Wouldn’t you agree that you have the best chance of multiple offers and a higher offer if you get a bunch of buyers competing for the same home?
In this seller’s market, starting your listing price off 5-10% under market value just might be a wise financial decision. In this market there’s a pretty good chance of getting a buyer frenzy going, which typically pushes the price up anyway.
This just happened to one of my buyers this weekend. A home hit the market late last week that was priced approximately 5% under the current market value. We ran out and looked at the home the first day on the market. We submitted an offer for well above full price on the home. The seller ended up receiving 2 other offers. One of which was even better than ours. Needless to say, the listing price strategy worked for this seller – big time!
Likewise, homes that are priced high will usually be the last to show, if at all. They usually get few or low-ball offers, assuming they get any offers at all. These are usually the “seller” priced homes who choose a list price higher than their broker recommends.
So what happens to over priced listings?
First of all, the most competitively priced listings sell first. If you want to sell in a reasonable time frame, look objectively at your home, look at comparable sales, and hire a good real estate broker.
- The over priced homes sit on the market month after month.
- The listing goes stale.
- The seller gets frustrated with the listing broker because they’re obviously not doing their job.
Finally the seller reaches the breaking point of frustration and ends up either cancelling the listing, changing their plans, or reducing the listing price.
Check It Out.
The problem with the “start high so we have some negotiation room” strategy is… well it’s a bad strategy. More often than not, these sellers end up having to reduce their price much further than they would have if they had only chose the correct listing price to begin with.
In other words, it ends up costing them in the end. Got a house to sell? Give me a shout. 541-643-1131.
Always here to help:)