Common Myths About Pricing
John Iwamura is well aware that pricing your home can be tricky. He has seen many Sellers along with their Realtors price their home too high initially, and then the home sits on the market. In a market where prices are still continuing to drop this is very costly for the owner as they may very well have to reduce their list price to below what the home may have sold at had it been priced correctly at the beginning. However, it can be very difficult to know what price is too high, and what is too low.
John Iwamura a Real Estate Broker with Coldwell Banker
Gesik, has a proven, long-term track record of successful real estate sales in
the Central Oregon Coast including Lincoln City and Lincoln County. John Iwamura
believes Clients should be educated about pricing and have provided this
information so Buyers and Sellers can price their property to the best possible
advantage in the current market. When choosing a Real Estate Broker in Lincoln
City, keep in mind the following information and answers to frequently asked
questions about pricing a home, provided by John Iwamura:
John knows
there are many misconceptions about pricing that affect the Sellers. This is why
pricing requires seasoned and experienced experts.
Many sellers believe
that because they put so much into their home, it is now worth more than others
on the market. In addition, they also believe their home has a better view or
more unique qualities than other homes. While this may be true, John Iwamura
wants you to know that pricing too high initially will cost you in the long run.
Your home is most marketable when it is first put onto the market; however homes
that are priced too high will be shunned by Buyers who do not want to deal with
an unrealistic Buyer, and Agents are unlikely to show an over-priced home.
Buyers these days are savvy and are frequently more knowledgeable about home
values than the Sellers! John has seen this happen many times to over-priced
listings in the Central Oregon Coast Market. John wants you to know that after
your home has been on the market for some time, even after you lower the price,
it will be hard to generate enthusiasm over the sale of your home. Once there is
finally a Buyer interested after many price reductions, the price is often
discounted even further because of the time it sat on the market.
John Iwamura believes it is very important to be as objective as possible
when selling your home. Your aim is to price your home so it will sell for the
most money in the least amount of time. John feels this is simply good business.
Although selling quickly makes many people uncomfortable, it is usually homes
that sell quickly that sell for the most amount of money.
Typically, a Seller
should price within 2.5 to 5 percent of what the ultimate selling price would
be. Within this guideline, a home should be priced in accordance with how much
price discounting is currently occurring in the area. When there is little
discounting, this means that homes are selling close to there listed prices. To
determine the probable selling price, you can contact John at Coldwell Banker
Gesik and he can complete a comparative market analysis (also known as a CMA).
This will provide you with information on properties similar to your own that
have sold recently. Often in higher price ranges, the deviation between the list
price and the sale price is higher, say ten to fifteen percent.
Although it is important to pay attention to the current market, always remember pricing strategies change with the market. People often make mistakes when the market is on the rise, and yesterday’s comparables are out of date. It can be risky to anticipate appreciation, and instead of under-pricing, you are now over-pricing. However, to protect yourself from this, find a realistic price and expose the listing to the market before you listen to any offers with the help of an expert Real Estate Broker like John Iwamura. Usually if your price is too low, Buyers may compete in a multiple bid and push the price up.
A Seller must have a different approach in a soft market where prices are on the fall. In this case, it is best to undercut your competition. Again, remember that yesterday’s comparables will be out of date, and often too high for the current market. You do not want to end up continually lowering your price trying to catch up with the declining market values. This is called chasing the market down.
John Iwamura understands that pricing your home can be a tricky issue, so if
you have any questions or would like more information, feel free to contact him.
John Iwamura and Coldwell Banker Gesik - the right choice for the buying or
selling of a home in Lincoln City Oregon along with the Central Oregon
Coast.
Have any questions or like to learn more?
John realizes that
you are probably in the information gathering stage of your process, and he
wants to provide assistance to you in any of your Lincoln City and Central
Oregon Coast Real Estate needs. If you would like to talk to John in person,
feel free to call on his direct line at (541) 921-7878
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