While there are many approaches that can be taken to price your home, these three methods seem to be what have been the norm in our Portland metro and Lake Oswego real estate markets lately. However, there are several different pricing strategies that should be employed during different types of real estate markets depending upon who the market favors. What pricing strategy is used during a “hot” sellers’ market may not fare well, or be the best, during a normal or buyers’ market.copyright bettyjung.com

Pricing Your Home Above The Market – An “Anything Goes” Price

An anything goes price can be used successfully during a hot sellers’ real estate market, when there is a low inventory of houses for sale. However, a recent news article stated that “The anything-goes list-price strategy is no longer working. Buyers want to buy, but we’re seeing fewer of them, and they are much more careful. Many properties are now not selling and/or coming down in price.”

The “anything goes” price, as we say, will “test” the market.  If you want to see what a buyer feels the value of your home is, and there are no or few houses for sale, an anything goes price will get you, most likely, the highest and best price.  However, as the market shifts, your home could wind up sitting on the market for sale instead with no offers coming in. Many times it is easier to look back and see when a shift had occurred rather than seeing a shift starting to happen. And, in fact with this type of pricing, your home might not sell at all. The anything goes price is a huge risk that you may not want to take if you really want to get your home sold quickly or within an average number of days on the market.

What we normally see with anything goes pricing, is a price reduction, in fact probably several during the course of it being on the market. While your home is waiting for that perfect buyer, it becomes stale and may in fact, sell for far less than what your home would have sold for had it been priced correctly to begin with.  With this method of pricing, your home will get lost in the maze of price reductions over time.

Pricing Your Home Below Market Value

Another strategy that many listing agents have used in this busy and hot real estate time is pricing the home far below its value.  A lower than value asking price brings in multiple offers and can sell far above the home’s actual worth. There is always the appraisal to worry about as it may not appraise at the sold price. This pricing also frustrates buyers as they are usually outbid. Many times, when multiple offers are received on a home, it is usually a cash offer and it can outbid a buyer looking to obtain financing.

During a buyers’ market instead, most homes that are priced below market are typically foreclosures or homes that need a lot of work and will not qualify for financing.

Pricing Your Home At Market Value

Most real estate agents, myself included, spend a lot of time finding comparables to your home in order to price your house where it will sell. Our job is to get sellers the highest and best price in the shortest period of time. A buyer will be looking at other homes in your neighborhood, area, school district, etc. and after viewing those homes will be comparing your home with those and will know if your home is well priced or not.

This standard practice has always been the norm.  However, real estate markets change, and frankly in all the years I have been selling, each year is different and no real estate market has ever been the same. We are now facing a shift in our Portland metro and Lake Oswego real estate markets.  It is important during this time to make sure your price is where your home will sell.

An Agent Who Knows Your Neighborhood/Area

There is something that I have noticed the longer I have been selling real estate.  It is extremely important you hire an agent who knows your neighborhood, its peculiarities, its special features, etc.  I have seen many agents list homes in areas they know nothing about and the houses have had longer market times and in some cases the houses did not sell.

Thinking of Selling Your Lake Oswego Home?

Prices are still increasing in Lake Oswego. Interest rates are also increasing but are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

SEARCH FOR REAL ESTATE

There are links above to search for real estate.  I have a new website where you can search or you can use my mobile phone app as well. My website and mobile app provide you with access to all listings available on the RMLS™ system regardless of who the listing agent or brokerage may be. Listings are updated frequently throughout the day giving you the information you need, when you need it.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1978 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2018. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

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