Today’s market is a seller’s market. That is, the supply of homes for sale does not meet the demand of buyers in Lane County. In fact, inventory of homes for sale was down 45 percent this April from the number of homes for sale in Eugene and Springfield at the end of April 2015.
Challenges in the Lane County Real Estate Market
This sounds great for sellers. But, with this opportunity comes challenges. Sellers have a legitimate fear that they may leave money on the table in this climate because the rate of price appreciation is difficult to pinpoint. Overpricing can result from the need to undercut the optimum sales price later because the home missed the “auction” atmosphere by coming out of the gate too high. For this reason, sellers must competitively price to maximize the return on investment at the time of sale.
Homes in Lane County sell within 99 percent of their list price in today’s seller’s market. This means, buyers will only negotiate a little on price. This makes it important to not overprice, as sellers might miss out on a potential buyer. Sellers need to know ahead of time what the likely negotiating margin will be, based upon the trends of recent similar home sales and how it will affect the asking price. While sellers can always decrease the price, there is a cost for coming onto the market too high.
How Local Realtor Databases Factor In
Upon release of a competitively priced listing on Realtor databases and popular real estate websites, buyers invested in their search process immediately will take a good look at the opportunity. These are the most qualified, motivated and educated buyers, capable of writing an offer the same day that the home hits the market. If the home is not competitively positioned among the other opportunities available, these buyers will eliminate the home as a viable option without ever viewing it.
There will not be a second chance to make a first impression on these strong buyer candidates. When the price is reduced, the momentum will shift and the seller’s agent will have to work very hard to bring attention back to the home.
Navigating Competitive Real Estate Pricing
Sellers must also prepare their home to outshine the competition—similarly priced homes for sale. The post-recessionary buyer approaches the home with a critical eye and wants to know if the investment will retain its value. The seller can give buyers the confidence that they need by presenting a contemporary, turn-key home. Remove personal items and arrange furniture to illustrate the optimum use of each room. Repair and update elements that may communicate that the home is dated or contains deferred maintenance. In today’s market, sellers must position themselves in price and condition to maximize their return on investment.