Wednesday, August 20, 2008
Price Home Right the First Time
Dear Sue
My real estate agent keeps suggesting that I lower the price of my home. I know that my price may be a little high but I think if a buyer really wants my home he will make an offer. I need room to negotiate.
My friends agree with me. My best friend just sold his house. He said he priced his home a little high but he ended up getting what he wanted.
I think it is just common sense and good negotiating strategy to price your property higher than your bottom line.
What do you think, Sue?
Savvy Sam
Dear Sam
There are different strategies for different markets. When markets are trending down, over pricing can be disastrous. Thinking that one should price their home above the market in order to have negotiating room is a mistake. If one prices their home too high in a declining market the price that a willing buyer is willing to pay sinks lower and lower.
Consider the following statistics furnished by the Placer County Association of Realtors.
There were 2195 home sales in Placer County in the last six months. 1011 of those sales were on the market for 30 days or less. That is over 46%! Those sales received 99% of their asking price. In other words, the sale price was reduced by 1% of the asking price.
There were 385 Properties sold within 31 to 60 days. Those properties sold at 96.5% of the asking price or 4.5% less.
241 properties sold in 61 to 90 days. Those sold within 95.9% or almost 6% less than the asking price.
190 properties sold within 91 to 120 days for 94.2% of the asking price. Or over 6% less.
368 properties on the market for 120 or more days sold at 93.72% of asking price or 6.25% less.
While there are always exceptions, I cannot stress enough the importance of pricing your property to sell when it’s first put on the market. As the statistics show, the longer time on the market equals the less money one ultimately receives.
The primary reason is that distressed property sales have dominated the market driving prices downward. Placer County real estate is currently losing about 2% per month in value. While sales may be up prices are down.
Buyers rule. Placer County presently has approximately 2300 properties available for sale. Buyers are not making quick decisions because they have several choices and they fear that they may pay too much.
Buyers that are looking are always watching for new listings. That is why all new listings have the most showings in the first three weeks. Once that “golden window” is closed sellers have to rely on new buyers coming into the market noticing a listing for the first time. Buyers love to say, “It just came on the market and I was so lucky to see it first!” Not, “Oh boy, I was so lucky to find it. It was on the market for 100 days!”
Pricing your home to sell is a matter of good Home $$s and Sense.
My real estate agent keeps suggesting that I lower the price of my home. I know that my price may be a little high but I think if a buyer really wants my home he will make an offer. I need room to negotiate.
My friends agree with me. My best friend just sold his house. He said he priced his home a little high but he ended up getting what he wanted.
I think it is just common sense and good negotiating strategy to price your property higher than your bottom line.
What do you think, Sue?
Savvy Sam
Dear Sam
There are different strategies for different markets. When markets are trending down, over pricing can be disastrous. Thinking that one should price their home above the market in order to have negotiating room is a mistake. If one prices their home too high in a declining market the price that a willing buyer is willing to pay sinks lower and lower.
Consider the following statistics furnished by the Placer County Association of Realtors.
There were 2195 home sales in Placer County in the last six months. 1011 of those sales were on the market for 30 days or less. That is over 46%! Those sales received 99% of their asking price. In other words, the sale price was reduced by 1% of the asking price.
There were 385 Properties sold within 31 to 60 days. Those properties sold at 96.5% of the asking price or 4.5% less.
241 properties sold in 61 to 90 days. Those sold within 95.9% or almost 6% less than the asking price.
190 properties sold within 91 to 120 days for 94.2% of the asking price. Or over 6% less.
368 properties on the market for 120 or more days sold at 93.72% of asking price or 6.25% less.
While there are always exceptions, I cannot stress enough the importance of pricing your property to sell when it’s first put on the market. As the statistics show, the longer time on the market equals the less money one ultimately receives.
The primary reason is that distressed property sales have dominated the market driving prices downward. Placer County real estate is currently losing about 2% per month in value. While sales may be up prices are down.
Buyers rule. Placer County presently has approximately 2300 properties available for sale. Buyers are not making quick decisions because they have several choices and they fear that they may pay too much.
Buyers that are looking are always watching for new listings. That is why all new listings have the most showings in the first three weeks. Once that “golden window” is closed sellers have to rely on new buyers coming into the market noticing a listing for the first time. Buyers love to say, “It just came on the market and I was so lucky to see it first!” Not, “Oh boy, I was so lucky to find it. It was on the market for 100 days!”
Pricing your home to sell is a matter of good Home $$s and Sense.
Labels: Auburn, auburn real estate, seehometown, seesue, sue thompson
Monday, November 19, 2007
Reasons to Be Thankful Living in Auburn
Driving down Mt. Vernon Road yesterday beneath a shimmering canopy of brilliant fall color I felt a deep sense of gratitude well up. I began to reflect on all the reasons to feel grateful for living in such a wonderful place.
First, the natural beauty that I was experiencing just driving down this beautiful country road to my home. I thought about the snow capped Sierras, the American river, the canyon, the rolling hills and valley views. We have an amazing variety of trees, from deciduous to evergreen.
The proximity and magnitude of these natural wonders provide unlimited recreational opportunities and has put Auburn on the map as the Endurance Capital of the world. Mountain biking and hiking, kayaking, skiing, boating, fishing, camping, horseback riding and don’t forget, gold panning.
Auburn loves to celebrate! We celebrate everything from vintage cars to eggplant. We still have wonderful small town parades. We even have a parade for dogs. As I write, there’s a 1951 Dodge flat bed truck, fully decorated and ready for the Festival of Lights parade parked in my barn. A look at the Auburn Chamber of Commerce calendar of events says it all.
Our community’s love and appreciation of the arts is without equal. Our own Auburn Symphony has performed at the Mondavi Center. We have art walks and studio tours. We even have our own art center and gallery, where our local talent is displayed.
We live in a community that honors and preserves its history. Our beloved courthouse is the centerpiece of our town. The latest re-roofing bid came in at approximately one million dollars. It’s not the first renovation and it certainly won’t be the last. Our community has lovingly maintained the courthouse building for over a hundred years. We are unique in that so much of our history is preserved in architecture. We don’t treat our buildings like museum pieces either, we actually live and work in them.
Our leadership values the quality of our community and our surroundings. Our leaders have had the foresight and dedication to preserve our lands and our agriculture. Public access provides countless hiking trails for all to enjoy. Our local food growers bring their harvest to the farmers market. The Newcastle Produce market and deli showcases locally grown foods and wines.
We don’t have to leave town anymore to enjoy a truly gourmet dining experience. I don’t want to mention all of our fine restaurants for fear of leaving one out.
One night last week I had a uniquely Auburn dining experience. I left my home, which is located adjacent to a fine local winery, drove a few minutes down Atwood road to a family owned and operated restaurant where I enjoyed a 5 star dining experience. The restaurant is located next door to the local bail bondsman. It just seemed so “Auburn,” unpretentious and quaint.
Auburn enjoys a vibrant business community. Its merchants and business people are creative, resourceful and energetic. We have upper town, lower town and old town. We have the Hwy 49 and Hwy 80 corridors and the Auburn airport. What more do we need?
I am most thankful for Auburn’s spirit of generosity! The citizens of our great community are generous beyond measure. Auburn takes care of its hungry and cold. We have the food closet, the coat and can tree drives and the Salvation Army. We have the thanksgiving community dinner where many families volunteer to serve. We raise money for people who are sick and without means. We donate huge dollars for medical research. We have countless fundraisers for education and other worthy causes. We have service organizations like Rotary, Soroptomists, Lions and Elks. We have Project Auburn, Hands Across Auburn and the Auburn Community Foundation. For all this, I am thankful.
I am sure there are many other reasons I forgot to mention that we should be thankful. If you would like to share, please post your comments.
Happy Thanksgiving!
Sue
First, the natural beauty that I was experiencing just driving down this beautiful country road to my home. I thought about the snow capped Sierras, the American river, the canyon, the rolling hills and valley views. We have an amazing variety of trees, from deciduous to evergreen.
The proximity and magnitude of these natural wonders provide unlimited recreational opportunities and has put Auburn on the map as the Endurance Capital of the world. Mountain biking and hiking, kayaking, skiing, boating, fishing, camping, horseback riding and don’t forget, gold panning.
Auburn loves to celebrate! We celebrate everything from vintage cars to eggplant. We still have wonderful small town parades. We even have a parade for dogs. As I write, there’s a 1951 Dodge flat bed truck, fully decorated and ready for the Festival of Lights parade parked in my barn. A look at the Auburn Chamber of Commerce calendar of events says it all.
Our community’s love and appreciation of the arts is without equal. Our own Auburn Symphony has performed at the Mondavi Center. We have art walks and studio tours. We even have our own art center and gallery, where our local talent is displayed.
We live in a community that honors and preserves its history. Our beloved courthouse is the centerpiece of our town. The latest re-roofing bid came in at approximately one million dollars. It’s not the first renovation and it certainly won’t be the last. Our community has lovingly maintained the courthouse building for over a hundred years. We are unique in that so much of our history is preserved in architecture. We don’t treat our buildings like museum pieces either, we actually live and work in them.
Our leadership values the quality of our community and our surroundings. Our leaders have had the foresight and dedication to preserve our lands and our agriculture. Public access provides countless hiking trails for all to enjoy. Our local food growers bring their harvest to the farmers market. The Newcastle Produce market and deli showcases locally grown foods and wines.
We don’t have to leave town anymore to enjoy a truly gourmet dining experience. I don’t want to mention all of our fine restaurants for fear of leaving one out.
One night last week I had a uniquely Auburn dining experience. I left my home, which is located adjacent to a fine local winery, drove a few minutes down Atwood road to a family owned and operated restaurant where I enjoyed a 5 star dining experience. The restaurant is located next door to the local bail bondsman. It just seemed so “Auburn,” unpretentious and quaint.
Auburn enjoys a vibrant business community. Its merchants and business people are creative, resourceful and energetic. We have upper town, lower town and old town. We have the Hwy 49 and Hwy 80 corridors and the Auburn airport. What more do we need?
I am most thankful for Auburn’s spirit of generosity! The citizens of our great community are generous beyond measure. Auburn takes care of its hungry and cold. We have the food closet, the coat and can tree drives and the Salvation Army. We have the thanksgiving community dinner where many families volunteer to serve. We raise money for people who are sick and without means. We donate huge dollars for medical research. We have countless fundraisers for education and other worthy causes. We have service organizations like Rotary, Soroptomists, Lions and Elks. We have Project Auburn, Hands Across Auburn and the Auburn Community Foundation. For all this, I am thankful.
I am sure there are many other reasons I forgot to mention that we should be thankful. If you would like to share, please post your comments.
Happy Thanksgiving!
Sue
Labels: Auburn, California fall Thanksgiving gratitude
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