In Oregon, the housing market is slowing down creating more balance between buyers and sellers. Many homeowners are looking at 2016’s numbers and expecting their home to sell for top dollar in less than week. However, the reality is that in 2017 buyers are taking much more time to find the right home before making an offer. In the Laue Team’s most recent Wilsonville Spokesman article, Principal Broker Rick Brainard shares the risks of pricing your home too high:
Naturally every homeowner wants to get as much as possible in the sale of their home. But as Rick Brainard explains, starting out at a list price that is too high can lead to extended days on market and a final sales price below market value.
“A home typically attracts the most attention during the first few weeks on market. If buyers consistently pass because the home is overpriced, it can not only take longer to sell, but can result in a final sales price lower than the home’s true value.”
The reason for the price decline over time, Rick explains, is due to a combination of buyers’ search behavior and perception. “Consumer websites place new listings on the top and buyers have to scroll down to find homes with higher days on market.” Rick further emphasizes that, “Even when price adjustments bring a home back to top-posting, buyers assume there must be something wrong if the home hasn’t already been sold.”
Wilsonville’s stabilizing market further adds to the importance of pricing correctly. In comparison to 2016, multiple offer situations are becoming far less common and the area as a whole is seeing longer days on market. “Our local market is settling back into a healthy balance of power between buyers and sellers,” states Rick, “and pricing at value is becoming even more important.”
To accurately price your home, Rick recommends contacting a local real estate agent with area knowledge that can use current market activity to give you a true value range.