Price Right the First TimeColleen Loiseau, June 11, 2018 in Real Estate, TMR, Tahoe/Truckee
We are in the midst of a healthy, appreciating market in Tahoe-Truckee region. Home values have bounced back to prerecession prices and lenders have reigned in their credit approval practices. The market is more stable than 2007 and not superfluously inflated. In an appreciating market however, sellers often get carried away with estimating the value of their home.
There is an art to pricing a home correctly, and several factors to consider before arriving at a list price. A well priced home has a far greater chance of multiple offers, than an overpriced residence. The risk of listing your home above market value includes: appraisal issues, excessive days on market, stress, and decreased return on investment. Generally, homes that were priced too high will reduce price and yield 1% less than property priced correctly from the start.
Top 5 factors to consider when arriving at a list price:
- Comparable Sales & Active Listings: Review home sales in your neighborhood over the last 3-9 months of similar size and age to arrive at an estimated value. Research active listings within a 5 mile radius and compare home assets.
- Age & Condition: Well-maintained and remodeled homes are worth more to prospective buyers and should not be overlooked as an influence on price.
- Location/Accessibility: Look objectively at the placement of your home and put yourself in the buyer’s shoes. Is the driveway easy to manage? How does traffic impact accessibility?
- Square Footage/Storage: Not all homes are priced on a price/sq.ft. basis, however it does play a role. More important than square footage, is how the home lives: is there ample storage and outdoor living space. Is the home compartmentalized or does it have an open floor plan?
- Seasonality/Inventory: How much competition is there? Many sellers prefer to list their home in Truckee/Tahoe during peak tourist season with higher foot traffic, (December/January and July,) these time frames also equate to greater competition amongst sellers.