Do not get caught chasing the real estate market in Sunriver, you are wasting time and money… Part 3
In part two of this three part real estate pricing series, a insight into how and why there is such a huge inventory of overpriced home listings in Sunriver was given. In this instalment of the series we take a look at “the chase,” and what the dangers of chasing the real estate market are to selling homeowners.
First of all, keep in mind that the Sunriver real estate home inventory is huge compared to what it was during the real estate boom. A balanced real estate market is considered to have 6 months of inventory. Currently Sunriver runs somewhere between one and a half and three years, based on when you run the statistical calculation for inventory (varies month to month). During the boom, Sunriver ran closer to between 3 and 6 months. These figures illustrate just how ridiculously large Sunrivers current real estate inventory is. A large real estate inventory means more than just a lot of homes for sale… To the buyer it means they can get real picky, to the seller a large inventory means that there is lots of competition. Needless to say, a home seller either needs to be the most attractive based on price, or the superiority of their property at any given market segment, in order to meet the objective of selling their home.
Another factor to consider is the declining nature of today’s real estate market. If you are overpriced and not the most attractive home in your given market segment, you will struggle in the way interest in your property. A lack of interest means no showings, no exposure, no offers, failure to meet your goal. While your home is overpriced, two things are happening. 1.) Homes that are updated, attractive, and appropriately priced are selling. 2.) The real estate market is declining further, leaving you further away from where you need to be, based on your list price. Meaning that when you do make the tough decision to get competitive, it will be at a lower point in the market than when you originally decided to sell your home. This leads me to the next topic… The price reduction game.
In my opinion price reductions are synonymous with being overpriced in the first place. As discussed in part two of this series, sometimes a disreputable REALTOR who wants a certain listing, will mislead the selling homeowner as to how much money they can get for their home. After a couple weeks or months, the REALTOR will begin hounding the homeowner for a price reduction. Remember, at this point you, the homeowner has already lost out on time and money because of the declining market. The disreputable REALTOR has placed themselves before the homeowners interests, a cardinal sin of real estate. The agent or REALTOR has a fiduciary duty to a client to place the clients interests in paramount position, no exceptions. If you currently have a home for sale, and you have reduced the price of your house significantly and on more than one occasion, than your REALTOR might be playing you. Don’t get played, force your real estate agent to work for you. REALTORS, do not have magic fairy dust in their pocket, they do have access to numbers. If what your agent is telling you is not based off of statistical analysis that they are clearly sharing with you, you might want to try another realtor. The agent client relationship should be built on trust and respect, like a partnership.
Other varibles to consider when selling your home and trying to avoid chasing the market. Your time is important to you, if you have made the decision to sell your home, sell it. There is a famous saying, “if you are going to do something, do it all the way.” Do not make the mistake of wishing and hoping to make something happen, rather make it happen. If you do make the mistake of not going all in to meet your objective, you will certainly be wasting your time. Maybe just as important as the wasting of time would be the inconvenience you are causing yourself. It is not easy to keep a home show ready all the time. Of course you need to do so in order to give your property the best chance to sell. What makes the inconvenience of keeping your home show ready even worse, is when your listing is setting on the market for months on end and you are not even seeing any showings. Yuck! It’s stressful to say the least, save yourself the headache of chasing the market and get your home sold instead. Once you meet your objective of selling your home, you can begin whatever it might be that comes next. Moving closer to friends, entering a new state of life, focusing on the future etc…!