I cannot stress enough the importance of accurately pricing property for current market conditions. Market conditions change in as little as 60 days and can be very different from when you consider selling to when you’re ready to call your broker. San Juan County’s transition from December 2020 into 2021 is an example of how quickly markets can change. Though we continue to experience record-low inventory throughout the San Juan Islands our median sold price has grown to $815,000 from $618,750 seen in December 2020. Additionally, our Days on Market (DOM) changed, from 12 in December of last year to our current 44. These changes with your individual real estate goals can impact your listing price. Know, our market is still exceedingly hot, with many accurately priced properties selling quicker than less appealing and overpriced properties.
Accurately pricing property is part art and part science. Using the same approach as your appraiser to evaluate your home, we compare similar properties, make adjustments for differences, track market movements, and assess present inventory stock to arrive at a range of value, to arrive at an educated broker price opinion. This is where a savvy broker with a deep knowledge of your hyper-local, regional, and national markets can be the difference between For Sale and Sold.
Some sellers may feel pricing high allows for negotiation room, offers room for price reductions, and/or buyers will present offers despite the listing price. This is flawed thinking; not only will pricing inaccurately reach buyers outside your target, but data shows pricing your home too high for market conditions nets sellers less than if they’re priced accurately for market value, defined as the most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. The financial loss of a stagnant listing often exceeds the extra mortgage payments paid as well as the unrealized hassle factor of keeping your home spotless for showings and affects the value a buyer ultimately chooses to pay.
To illustrate the impact of accurate pricing in the real market, the below chart is data pulled for the homes sold in Area 901 on Orcas Island which includes the communities of Crane Island, Deer Harbor, Doe Bay, Eagle Lake, Eastsound, Obstruction, Obstruction Island, Olga, Orcas, Rosario, and Westsound. The chart outlines data from the 154 single-family homes sold over the last 365 days comparing the number of days each took to sell, the median sale price, and the percentage of sale price against the original list price.
As seen, accurate pricing directly influences the amount of time your property spends on the market and impact your Return on Investment (ROI). Property values are not set in stone; they change in value depending on many key factors. If you’d like to know your property’s value within our current trends, please contact us. We offer free, no-obligation assessments and would love to talk about your real estate goals.
– The Wally Gudgell Group