Pricing Property in the Current Market

Has the property bubble burst in Orange County?

No,  not really,  but I can tell you that buyers are bringing the price of the market in general,  down.  They are doing this by low-balling sellers.  Desperate sellers (distressed sales) that are accepting these low-ball offers are playing right into the hands of those who are trying to bring property market prices down!

So,  how does a seller price a property ‘right’ for the market?

First,  and I cannot stress this enough…  get a qualified and experienced Realtor to do this for you. 

Your property must be measured up against – not the property that has just been listed in the neighbood 2 miles away, but against actual properties that have been sold within the last month or two.  These are called comparables and comparables are properties that are with a certain distance from yours.

Remember, that two streets north, a property may be adjacent to the freeway,  and two streets south,  the property may be within walking distance of the ocean.  Both these factors will affect the pricing of your property.

So you have a pool?  This is great,  but while a pool may be an asset to you,  because you invested in it,  it only has value to those who WANT a pool.  To the person who hates swimming or has a 6 month old child,  a pool would be a liability.

There is nothing that increases the marketability of a home quite like curb appeal and the first sight after walking in through the fornt door!  Your buyer has 10 seconds to draw a first impression, so this is where your effort must go into creating the ‘Wow’ factor.

Lets say that you have an identical property to the one that sold last week on your street.  Everything is the same…  number of bedrooms and bathrooms,  square footage, lot size etc.  Why should your property fetch a better list price than the other one?

Perhaps you have scraped ceilings and granite counters…  perhaps you have copper plumbing and the other one doesn’t… your property had roof replacement last year where the other one was replaced 15 years ago.

All this affects the list price of your home.

If you want a quick sale in the current market,  you must take the comparable price and DROP it,  otherwise you just won’t be in the game!

The other thing to consider,  is the buyers commision percentage. When a buyers agent is faced with 40 or 50 homes to show a client,  and has to whittle that number down to 5 or 6,  they are more likely to look at what commission is offered.  If you offer 3 – 3.5% commission and the property down the street is offering 4 – 5% commission,  whose house do you think will be shown?

Sad, but true!

In this market,  sellers need to do everything that they can to expose their properties to the more serious buyers and those serious buyers are brought to you by buyers agents!  If you want agents to show your property to serious buyers,  make it worth their while.

Just as you would like a fair price for your home,  so a buyers agent would like fair remuneration for their time and much of the work that Realtors do, is without cost.

If you would like a free market analysis of your property,  contact us at (714) 264-3458 for a free, no obligation report.

Happy house-hunting!

Althea
Rose-Marie & Althea
The OC Dream Home Team
http://www.ocdreamhometeam.com

View 38,000 properties at http://www.ocdreamhometeam.com  Interested in foreclosure properties? …

Take one of our Saturday Foreclosure tours!

Want to buy property but don’t know how?…

Attend our next First-Time Home-Buyers seminar and learn the tricks of the trade!

Call (714) 264-3458 NOW!….  for more information.

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