Skate where the puck is going, not where the puck is. -Wayne Gretzky
Here’s the tale of two homes.
With rising interest rates and increasing inventory, things are changing in the real estate market. Here is a story of 2 homes to give you an idea of where the market is going and how you can get ahead of the market.
Imagine you have 2 houses and they are the exact same house. The comparable sales from the last year show both homes are worth $1 million.
Both of the owners priced their homes based on the reports.
One home is priced at 1.1 million because that’s what everyone’s been doing for the last 60 days. They take the comparable price and add 10%.
The other seller gets the same comparable sales data and some great advice about where the market is currently heading and prices their home lower than the comps.
They make a strategic price reduction before they even hit the marketplace and they put it on the market for $910,000.
Now, keep in mind that they’re not the only two homes on the market at that price point. There are also probably another 100 homes on the market in the million-dollar price range.
Where do you think the buyers are going to go? If the houses are the exact same, they’re going to go look at the one for $910,000.
That seller is going to stand out from the crowd and get 4 or 5 offers in today’s marketplace, even with the higher interest rates.
In the end because of the increased showings and multiple offers the home gets bid up to 940,000!
Back to the other house, it is still sitting at 1.1 million and very few showings.
And then in 30 days it drops to $1,000,050 and then in another 60 days it drops to 1 million and then they go down to 850 and they go down to 800.
The house, initially priced at 1.1 million, finally sells a year later at $800,000. Which was $150,000 less than the home priced at 910,000 sold for. It also sat on the market for 300 more days!
With changing market conditions home sellers should not be greedy right now. Home sellers need to be proactive and savvy by skating where the puck is going, not where it is.
To make the right moves you need to have expert advice and the team at the McLean Real Estate Group will tell you exactly where the puck is going. Nick’s team will show you what your home is valued at today and what it’s going to be valued at in 30 days and what’s going to be valued out in the year.
So if you’re interested in finding out where the market is going for a house like yours reach out at 509-255-8070 or go to NickMcLeanRealEstate.com