Princing for a Buyer's Market - The Good, the Bad and the Ugly
It is a buyer’s market – haven’t read anything lately to contradict that! What is it? The law of supply and demand at work. Excess inventory puts downward pressure on prices. Buyers are looking for exceptional values in the current market. So how do we convince sellers that we are pricing their property at the optimum price to sell today? Sellers want the highest price; we want a price that we can sell. The right price is the perfect balance of those two perspectives. Principle #1. Know the property. The good, the bad and the ugly. We and the seller are going to have to accentuate the good, and the seller is going to have to fix the bad and the ugly. Anything less won’t stand out in the market. Principle #2. Know the market. What comps have sold and not sold? Why? At what price? How long were the solds on the market and at what price? What are actives doing? How long on the market and why, at what price? Principle #3. Establish a price range for the seller, with a specific price point recommendation in the range, backed up by the real market data that you now know. Principle #4. Price to attract buyers. Properties need to stand out to sell. That includes price, appearance, terms – whatever you and the seller can agree on to make the property stand out in the market – price being #1 in today’s market. Principle #5. Describe to attract buyers. Generic descriptions aren’t good enough to differentiate today. Get really good at writing property headlines and descriptions that stand out, or get some help doing it. Principle #6. Establish reduction discussions. Have the discussion at the listing appointment. If the property isn’t getting a lot of attention in the first few weeks, have the follow-up discussion on reducing the price. Even better, have a schedule laid out and agreed upon in writing ahead of time based on market response. Principle #7. Market everywhere! Anyone not marketing extensively on the web is missing the majority of the market. It’s not expensive, and lots of it is absolutely free! Read AR to find out how! Principle #8. Follow up with your sellers! Have a weekly conversation with your sellers on what’s happened in the last week: phone calls, viewing stats on your web listings, emails. End the conversation with a recommendation on how to respond: if market response is good, let’s leave the price where it is. Not enough happening, let’s drop the price or do something else to energize the market response. That’s the short version. It seems to be working for us. What can we do better? We would love to hear what works for you – twists, new ideas! What not to do in pricing might be a good discussion for another blog. Thank you AR! We’ve learned a lot in a couple of months on AR, and have been gratified to be able to share some of our hard-learned lessons to help others, as well! Blessings! What's So Great (and Not So Great) About Lane County
Lane County is the second largest county in western Oregon by area, stretching from the Oregon Coast to the Cascade Mountains. The Eugene/Springfield metro area is the second largest metropolitan area in the state (after the Portland metro area). State population is near 3.7 million, with just under 10% of that population in Lane County, concentrated in the Eugene/Springfield area. Eugene, the county seat and largest city, is centrally located, roughly an hour from the Pacific Coast or the Cascade Mountains. Green on Green The overwhelming impression one first gets of Lane County is that it is very, very green. More than 75% of county land is forested. About 50% of the forestland is under USFS management. The rest is metropolitan or, within the Willamette Valley, farmland. It is also one of the most green-conscious (translate eco-conscious) areas in the US. The Coast The Oregon coast is nothing short of spectacular. Massive sand dunes, miles of pristine beaches, the majestic Pacific Ocean, numerous lakes, picturesque towns, commercial and sport-fishing fleets, and unforgettable coastal vistas - an hour from Eugene. Whales migrate annually up and down the Oregon coast, and are easily spotted during peak migrations. The Mountains The white-capped Cascade Mountains lie just over an hour to the east of Eugene, with downhill and cross-country skiing, hundreds of miles of wilderness trails, many lakes, two major rivers, and miles upon miles of wilderness. Recreation and scenery reign in east Lane County: hiking, backcountry camping, mountain biking, rafting, kayaking, and fishing. Incomparable views of mountains, forests, lakes, rivers, waterfalls and lava fields abound. Wildlife also abounds, with deer, elk, coyote, bear and cougar populations (bears and cougars rarely seen). The Rivers The Willamette river is the centerpiece of the Willamette Valley, flowing through the city of Eugene. Several large waterfront parks adorn the city. The McKenzie River flows from Clear Lake in the Cascade Mountain into the Willamette river at Eugene. The McKenzie is a world-famous fly-fishing destination, home of the now world-famous McKenzie Drift Boat. The McKenzie's water is as pure as can be found anywhere on the planet. Native redside trout also abound, for catch-and-release fishing only. The Weather Now we come to some of the "not so great" about Lane County. Winters are wet and dreary - not suited for veteran desert-dwellers. Rain and snow in the mountains, rain in the valley, and rain and wind on the coast give meaning to the University of Oregon moniker "ducks". The rain extends from November into May or June, literally half of the year. It's not raining every day, of course, but there is a LOT of rain in winter and spring. On the other hand, that's what keeps the place verdant green all year. Mid-summer through fall are paradise in Lane County (July through October). Warm, sunny days from the mountains to the coast are a welcome relief from the wet winter and spring. Visitor Info For a more complete pictorial and informational view of Lane, please visit the Convention and Visitors Association of Lane County website. For Real Estate and McKenzie Valley information, please visit us online!
2.7 Mountain View Acres, McKenzie Bridge, Oregon $299,000
Rethinking Your CMA's?
Fewer properties are selling - almost everywhere. Buyers are wary and picky - and should be! Focusing on sold properties alone gives you and your clients a limited, and potentially inaccurate, view of the current market. It is just as important for your clients to see what has NOT sold as it is to see what HAS sold. We now analyze and present, not just recently sold listings, but also expired and cancelled listings. It paints a much clearer picture of the market. Establishing a realistic market price for your sellers is critical to your success, and theirs, in selling. Sellers, especially, need to understand what has not sold, and the probable reasons why. In recommending an offer price to buyers, they too will appreciate knowing what has not sold, not just what has sold, in a given price range. Maybe you are way ahead of us and are already doing this - I hope so! If not, consider expanding your CMA thinking! Blessings to all! John & Susan Gray, McKenzie River Valley Realtors
Thurston Market Update Feb 2007 - Feb 2008Thurston, Oregon is east of Springfield heading up the McKenzie River Valley, a little higher end market area than Springfield. Here are some of the essentials for the period Feb 2007 through Feb 2008, according to RMLS residential data. Of 572 total units listed, 282 sold, at an average sale price of $234.4K against an average list price of $258.3K. 290 unis remained on the market. Average days on market generally increased across the one year period, from 60 in Feb 2007, to 106 in Feb 2008, averaging 75 days for the year. Thurston is a growing market, as the new PeaceHealth hospital starts hiring, and the Springfield area becomes a home for new call center facilities. It is also the Willamette Valley gateway to the beautiful McKenzie Valley. Despite all the reports of doom and gloom in the US real estate market, this area, along with the entire Eugene/Springfield area, continues to be a very active market, with homes priced right and marketed effectively still selling! John & Susan Gray, McKenzie Valley Realtors It's Time for the March Browns!
The first buds on the shrubs and trees, and early bulbs start to emerge. Post-winter yard cleanup begins. The spring greening of the valley has begun. This is when the real estate market in the upper valley wakes up, too. Despite the rumored and feared appearance of a coming recession on the heels of last year's real estate downturn, there are many positive signs. Whatever happens in November, positive economic change is a pretty sure bet, and just about everyone we talk to believes it is coming. Mortgage rates are down, and at least some help is on the way for the mortgage industry. The market adjustments of the last year have made some good buys available for astute buyers, and the expectations of sellers have adjusted, too, based on the realities of the market. It tells us that a good year is ahead for realtors who know their markets and really pay attention to their clients' needs and dreams. Blessings to all this new year - we welcome the March Browns! John & Susan Gray McKenzie Valley Market Update Feb 2007 - Feb 2008For those interested in buying or selling a home or land in the McKenzie River Valley, here's what has happened from February 2007 to February 2008. Some clear messages emerge. According to RMLS data, $26M of residential inventory sold in the valley in that one year period against a listed inventory of $102M, at an average sales price of $422K, against an average list price of $496K. Average days on market was at 36 in February of 2007, 100+ from March through July, and is back down to 68 in February 2008, for an average of 91 days. Of 207 residences listed, 63 sold, and 144 remain on the market. A total of 9 parcels of land sold against 52 listed at an average selling price of $205K, against an average listing price of $443K. Average days on market for the year was 113, now standing at 89. 43 parcels remain on the market. The messages: It is clearly a buyers' market, and significant opportunities exist for buyers who are not afraid to jump in. For sellers: aggressive pricing is absolutely critical to move properties, whether residential or land. That's not what sellers want to hear, but if you really want to serve sellers with integrity, and move properties, that's what they need to know. Agents who "buy" listings will see them stagnate on the market. The good news - the market is improving! In October, November and December 2007, total units sold exceeded July, August, September total units for both residences and land. Winter in the McKenzie Valley typically just shuts down real estate - especially this winter with record snow levels. In January 2008 that was true, but not October through December. Average days on the market for listings is currently coming down. The upper McKenzie River valley is being rapidly transformed into a higher end recreational area, with new riverfront condos, the new Log Cabin Inn construction in progress, lodge and business facelifts, and new businesses emerging. It's a great time to invest in the future! For more McKenzie Valley information, please check out our mckenziehomesandland website.
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John & Susan Gray - McKenzie River Valley Real Estate McKenzie Bridge, OR More about me… Allstate Real Estate Office Phone: (541) 255-5486 Cell Phone: (541) 255-5486 Email Me ;) Links;) Tags (Tag Cloud);) Archives
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I’ve been reading lots of pricing discussions on AR lately, commenting on a few. So I decided it was time to lay our pricing strategy out there for everyone to read, and see if we can get some good feedback and ideas for AR agents to use in their business. (If you’re an experienced agent, you’re probably already doing this…)
Demographics & Geography 
Private Wooded Acreage
We realtors all do CMA's for our buyers and sellers (I hope all agents are doing due diligence CMA's!). The typical market analysis focused exclusively on recently sold properties to establish comparative market value. It that's still your perspective, it may be time to rethink your CMA's.
By the end of February or first of March on the McKenzie, the March Brown mayfly makes its first appearance on the river. This is the first major dry fly hatch on the river, and wakes up all of those beautiful native rainbow and cutthroat trout from their winter lethargy, not to mention the died-in-the-wool fly fishermen. Sunnier, warmer days, drier highways, and the promise of some action on the river brings welcome relief from the winter doldrums.
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