Remember them? When all you had to do to sell your home was to put a sign in the front yard and within a matter of days multiple buyers were standing on your front porch vying for the chance to outbid each other? Well, that was yesterday. Welcome to today. I sat down this afternoon to look through the MLS for a client with relatively specific needs. As I clicked past listing after listing, I couldn't help but wonder what these folks are thinking.

The YTD average marketing time for Fairbanks Alaska real estate is less than 60 days. Only 7.7% of the homes currently for sale are under the yearly DOM average for Fairbanks. In any market, but especially a slowing market, days on the market must be considered when pricing a property. That sounds like an obvious statement I realize, but with 92% of our market exceeding the average marketing time it would seem it needs to be said.

As inventory builds, correct pricing becomes critical if you want to sell your home or if you're content to just have it listed. Looking at the homes that have been on the market from 3 to 8 times the average days on the market (150-400+) , 27 are new construction 'spec' projects with an average DOM of more than 7 months.

Having built more than a few spec homes I can tell you that time is not your friend. Builders: If you want to move these projects, it's time to get serious about, and come in line with current market value. The interest payments alone always made me very conscious of market time; extending it unnecessarily never really penciled out when I factored in carrying costs.

The existing homes in this '3-8 x average DOM category' have an average equity value of more than $97,000, according to the North Star Borough. Granted, some are going to have to write a check at closing, but others, it appears, are simply holding out for a return to 2005 pricing.

If you're home is languishing on the market, it's time for a fresh evaluation of your position in the market. Have your agent prepare a new comparative market analysis showing recent sales (no more than 3 months old). If you're an unrepresented seller, maybe it's time to consult with an agent or an appraiser to determine current fair market value.

The best and fastest way to find a buyer and preserve as much of your equity as possible is to make your home competitive with the market.

 

1 Comments on The Good 'Ol Days

DEC
31
2007
984,524 Points 106 Featured Posts Localism Sponsor Outside Blog

Yeah, I miss the good old days. I did run out and stick a sign in my yard once -- the neighbors across the street had an open house, so I took a For Sale sign out of my garage, wrote my number on it and jammed it into the ground. Attached a rider with balloons for an open house, and picked up all the traffic from the neighbor's house. It sold that afternoon. Of course, that was 1993. And interest rates were 9%. So today might be a bit better, you think?
10:55am • #1


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Fairbanks Alaska Real Estate Specialists Jesse & Kathy Clifton 907-328-9328

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