Pricing property in Boise real estate market of today.
I recently was approach by an agent from Salt Lake who had a potential buyer down there, if only she could get her home sold here in Boise. He wanted me to go and look at it and let them know what I thought the problem was and what would it take to get it sold. The house had been listed for a year and the listing had expired about a month ago. After procuring a key and viewing it was obvious that the house was over priced by more than a hundred thousand dollars.
The home had functional problems, needs kitchen updating, had a 20 year old wood roof and no shower in the master. Needless to say it needs to be priced less expensively than a slightly nicer home across the street. Below is what I emailed to her to try and explain what it takes to get it sold in the boise market of today. Yes great marketing and superior negotiating can make a small difference but the house has to be the best deal or dream on.
Your options are to lower the price to the point that it will sell, Improve the product to the point it will be the best deal. Or you could rent it out and wait for the market to come back up.
I can tell you this, the buyers will need to perceive your home as the best value in order to generate interest and/or offers. Price overcomes all objections. If you are the 4th, 5th or 6th best deal in nw Boise, by the time 3 sell and you move into the top three and have a shot at an offer, 3 more will list and you are in 6th place and out of the running. You need to be the most competitively priced or you just do not have a chance. I do not know for sure how low you need to go but surely less than the one across the street that is bigger and updated. Or when the buyer that wants to be on the golf course is going to come along, because frankly that is the person who will be willing to pay top dollar for it.
What I do know for sure is that a buyer will go and buy the one down the street if they perceive it to be a better value to them. It does not matter what you paid, what you want, or what you think it is worth. The only opinion that matters is the buyer's who is standing at your front door. Your house will need to stand on its own two feet against the competition. There are so few buyers that they can be ultra picky. They are not going to pick an overpriced home and offer $20,000 less as it is unrealistic that more than 1 in 100 sellers would consider it.
If you are intrested in finding out what your home is worth, visit my " Boise homes value " page. I will get back to you right away. Or better yet give me a buzz at 284-9905.
Labels: Sold not listed. Pricing Boise real estate in a down market.
posted by Mike Carr at
3:47 PM
