Jim Valentine on Real Estate
How in the world are you going to price your home today? There are so many factors swirling about that have an effect on buyers, sellers, lenders and everybody else involved in real estate. To top it all off we are fast approaching Christmas followed a week later by a new year.
Christmas brings the holiday spirit with the children out of school for an extended period of time, family duties and pleasures for most, family losses to bear for others. It’s a highly charged emotional environment that can put real estate activity on hold … or not.
Politically things may be stabilizing, but the reality is that the national political arena changes will bring substantial changes that can have a direct impact on real estate. Some changes are already occurring without the new administration in office, but many more are anticipated, or at least hoped for.
We will know in a short period of time how things are going to go and how the market will react to them. Until then people wonder, to act or not to act? There is solid activity in most markets. Prices are holding fine for those thinking of anticipating a drop in value.
In fact, most Northern Nevada communities are seeing record median prices on sold homes. Despite the current high median prices, chances are good that the values will increase if/when interest rates drop as that will create more buying power for borrowers.
For sure it will generate more activity in assorted price ranges as more people can afford to move up to that range. Residential buyers can buy most anytime with confidence. We say that for their purchase is made with the intent to live in the property.
The utilization and enjoyment of living in the property gives them an immeasurable emotional return on their investment regardless of the actual financial gain/loss during the course of ownership.
Sellers on the other hand are selling in this market only. They can’t look for an offset such as that above, or to hope for appreciation over time. When it comes to pricing, they can readily determine a current market value, but is that where you should price it?
The question always comes up, price it high and come down, or price it low and hope for competitive offers to increase the sales price? That becomes the art of pricing.
You can discuss this with your agent while you gain perspective on what it is you are looking to accomplish. Do you need to be marketed and closed in 60 days, or can you take six months to fully engage the market?
Many factors come in the pricing, not the least of which is your motivation. As we always say, make your list of wants and needs and your motivation will become apparent.
When you take that into consideration and the objective market factors you can blend the subjective and objective factors to a price that suits your market position in today’s market. Price it, list it and hang on for the ride.
Look at the whole picture, not just price, when you are buying or selling. It is your decision, not that of your real estate agent, lender, uncle, parents, or anybody else. Figure out what works for you, and you will make the right decision on the pricing of your purchase of sale.
Over the years we’ve interacted with hundreds of people and heard their real estate success stories as well as the calamities experienced by others. In the end, every transaction has its own character and leaves its own lasting memories.
The biggest factor of all is that of home ownership. Don’t just dream about it – make it happen. With all the variables of today’s market, pricing to buy or sell reminds us of the Donovan love song lyric, “Ah, but I may as well try and catch the wind.”
Buy the property and create a home and you will be satisfied with your investment. When you sell, move to the next one and you, too, will be satisfied.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, License No. BS-03481, RE/MAX Gold Carson Valley, 775-781-3704. dpwtigers@hotmail.com