While we’re currently experiencing a strong seller’s market, this does not mean that it’s a smart strategy to overprice your home.
What is your house is really worth? The short answer’s easy: A house is worth whatever someone will pay for it. The long answer depends on the market and whether you’re asking a lender, an agent, or a county tax assessor. (Source: NerdWallet)
Overpricing your home seems attractive in a hot seller’s market such as this, but actually, pricing at current market value (or slightly below) might be a better strategy to drive interest level and potentially experience a multiple offer situation. With any property’s price, while a buyer may be willing to pay top dollar, do not overlook the appraisal process as many home sale transactions either go back to the negotiation table or fall apart if a property does not appraise for the amount agreed upon by the seller and buyer.
As in any market, it’s important to price your home correctly: Buyers think of value, but they’re more concerned with price. And your home’s price is one of its most attractive — or unattractive — features. The right price can attract buyers quickly. The wrong price may mean the house sits on the market, which can create the vibe among buyers that there’s something wrong with it. (Source: HouseLogic)
According to the recently released U.S. Economic Outlook by the National Association of Realtors (NAR), existing home prices nationwide are forecasted to increase 4.7% in 2020 and 4.1% in 2021. This means experts anticipate home values will continue climbing into next year.
Today, low inventory is largely keeping prices from depreciating:
“Looking at the sheer number of buyers, low mortgage rates, and limited sellers, the strength of home prices–which are now growing at the highest pace since January 2018–makes sense.” – Danielle Hale, Chief Economist at realtor.com
When it comes to pricing your home, the goal is to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized and more buyers want to take a look. (Source: Keeping Current Matters)
In Central Oregon, the median home prices are following national trends and breaking records: In September, the median home price in Bend jumped to a record $547,000 (with an average of 5 days on market). Redmond also increased with a median home price in September of $363,00 (with an average of 6 days on market). Additionally, Sisters home prices increased to $456,000, Sunriver to $550,000, and La Pine is also experiencing record-breaking numbers with a September median home price of $327,000.
Q3 stats at a glance:
The nation is bracing itself for the results of the 2020 election and the outcome will certainly have a major impact on many sectors of the economy, but as Matthew Speakman, an economist at Zillow, explains:
“While the path of the overall economy is likely to be most directly dictated by coronavirus-related and political developments in the coming months, recent trends suggest that the housing market – which has basically withstood every pandemic-related challenge to this point – will continue its strong momentum in the months to come.”
With a current lack of available inventory, low mortgage rates driving a large buyer pool, and the desirability of the Central Oregon lifestyle, now is a great time to sell your home.
(Read more: Q3 Central Oregon Real Estate Market Update)
Sell Your Central Oregon Home With FRED
If you’re thinking of selling, work with a trusted real estate professional to strategically price and market your home to connect with the right buyer and determine your best move forward.
- Three Reasons To Sell Your Central Oregon Home This Fall
- What To Do If You Want To Sell Your Central Oregon Home
- VIDEO: Advice For Central Oregon Home Buyers & Sellers Right Now
Learn more about how we sell homes here, or simply fill out your info below and a FRED Listing Specialist will be in touch shortly: