Sellers making late summer price reductions in Crystal Bay, Incline Village
Weekly real estate update
Statistics gathered from the Incline Village MLS on 08-27-17
Houses Condos PUDs
For Sale 125 75 32
Under $1 million 33 58 12
Median Price For Sale $1,575,000 $525,000 $1,150,000
YTD Sales 2017 101 117 31
YTD Sales 2016 105 125 30
New Listings 14
In Escrow 14
Closed Escrow 7
Range in Escrow $335,000 - $4,295,000
These statistics are based on information from the Incline Village Board of REALTORS or its Multiple Listing Service as of Aug. 27.
There are many different philosophies when it comes to marketing and selling properties at Lake Tahoe.
But when the end of August arrives one issue that all sellers of unsold properties contemplate is the asking price. Price is not always the overriding factor when it comes to getting a property sold.
There are many other issues, such as the condition, upgrades, location, floor plan, view, amenities, driveway slope, etcetera that will affect how long a property sits on the market until a willing buyer comes along.
However, if a property has not been getting showings, or if the feedback from the people who have seen the property is that the price is significantly too high, now is the time for sellers to adjust the asking price before it’s too late. Waiting much longer will result in missed showings and lost opportunities.
It is important to look at the comparable sales most directly affecting your property, and also the places you are competing with. If the asking price is significantly higher than the most direct competition and you do not have some other special feature, such as great remodeling or a fabulous view, then a price reduction could be the best strategy.
A significant number of buyers, especially from Northern California, will be returning to Lake Tahoe in September and October for second or third looks and to make their purchase decisions. If a property has been on the market during the summer of 2017, and has received very few showings and no offers, it’s essential to determine if the asking price is too high or if there are some other issues that need to be addressed.
Maybe the asking price looks reasonable compared to other similar properties, but there are cosmetic or structural issues that are scaring buyers away. The vast majority of buyers in Incline Village and Crystal Bay are not interested in doing significant amounts of updating or repairs.
Having a property that is move-in ready is much more appealing to our typical demographic. Sometimes simple cosmetic work, such as touching up paint, fixing a decaying fascia board or replacing the torn bathroom linoleum with some nice new tile, will be enough to dress up the property and make it more appealing.
You may not recover the cost of the improvements. But the updating will make your property more attractive to most buyers and could provide for an easier sale, especially if it makes your place look better than the competition.
Whether to make improvements, reduce the price, or hold the line on price and change the marketing strategy, is a decision that each seller will have to make based on the nature of their property and their own personal circumstances.
Just making a big price reduction so that you are well below the most direct competition is no guarantee that your property will get sold if there are other weaknesses that are making buyers shy away.
You can have a great view, beautiful interior and nice amenities. But if the location or floor plan is not desirable, then reducing the asking price is not necessarily the answer. Some properties are appealing to a very limited pool of buyers and it is a question of marketing the property in a way to attract that special buyer.