Incline Village real estate: Autumn is the season of price changes
Special to the Sun-Bonanza
weekly real estate update
Statistics gathered from the Incline Village MLS on 9/16/16
Houses Condos PUDs
For Sale 151 88 26
Under $1 million 40 76 11
Median Price For Sale $1,677,000 $499,250 $1,149,000
YTD Sales 2016 118 138 34
YTD Sales 2015 94 131 31
New Listings 13
In Escrow 10
Closed Escrow 9
Range in Escrow $349,000 - $2,150,000
It’s that time of year when there will soon be frost on the pumpkin and the Aspen trees turn a brilliant gold. As we reach the autumn equinox one thing buyers of Incline Village and Crystal Bay real estate can count on will be the proliferation of price reductions among motivated sellers.
There are a number of different strategies that are employed by property owners when it comes to pricing your house or condo for sale. In some instances the seller is looking for a quick close of escrow and they price their property at or below fair market value. Sometimes, this can result in multiple offers driving the final sale price above the asking price by $10,000 or more.
Another strategy employed by many sellers is to put their property on the market at the highest reasonable price which they think will bring in showings at the time the property is listed. After a period of between 30 and 60 days if no offers are received, then a price reduction will be considered down to a level that buyers will find more attractive.
Sometimes, the seller will build in three or four layers of price reduction possibilities. This is especially true for larger, more expensive properties in superb locations, especially if there is little direct competition and the property has some unique attributes.
After the summer holiday crowds depart most sellers will evaluate the current market situation and decide whether they feel their property is priced aggressively enough to get shown on a regular basis or whether an adjustment needs to be made.
In Incline Village and Crystal Bay, unless a property is relatively inexpensive, a price reduction of less than $10,000 probably won’t catch anyone’s eye. When you cross the $700,000 threshold, most sellers will find they need to reduce the price by at least $20,000 or more to attract interest.
The main reason we see so many price changes in autumn is due to the fact that sellers perceive the real estate market slowing down and want to ensure that anyone seriously looking at property in their price range is not scared away.
The weather is unpredictable and an early season snowstorm of significance could dramatically reduce the pool of buyers visiting Lake Tahoe at any time. But, not all sellers are equally motivated and therein lies the rub.
So, when you look at price changes in the fall, the most motivated sellers will be doing the biggest reductions on a dollar or percentage basis; depending on the asking price of the property.
You are not going to find what we call “Ross Dress for Less Pricing” (meaning 40%, 50% or even 60% off the original retail price), but there are still good values to be found in our current market.
Agents are very busy this time of year sending out property information to their buyer clients as price changes occur on a regular basis. Some properties were radically overpriced to begin with and the adjustments in autumn bring them in line with market conditions.
But there are the occasional gems where a seller will be satisfied with getting something less than what they originally hoped to sell their property for.
Don Kanare and Sabrina Belleci are the owners of RE/MAX North Lake. Read their blog and find weekly stats on their website at http://www.InsideIncline.com.