Even though this economic rough patch started several years ago the real estate market continues to change. Today, differences in market conditions are evident in rather close proximity. The Old Forge real estate market varies greatly from the Raquette Lake, Kayuta Lake or Forestport markets. The differences between these markets come down to the simple principles of supply and demand. Those properties listed for sale in the slower markets have a two pronged problem. Not only is there an over abundance of competitive selling properties, there is also a Buyer perception problem. Possible Buyers are left wondering:
“Why hasn’t someone else bought this house, is it a poor investment? It has been listed for a while. If I wait six months, the price will be lower. This place isn’t going anywhere.”
These perception problems keep Realtors awake at night. It doesn’t matter if we show a Buyer several properties that meet every one of their requirements. It doesn’t matter if we show them the property of their dreams! With unresolved concerns and so many options on the table, Buyers are simply not motivated to purchase. How do they know that an
EVEN BETTER property won’t come on the market a month from now? It sounds pretty hopeless doesn’t it? Hang in there, the strategy is rather simple. The one thing that will sell your property is the perception that your property is a reasonable value and that it might not be available tomorrow. Perception is often reality.
Don’t overprice your property coming out of the gate. Use that “new listing momentum” to your advantage in an effort to receive competing offers.
List your property at the price you would sell it for. This is the most important piece of advice I can give you! Everyone, I mean everyone, used to believe that you had to leave a gap for negotiations. There is no reason to overprice your property; your price does not need to be negotiable. When Sellers price high assuming that every Buyer is a ‘wheeler dealer’, they are just chasing off the Buyer that isn’t.
Nothing reinforces a Buyer’s belief that they have found the right property more than seeing another possible Buyer pull up the driveway! The worst thing a Buyer can do is wait until they have to compete in a bidding war. Buyers are cautious in this economy; they have a lot of options and they aren’t willing to overpay. They are, however, still buying. Most properties that sell in this economy have multiple interested parties because
somewhere along the line the property was priced appropriately. Price your property competitively and use the stir to your advantage.
Current Comps don’t lie. Before you list your property, ask your Realtor to review several comparable recent sales with you as well as the properties that will be your competition. Whether you like what these numbers tell you or not, the recent sales are the best gauge you have of the offers you will receive. Your property is only worth what a willing and able Buyer will pay. The Buyer, their appraiser, and their bank are all going to look at this information – you can’t hide it. If the comps don’t justify the sale price the Buyer won’t be able to obtain financing and the entire exercise has been a waste of time for everyone involved. The tail doesn’t wag the dog.
If your property isn’t being shown during your peak season, your property is probably over priced.
Let go of the notion that your home or camp needs to turn a profit in order to have been a worthwhile venture. Your home or camp has served a purpose and you’ve had the opportunity to enjoy it; don’t expect to get back every dollar you’ve put in to it. Please keep in mind that your upgrades may not be appealing to a Buyer. Not everyone has the same taste. These upgrades have a value in use for you that may not result in an increase in the property’s value. In addition to upgrades, you may have endured the expense of replacing the roof or furnace. Unfortunately, maintenance and repairs rarely increase the value, they simply protect the investment. It is unlikely that you will completely recoup these costs.
Hire the Real Estate Team that will give your property the best exposure! Print advertisements are great but most buyers look for properties online these days. Hop on the internet and Google real estate for sale in your area. What websites come up? Does your agent have properties listed on these sites? Is your Agent a Realtor and a member of the local Multiple Listing Services (MLS)? This is a second home market, most Buyers are not local, the large websites like Realtor.com will give your property the biggest audience.
Last, but not least, don’t forget the reason why you want to sell in the first place! Is your property keeping you from moving on to the next phase of your life? Are you missing another opportunity because you need to unload this asset first? You only get one shot at this life (as far as I know). Are you putting your life on hold for a higher offer that you might not receive?