I have the opportunity to work with many wonderful people, both buyers and sellers. In today’s environment, buyers want to make absolutely certain that they are not over paying. Sellers want to make sure they aren’t under-pricing. As your realtor, I look out for your interests – whether buying or selling – it is who I am!
The current reality of the market is that sellers have had to come down in their pricing. Therefore, I recommend to sellers, do not sell unless you absolutely have to. If you are certain you want to sell, price your property ahead of the market. This means something less than your competition. For buyers, the time is now if you want to make your dream of owning a piece of Wine Country real estate a reality. If you find a great property that’s priced higher than you expected to pay, don’t hesitate making an offer. Only the seller knows whether they will accept an offer less than the list price.
With buyers expecting and getting better deals, the market hardest hit currently has been the estate type home – those over $2,000,000 – where both inventory and buyer uncertainty are highest. Price adjustments for this market segment began occurring in 2008.
Here’s an example of three homes that sold over the last six months where the sales price was 20-40% less than the list price:
84 Loma Vista Dr., Sonoma:
http://www.redfin.com/CA/Sonoma/84-Loma-Vista-Dr-95476/home/2511894 A lovely 5 bedroom home, the final sales price was $2,400,000. It sold for 44% less than its original sales price. The property had been on the market for 2+ years.
500 Aurora Lane, Sonoma:
http://www.auroralane.com/ Another beautiful country property, the final sales price was $2,400,000 – 35% less than the original sales price. This property was on the market for 13 months.
19087 Gehricke Rd, Sonoma:
http://www.neighborcity.com/property/19087-Gehricke-Rd-Sonoma-CA-95476-20813668-2314854/ Though conveniently within walking distance to the Sonoma Plaza, the final sales price was 35% less than the original sales price.
The price reductions suggest that the pool of potential buyers is less for the estate type homes, however, with the right pricing, these homes will sell. Again, knowing your competition will also help you set a fair price to motivate sales.
