If your house isn’t generating the showing activity you expected and no viable offers have been made, you might think it’s time to reduce the list price. This notion often doesn’t sit well with home sellers.
While the real estate market frequently echoes the sentiment, “If it’s not selling, the price isn’t compelling,” it’s important to understand that terms are just as crucial as price.
Many potential homebuyers are understandably nervous about interest rates and home prices. The media often proclaims, “Interest rates are high!” However, it’s helpful to put things in perspective: Rates have merely returned to their pre-pandemic levels. The real challenge lies in the significant increase in home prices, which have outpaced the economy, making affordability a real concern.
Here’s the silver lining: Working with an experienced real estate broker can save you time, money and stress. A seasoned real estate professional doesn’t just know the market; they understand how real estate transactions work in depth.
For instance, as a local real estate broker with over 30 years of experience in the Southern California mountain resorts area, I possess detailed knowledge of the average and median data for each locale, including days on market. Understanding these numbers is crucial for navigating today’s local real estate landscape.
The latest data from the California Regional Multiple Listing Service (CRMLS) shows there are 630 residential properties for sale from Crestline to Green Valley Lake. Currently, 47 houses are in escrow and 57 properties have successfully closed escrow in the past 30 days. The market absorption rate, which indicates how long it would take to sell all current inventory, stands at 11 months. For those needing to sell their house, this is a daunting span, especially if aiming for market value in a consistently shrinking buyer pool.
A typical three-bedroom, two-bath home on the mountain costs around $450,000. With a 10 percent down payment, the monthly mortgage would be about $3,208. But what if I told you that same house could cost $2,674 per month with the same down payment and loan type, achieved by adjusting the terms without reducing the list price?
Consider rental rates for perspective. In Redlands, a three-bedroom, two-bath apartment rents for around $2,500 per month. If a homebuyer aims to keep their monthly payment around $2,500, they would be looking at homes priced around $370,000. But what if I could show you how to attract these buyers to your $450,000 house with a nearly $2,500 monthly payment?
This isn’t magic, but the power of working with a professional real estate broker. Understanding how to navigate a high-interest and high-price market is crucial. Positioning a home sale correctly, not just with pricing but also with terms, can significantly reduce the time on the market, which translates to more money in the home seller’s pocket.
If you’d like to learn more about the current local market conditions, reach out to Theresa Grant, Real Estate Broker (DRE #01202881), at Theresa@HomesInLakeArrowhead.com. You can also follow on social – Instagram: @theresagrantrealtor|YouTube: @theresagrantrealtor. Theresa is a Broker Associate with Coldwell Banker Sky Ridge Realty.
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