What does “Price Reduced!” really mean?
Gig Harbor’s real estate market has unquestionably changed in the past 16 months or so. Despite the doom and gloom cries of the national media, the Puget Sound area isn’t seeing a dramatic decline in housing prices. In fact, many areas, including Gig Harbor, are still seeing homes appreciate, though at a much slower rate than 2005 and 2006. If that’s the case, how come there are so many “Price Reduced!” signs hanging around town?
Many home owners still have the visions of the 20%-25% yearly appreciations in their minds, and are pricing their homes at a price that reflects that huge percentage. In reality, appreciation has dropped below 5%, so the home’s price ends up being significantly higher than what the market is currently supporting. Thus “Price Reduced!” Asking prices of homes may in fact be coming down, but selling prices are not. With the increased inventory of homes that we have on the market, it is very important that when it’s time to sell that your house is priced relative to other homes that have SOLD, not homes currently active.
Inman News published a very good article this morning about price reductions and what they mean. If you’re looking to buy a home in the Gig Harbor area, don’t be afraid to look now and make an offer when you find the right home. Waiting for that next price reduction may mean that you get to watch somebody else move into the home that you wanted. If you feel a home is priced too high based on current inventory, make an offer at a price that you’re willing to pay. Don’t assume that just because a home has been on the market for a while, or because you know the market is favorable to buyers right now, that you can come in with a “low ball” offer, however. Many sellers are aware that it will take longer to sell their homes now than in the past, and they’ve prepared for that. They know what their home is worth, and they’re willing to wait for that price.
My biased opinion is that it’s always best to let a Realtor do the research for you (I also believe you should check their research against your own). Even before I became a Realtor, I used one to buy and sell my houses. It’s too much work, with too many variables, and too many liabilities to try and go it alone.
I’m always happy to provide you with a complimentary list of homes for sale in Gig Harbor and the surrounding areas, and I’m always happy to provide you with a complimentary price evaluation of your home, including tips on making it shine when you’re ready to sell. Just call or visit my home search website.
