Chasing the market is when a property starts out overpriced and then the listing price is reduced, sometimes more than once, in order to attract buyers. While it was suspected that sellers of overpriced properties ultimately end up with less money, it has been scientifically proven by John R. Knight*, a Professor of Finance & Real Estate at the University of the Pacific in CA. The findings from this research indicate that, on average, properties which end up dropping their listing price take longer to sell and suffer a price discount greater than similar properties. Furthermore, bigger price changes are found to have even longer marketing times and greater price discounts.
Bottom line, the proper listing price will save sellers time and money. Testing the market, ignoring market stats and listing high, going with the agent who gives you the highest listing price, attaching emotional value vs. being realistic, etc. will ultimately cost you as a seller. If you’re looking for a REALTOR® who can help you price properly, then give me a call!
Donna Forest, 603-526-4116
*Knight, John, R. (2002). Listing Price, Time on Market, and Ultimate Selling Price: Causes and Effects of Listing Price Changes. Real Estate Economics. 30:2, 213-237.
This new listing in New London, NH fits the bill! Private, yet minutes to town, this home offers 7 bedroom and 4.5 baths. Great floor plan with 4 levels of living space means plenty of room for family and friends. Beautiful gardens and flowering shrubs. Terrific, level side yard perfect for soccer and croquet. For additional photos and information, visit www.159BirchAcres.com. Offered at $640,000. Abutting 2 acre lot behind the house is also for sale - house and additional lot offered at $750,000.
Comfortable, four bedroom cape is close to schools, shopping and the hospital, and right next door to the Outing Club Park. You can go play ball, tennis or horseshoes any time you want! Large, level yard, private rear deck and two car garage with spacious overhead storage. Offered at $243,000. Visit www.NewLondonCape.com for more photos and details.
Joan Wallen, Listing Agent
It may be on a busy road, but you'd never know it from the private, fenced backyard with extensive gardens offering a quaint outside living space. The inside is warm and cozy with wood floors and walls, exposed beams and skylights. Updated kitchen and bath. Access to two beaches on Lake Sunapee, just 4 miles to Mt. Sunapee for skiing and summer fun, and Sunapee Harbor is a short distance offering shopping and restaurants. A great buy at $115,000.
So far, it’s been a bumpy 6 years, as home prices correct themselves from the peak of 2005 (values saw double digit increases from 2000 to 2005). The median price declines we are now experiencing seem more painful because of this boom. -1.9% in 2006, -1.6% in 2007, -9.9% in 2008, -9.8% in 2009, +1.4% in 2010, -6.2% in 2011 The S&P/Case-Shiller Home Price Indices show that as of March 2012, average home prices across the U.S. are back to 2002/2003 levels. Where are we going? According to a March 2012 survey of economists, real estate experts and investment and market strategists conducted by Pulsenomics, home values are predicted to slowly rise starting 2013. -0.72% in 2012, +1.39% in 2013, +2.55% in 2014, +3.18% in 2015, +3.32% in 2016 What does all this mean? For sellers, realistic pricing is of utmost importance if you wish to sell. Price for today’s market; not what it was in 2005. For buyers, there may never be a better time to buy than this year. Call me if you want to work with a REALTOR® in the know! 603-526-4116
Donna Forest, Broker Associate
You'll fall in love with this low-maintenance, year-round lakefront getaway - all at a fraction of the price of some of the other waterfront listings! Easily accessible to skiing, skating, fishing, swimming, boating, biking, and hiking. All season fun for sure! Beautiful landscaping, dock and outdoor shower. New kitchen and bath with granite counters and double-facing fireplace. Offered at $319,000. Visit www.52WestShore.com for more photos and details.
Stacey Viandier, Listing Agent
If you are even thinking about buying, then all I can say is - do it sooner rather than later. Here is why you should be buying:
- We are at historic affordability. Prices nationwide are down an average of 36% from the peak and rents are rising. It’s never been cheaper to buy a home. Mortgage rates hit an all time low of 3.87% in February.
- 2012 is projected to remain flat and then pricing is expected to appreciate 1.75% in 2013, 2.71% in 2014, 3.23% in 2015, and 3.32% in 2016.
- The Case Shiller Pricing Index for the US shows you can buy a house for the same price as in 2003. However, with the lower interest rate, the house will cost you less.
- The cover of Barron’s Magazine for March 19, 2012 – “Home Prices Ready to Rebound”
- John R. Talbott, (Bloomberg News calls him the” Prophet of Real Estate”), said in Dec. 2011, “it is now time to buy a home”.
Based on personal experience as well as hearing what other local Realtors are saying, activity levels have increased and we are actually seeing multiple offers on properties as well as quick sales for those homes that are properly priced for the market. In the words of John R. Talbott, a finance expert who predicted the housing bubble –“ run, do not walk to your neighborhood banker and finance a new home”. Whether buying or selling, if you want to work with a REALTOR® in the know, then give me a call! 603-526-4116
Donna Forest, Broker Associate
To incredible views of Ragged Mountain! You can move right into this spacious, open concept home at the top of a dead-end road. Sellers are installing a brand new, state approved, 3 bedroom septic system. Efficiently heated with propane and wood boilers - use one or the other or both. Small, level yard with lovely perennial beds. Under 2 miles to town and only a mile to the Rail Trail. Enjoy the best of Andover's recreational opportunities without ever having to get in the car! Offered at $196,000. Give Stacey Viandier a call today to schedule your showing, 603-526-4116.
Stacey Viandier, Listing Agent
New listing in Springfield, NH. Enjoy the quiet on your Farmer's porch with a cup of coffee. 3 bedroom, cape style log home sits on 5.18 acres offering an easy commute north or south on I-89. Fieldstone fireplace with wood pellet stove makes for easy heating. Kitchen has been updated with new cabinets, countertops, and large butcher block island for meals. Offered at $175,000. Call Sara Ellis to schedule your showing today! 603-526-4116
Sara Ellis, Listing Agent
Restored with loving care and meticulously maintained. Located on a quiet, country road, it's the best of today combined with the appeal of a gentler time. Beautiful setting of fields, woods and a small river. Immaculate home offers wood floors, 2 working fireplaces, large and sunny country kitchen, beamed ceilings, a covered and a screened porch plus a barn/workshop, utility shed, and summer guest cottage/studio. Minutes to Mt. Sunapee Resort, hiking & snowmobile trails. Offered at $325,000. Visit www.NHFarmhouse.com for more information and photos.
Donna Forest, Listing Broker