Tuesday, September 22, 2009

2845 S Alaksa is pending

2845 S Alaska has received an offer which has been mutually accepted by both parties. When the property first went on the market, it was the middle of summer. People would stop buy the open house and like the place, but would say, that they just started looking. The pricing was set at what a similar house sold for in 2007, $449,000 would have seemed a reasonable price in the days of cheap credit, and any old house selling for $250k. This is 2009, and of course that price was too high, but how do you determine the market price? In this market, testing interest and price points is very important. There is one philosophy that if the property is priced right at the beginning, it will sell quickly, and that a property is marked if there are constant price drops. This may be true in some market conditions, but I don’t think this is true on this property.
When the price was over S400k a few people looked at it. One agent who brought someone through, ended up buying a house in the 400k price range, but one that had already been discounted 100k.
When the price fell below $400k there was interest, but it seemed like the people in this price range could afford a bit more and wanted more.
When the price fell below $350 a lot of interest picked up, with agents and clients starting to talk about making an offer. The sub $350k price point picked up a whole set of different buyers. People were looking, and they were starting to ask the question, Should I make an offer? When agents called me, they asked, is the house still available? So five days after the price was sub$350k, an offer was mutually accepted.
If you ask the question, what would have happened if the house was put on the market originally at $350k? Would it have sold in five days? I don’t think so. I think people want time to make big decisions about buying a house. People are getting used to the idea that house can be on the market for a couple of months, and they can look at others, think about it and consider.