What if some Sequim homes are listed and sell very quickly, even in this real estate recession? Does that mean they were listed too low? This is an interesting question, because in the majority of cases a house that hasn’t sold for a long time is over priced, but is the corollary true? If some Sequim homes sell quickly, does that mean they were under priced? Of course, there are variables other than price that can cause a house to be on the market for a long time without selling. Houses that may take longer to sell than normal would include:
- A house in an unattractive location (on a very busy highway, with a junk yard next door, adjacent to a logged field with 40 acres of stumps and slash)
- An old house with a poor or inefficient floor plan (functional obsolescence)
- A house in serious disrepair
- An odd house
Even at or below fair market value (FMV), Sequim homes in these categories may simply not sell or not sell for a long time until the price just keeps getting lower and lower, and eventually that unique buyer stumbles along. But what about a house that is not hindered with any negative characteristics, but is just unique and not in the Bell curve of houses that the majority of retirees want? What if it sells quickly? Was it priced too low?
Not necessarily. Unique Sequim homes will only sell at a price that a unique buyer is ready, willing, and able to pay. Let’s suppose a Sequim home is listed January 1st. If that unique buyer comes to town January 15th and buys it for full price, a seller might be thinking, “Oh my God. I could have gotten more money!” Maybe, but just because it sold after only being listed for two weeks doesn’t mean it was listed too low. Suppose that unique buyer did not come to town January 15th? The house would not have sold. Are we then to conclude that the house is over priced? Of course not.
Suppose that unique buyer does not come to town until July 4th, and sees the home and buys it at the full listed price. Was it any more under priced than it would have been had he arrived January 15th? No. Timing is everything in real estate, and a unique buyer for a unique house may come January 15th, July 4th, or never.
If you sell your Sequim home quickly in this real estate recession, count your blessings and deposit your sale proceeds without looking back. You’re one of the lucky ones.
Last Updated on July 27, 2012 by Chuck Marunde