Looking at Sequim homes for sale? Here is a very practical tip that could save you $10,000 or more–literally. I have seen this kind of price discrepancy so many times, I thought it was time I write about it so my buyer clients could be on the lookout for this kind of price discrepancy in Sequim homes for sale.
Sequim Homes for Sale and the Dilemma
The truth is . . . many sellers are out of touch with the true value of their homes. Homes that are on busy superhighways are worth less than the equivalent homes in a beautiful quiet neighborhood. And a 40 year old home built with lesser materials and on a poor lot is worth less than a new home built with good quality materials and good workmanship. But you would never know this, because many homes in these categories are listed at the same price with no differentiation for the deficiencies.
The interesting thing is buyers are typically much more in tune with the fair market value of a home than sellers. That’s not true 100% of the time, but think about how this works. A seller asks a Realtor to look at comps and come up with a listing price. Some sellers simply trust their Realtor, but other sellers have been looking at a few homes in the area and they know what they have in their own home, so they may have a number in their head, but my experience is that in 95% of the cases, sellers have a higher number than the current fair market value. This is true. This is no criticism of sellers. It’s just true, and has been true for the past 30 years I’ve been in real estate from Alaska to Washington to Nevada, and most likely all over the country.
Sequim Homes for Sale on Short List
Now consider your average buyer in Sequim. That would be a retired professional couple who has been planning the move for a long time. They have owned several homes in their lifetime, and they are careful and wise with their money and investments. They know how to do their due diligence on homes and prices long before they get here. They hire a Sequim Buyer’s Agent (that would be me), and they are well educated before they ever arrive to look at Sequim homes for sale.
By the time they look at their short list of prospective homes, they have seen hundreds on the Internet, and by the time they write an offer, they have walked through a dozen to two dozen homes. Is it any wonder buyer’s are more in tune with prices?
What does all this mean? It means sellers list their Sequim homes for sale at prices all over the price map. So you end up with huge price discrepancies. For example, consider these listings (the actual prices have been slightly changed to protect the guilty):
House No. 1. A brand new 3 bedroom, 2 bath home with 1,850 square feet on a quarter acre lot. Listing price $230,000.
House No. 2. A 1972 manufactured home that is run down, but with 3 bedrooms and 2 baths, a couple of sheds in the yard. Listing price $260,000.
House No. 3. A 1980’s single level 3 bedroom, 1 bath home with 1975 square feet on a freeway. Listing price $270,000.
Sequim Homes for Sale Priced Reasonably or Not
If house No. 1 is priced at true fair market value (FMV) in this market, and if the other two were commensurately priced, the other two would be $20,000 to $70,000 less than the new home. But they are not. We have discrepancies like this among Sequim homes for sale (and Port Angeles home for sale).
I’m often amazed, because the gross price discrepancies are so obvious to a buyer who looks at many Sequim homes for sale and compare them (and to Realtors like me who look at hundreds of homes and compare them). One might ask why such discrepancies exist. Ultimately, the answer must fall back on the seller. The seller bears the responsibility to price the home right, and while relying on a Realtor may be the reason it is priced where it is, the seller still bears responsibility. In most cases where a home is priced grossly out of proportion to other (and even better) homes, it is because the seller insists the Realtor list it at that price.
I strongly urge buyers who are looking at Sequim homes for sale to hire a professional Realtor who can help them make these important price distinctions.
Last Updated on September 4, 2011 by Chuck Marunde