In the beginning of the year I always look back on the market to see what the trends were for the previous year. Partly because I’m curious, and secondly because it helps me advise my clients.
I took a spread from June 1, 2007 through December 31, 2007 in the Post Falls area.
The list price average was: $244,385
and the SOLD price average was $238,625
That means that on average sellers give up 2.5% in negotiations. In neighboring Spokane the average sales price is $208,000 and concessions average 2-3%.
The average time on market for this timeframe was nearly 4 months at 115 days.
What does this mean?
For motivated sellers – pricing is important. Pricing a home 2-3% below market will typically yield more showings and a quicker sale. If you can provide value – your home will sell faster. It’s a common fallacy that one needs to inflate the price in order to negotiate. It’s always better to receive an offer and negotiate than to not receive any at all. If you can afford to wait the market average of 115 days for an offer then you have some room on the price.
For Buyers – do your research. Ask your agent (hopefully me!) to pull comps on the property before making an offer. Know what other properties around the area are selling for and make your best offer. Keep in mind that sellers on average are giving up 2.5% from the list price (which doesn’t include how many are paying closing costs etc.).
If anybody has any questions on the Post Falls – Coeur D’Alene Real Estate markets – give me a call or contact me. I’ll be happy to send you any information you need!