Home Selling in Clackamas>Question Details

Andrew, Home Buyer in Clackamas, OR

How do we narrow the 40k range for our market analysis?

Asked by Andrew, Clackamas, OR Fri Aug 15, 2008

We are in the process of deciding whether or not to sell our home. A market analysis from an agent was 360k-400k . It's difficult to make a decision with such a large range. It would definately be worth selling at the top end of this, but not at all for the bottom end. Any thoughts on how we may be able to get a better idea of what our home might sell for?

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Dale Crockatt- Broker’s answer
An appraisal is not a guarantee that a buyer will purchase it at this price, in today's market. Today's buyers are looking for bargains and it may be difficult to obtain top value when there are so many selling for what the market will bear. An honest discussion with your Realtor regarding your reasons for moving and ideas to make your home stand above the rest will be beneficial. If the only reason you would sell right now is if you can obtain top value, you may want to re-evaluate your priorities. The Clackamas area is one of the hardest hit areas in the Portland area- you have a lot of competition motivated to sell or face undesirable loan problems. In much of this area there is over a twelve month supply of homes- that means you have a one in twelve chance (or less) of selling in a month. The homes that sell will be the best priced 8% on the market. Ask yourself if you can afford to market it in this position before you start making plans. Of course there are always exceptional homes that defy the trends, if you fit into that category, but even then they must be reasonably priced.
1 vote Thank Flag Link Fri Aug 15, 2008
Hi Andrew,
When it comes down to deciding upon a listing price it takes some real work. You and your agent need to take a long careful look at what active, pending and solds. Then compare those properties to your own home. Pay attention to size (price/ sq.ft), condition (have there been upgrades or is there deferred maintaince on the property) and location (quiet street vs. busy corner) because these issues add or subtract value to a property. It may help to go take a look at the properties you are comparing yours to - especially those that have sold. If you can't get inside take a drive by and check them out that way. You can only see so much from pictures on the internet. I would also suggest you tour some open houses in your neighborhood this weekend.

It is a very competitive market for selling homes today. The listing price is crucial because there are fewer buyers than homes for sale and you want to make sure those buyers don't skip past your home because your aren't price competitively.

Cricket Forsey
Keller Williams Realty
Portland Premiere
1 vote Thank Flag Link Fri Aug 15, 2008

One of the problems with an adjusting market such as the one we are in is that sellers too often miss the boat on the bottom of their local market. Case in point..... had a customer that turned down an offer of $410,000 for their home and sold it 18 months later for $320,000. Does this make sense?

You need to decide if you really want to sell and decide on a price that today's buyers can't afford to walk away from. Make your home the best home offered at the best price and it will sell.....anything less will delay your future plans. Your agent may be too nice to tell you but think about being real close to the low number.

Good luck,
0 votes Thank Flag Link Mon Sep 15, 2008
Did you just get a market analysis from the agent, or did the agent give you a listing presentation?
Most agents are not going to get more specific until you decide to work together.
0 votes Thank Flag Link Mon Sep 15, 2008
Andrew, the Clackamas area has allot of inventory. The first question is why do you want to sell? Job relocation,move up, move down. Sounds like you are not to motivated if you don't want to sell at the bottom range. If you are going to buy something larger there are some very good deals out their. The farther out the market in Damascus really falls apart and only new homes are selling under $350,000. Closer in it is better. I like what someone said tour existing listings and drive by pendings and solds to get an idea of what you might sell for. Rates are something that you should consider when buying or selling. If rates are down like they are today you can buy $40,000 more house in the $400,000 range over last year. So you might not get what you want out of your house but your payments might be what you want since you can get $40,000 more house buying power. If you are just selling to sell you have a few years to wait this out where you are located before the values ever come back to where they were, I would quess 5 years at least. Loan programs will change Oct 1, 2008 when the interest rates adjusted off your credit score. That might not matter to you but the buyer buying your house might just have their interest rate increased by 1/4-1/2 % and that hurts your sales price buy $10,000-$20,000 in buying power if the buyer is trying to keep their payments at a certain number. It is a tangled mess this interest issue. Is your house like new, redone top to bottom because you are in a beauty contest and a price war. Your house must compete with new construction or be very special. If you are just another house is the block with all the homes priced about 5-8% apart there is not enough difference for a buyer to step up. Do you have a 3 car garage? Many new homes do not have this option and it is a big selling tool if you have a larger lot with extra space or RV parking. Good luck and there are reasons to move to get in to a appreciating neighborhood in the future that is much newer or a better location than yours. Don't focus on the price if there are other issues and don't consider what your neighbors house sold for last year, it doesn't make any difference today.
Tom Inglesby, Broker
RE/MAX Equity Group Inc
0 votes Thank Flag Link Mon Sep 15, 2008
Great advice to have actually see your potential competition. Remember these homes are not yet sold. Do not always assume your home is better. If your competition is not selling your home needs to be priced less than them. If your home does not sell some of your competition may adjust there price down too. keep evauluating the market at least weekly if you do list your home. Remember that if you can not sell for your bottom line price then take your home off the market. Do not put yourself through the frustration of little or no showings and the effort to keep your home in showing condition.
0 votes Thank Flag Link Mon Aug 18, 2008
That is a pretty wide range. I'd suggest two steps:

First, talk to a second Realtor and get a second CMA.

Second, actually tour the properties on the market that are similar to yours. The CMA will probably be based both on recent sales and on what's currently on the market. Get an "up close and personal" feel for your competition. That should give you a much better idea of the price range your home will fall into.

Hope that helps.
0 votes Thank Flag Link Fri Aug 15, 2008
Don Tepper, Real Estate Pro in Burke, VA
Hi andrew,
Take a good honest look at the competing homes for sale in your area and see exactly where you fit into the price equation. In the high 300's or middle?
All the best,
James Joseph
0 votes Thank Flag Link Fri Aug 15, 2008
Get a Comparative Market Analysis from another agent. You could go and spend the $300-400 for a licensed appraiser and they're going to use the same data as an experienced and knowledgeable agent will use to determine an approximate value.

A quick review of the Portland MLS shows that there are a number of properties priced BELOW what they appraised for. I’m not sure I’d spend the extra money unless it’s a rare and difficult house to comp out.

In this declining market, price is key – you’re better off to price near the lower end of the range and generate multiple offers, rather than price at the high end and get few showings. There is almost 11 months of inventory in the Portland market – buyers have much to choose from.

If you’d like a free no-obligation CMA, just call me!

Chris Aldridge
RE/MAX Equity Group
0 votes Thank Flag Link Fri Aug 15, 2008
GREAT QUESTION: Spend approx. $300 have your home appraised.
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0 votes Thank Flag Link Fri Aug 15, 2008
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