How much should I list my property for in Lake of the Pines (Auburn), Calif?

Asked by Jf, Valley, AL Tue Jun 17, 2008

I have a lake front property in the Lake of the Pines, in Auburn, California. Local realtors say to price it at a price that I know does not account for 30% drop in our area since 2006. They also say expect for it to be on market 18 months Their explanation is that there are no buyers anyway, so price does not matter. Many lake fronts in LOP have sat on market for many months and remain unsold, yet they want to price mine using those other listings as a measure for the asking price and/or fair value. Isn't the market value what someone will pay NOW, not in 18 mos? I want to get as much as possible, but i cannot get an answer on market value that makes sense. I am wrong about drop in value, or how to set present market value? I have heard that if you price a property too high, the price you eventually receive will actually be lower than if you priced it at the market to begin with. Any advice--especially from those familiar with the area. Thanks

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Ute Ferdig, Agent, Newcastle, CA
Tue Jun 24, 2008
Hello Jf. I am an agent who works and lives in South Nevada County and I am very familiar with the Lake of the Pines market. I am also a certified property valuator and I'd be happy to discuss the value of your lake front property with you in detail. Without having seen your home, it's not possible to advise you on what a good list price would be.

There's no question that the market for lake front properties in Lake of the Pines has changed from what it was a few years ago when lake front properties sold like hot cakes and we could not get them on the market fast enough.

When we make projections about days on market, we have to look at historical data and when there is very little recent sales history for a particular type of property, making a meaningful prediction can become impossible.

As far as lake front properties in LOP are concerned, there have only been 5 sales in the past 12 months, and the # of days on the market ranged from 0 to 132. Please keep in mind, that only 2 of the sold homes sold for over $1,000,000 and the home with 0 days on the market was sold before it went in the MLS.

There is one lake front pending sale now and the home was on the market for 254 days. The expected closing is not until next year (a very long escrow).

On the active listing side, we have a total of 13 listings ranging from $589,000 to $1,590,000 and the average days on the market is 188 (ranging from 5 to as many as 454). Six of the listings are listed for less than $1,000,000.

I would say, there are still lake front buyers out there, but they have become more price conscious and they'll look at all lake front properties in this area and they are not in a hurry to buy. Most of the buyers we see these days are looking for a bargain and luxury home buyers are no exception. There is no question that price does matter and putting a property on the market to test the market (let's see what happens) is not an advisable strategy for a seller who really wants to sell. Being a motivated seller does not mean that you are willing to give away the house. It just means that you are willing to price your house competitively. While you can't look at those house that have already sold (unless you know the owners), you can look at houses that are on the market and see what prospective buyers will see. That's why I like to invite my seller clients on a tour of competitve homes so that they can see first hand what their competition is.

Please don't hesitate to contact me should you be interested to discuss this further with me. I can be reached at (530)906-7470.
Best regards,
Ute Ferdig
Broker-Consultant
Keller Williams Realty
2 votes
Truett Neath…, , Auburn, CA
Fri Oct 30, 2009
Perhaps it's time to pop for an appraisal. Send me the details and we'll work out a Scope of Work to produce a credible value.
Thanks!
0 votes
Robert Sawyer, , Auburn, CA
Tue Aug 11, 2009
You are correct when you say your home is worth what the next buyer is willing to pay for it. We have had 3 sell in the past 12 months. They have ranged in price from $800K-$1.27M. There is one that is due to close next month at $1.2M. There is another Bank owned property that is in escrow around $650K (Home needs work but lot is awesome). I would be happy to discuss this with you if you want. Please either call, text or email me directly and I will respond right away.

Sincerely,
Bob Sawyer
Coldwell Banker Grass Roots Realty
Call or text me at- (530) 320-8326
bob@robertsawyer.com
http://www.robertsawyer.com
http://www.linkedin.com/in/sawyerbob
“What About Bob” For Real Estate
DRE#-01474774
Web Reference:  http://www.robertsawyer.com
0 votes
Katy Orellana, , 95603
Wed Oct 29, 2008
It has been quite awhile since you posted this question....are you still in need of assistance? I am a Realtor who works in Nevada and Placer Counties...I live in Lake Wildwood....I would be happy to give you an up to date analysis. Call me @ 530.277.7020. Katy Orellana, Sales Manager, HomeTown Realtors
Web Reference:  http://www.seehometown.com
0 votes
Jim Martin, , Bay Street Viaduct Area, Savannah, GA
Sat Aug 2, 2008
i am actually looking for a home in the LOP area. my family lives in lake wildwood and we wanted to be "somewhat" close to them. please call me 408-291-8007
0 votes
Robert Flood…, Agent, Roseville, CA
Thu Jul 10, 2008
Hello Lake of the Pines Seller. What you should be shown is what has sold in the last 6 months and what is pending. Also important to look at what has expired or better known as what failed to sell. If nothing has sold than this is telling you the homes on the market are not priced correctly. There are Buyers out there, recently put into escrow a 1.4MM property in Auburn. Your home must be priced properly and look the best it can. You then need an agent who will be honest with you and market your home. I would be happy to consult with you. Robert Floodman Coldwell Banker Residential Brokerage, Auburn 916-204-7309
0 votes
Maria Avdalas, , Sacramento, CA
Wed Jul 2, 2008
One way to increase the money you make is to sell the home as an "For Sale By Owner". We offer flat fee commission to help people in this market make up for some of the money lost with this market. As a "For Sale By Owner" you could even offer a high commission to the Buyer's Agent in hopes of attracting more people. As part of our packages we offer you updates with a market comparables.
Web Reference:  http://realtyaid.net
0 votes
Jim Walker, Agent, Carmichael, CA
Mon Jun 23, 2008
I am going to recommend Ute Ferdig, a Trulia MVP who works in LOP.

A CMA may have to search wider than LOP if there are no sold comps. I'd look at Combie, Auburn, Grass Valley. Nevada City, Colfax. Maybe further, if your house is very unique. It may be a good strategy to start out higher than the more distant comps but lower than the competing LOP listings.
0 votes
Amy Summers, Agent, Auburn, CA
Tue Jun 17, 2008
First I would commend you. Many sellers think just the opposite. They want their Realtor to list their home at an inflated price, finding it hard to admit that their beautiful home has lost value.

Buyers are out there. They are educated on the current real estate market, thanks to the world wide web. They know what a real value is, and that is what they are looking for. If you want to sell your home in a reasonable amount of time, it needs to be priced below your competition and look better. The top reasons that homes sit on the market for an extended period of time are, 1) Price and 2) The home does not appeal to the buyers. Yes, there is a lot of inventory out there, and that is a contributing factor as well. But if it shows well and is priced so that it looks like a real value to the buyer, you chances of a successful sale are elevated.
Although the media is starting to mumble about reaching "the bottom" of the market, no one can predict whether or not prices will continue to drop. The last thing a seller wants to do is "chase the market". Keeping the price of their home just above it's actual value. Then prices fall, and they find themselves over and over lowering the price of their home. Where as if they has just priced it correctly to start with, it may have sold months ago at a higher price. I have seen a seller turn down an offer of, say, $20,000 under asking price, and then see the same home on the market months later at $40,000 or $50,000 less.

Lake of the Pines is a wonderful community . It has so much to offer , with the lake, golf, wildlife and beauty. A lake front home will, of course, command a premium, but it still needs to be perceived as a sound value to a buyer. It sounds like you have educated yourself on the current market conditions, and have a realistic view. Stick to your guns!

I have added a link to some additional information on home pricing.
0 votes
Homa Moaddel, Agent, Foothill Ranch, CA
Tue Jun 17, 2008
To find the value of your home an agent must do "Comparative Market Analysis" or CMA. CMA can be done many different ways and many things affect it. Since prices change rapidly you need a CMA for the last 3 months or so. If there is not enough property sold at your neighborhood than agent should find a comparative neighbors to reach at a price for your home. Pricing your home too high will make serious buyers walk away without giving you any offers. I hope my answer was helpful.

Sincerely,

Homa
0 votes
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