How much should I list my property for in lake of the pines (auburn), calif?

Asked by Jf, Valley, AL Mon Jun 9, 2008

I have a lake front property. Realtors say to price it at prices that I know do not account for 30% drop in our area since 2006. They also say expect for it to be on market 18 months. Seems crazy, frankly. 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?

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Ute Ferdig, Agent, Newcastle, CA
Tue Jun 24, 2008
I saw you posted the same question twice and I am just reposting my response to the other question as I was not sure whether you'd see this answer.

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
Web Reference:  http://www.uteferdig.com
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