Effectively pricing your lake property in today’s “Buyer’s Market” requires some preparation. Determine your reason(s) for selling. Maybe you don’t use the property anymore, want to cash out and reinvest your equity somewhere else, or maybe you are upside down and don’t have a choice. Most of us have a figure in mind when we are asked “what do you want for your property”. Keep in mind, in a buyer’s market the rules of the game have changed. With the increasing number of days that property is listed on the market, and many anxious sellers, buyers will utilize their recently acquired leverage. Because of the large selection of properties available at each price point, these buyers look for a property with the best value. To sell your lake property in timely fashion, you need to offer the prospective buyer at your price point, the best value on the market.
First, contact a qualified realtor who specializes in the sale of lake property, or an appraiser who deals with lake property, and ask them to prepare for you a CMA or property appraisal. Quite often what a seller “has to have” for their property and what a CMA, or appraisal will indicate as a real valuation, are some distance apart. At the outset, it is better to know what someone is likely to offer for your property, than to go fishing with repeated price reductions, hoping to attract a buyer.
Second, once you have determined the range your property will likely sell for, discuss with your realtor where to set your price so as to offer the property at “below market” value. Example: if a competitive listing, which is overpriced, is offered at 475,000, and your home has been appraised at 400,000, your realtor may suggest you price the house “below market value” at 395,000. While everyone wants to receive the best return on the sale of their lake property, in a buyer’s market, we want to attract as many buyers as possible to our property. Buyers visiting your property will experience for themselves that you offer the best value. History shows with a tepid real estate market, and we are in one right now, that using a “below market” value pricing strategy can make the difference between selling in timely fashion, and playing the waiting game. Remember, smart buyers know the difference between “best value” and a “low price”.