The past few years have made it pretty clear that the real estate market in Missoula, Montana has been affected by the economic downturn. This can be very difficult to digest, especially as a homeowner wanting, or needing, to sell a home. And while it is the objective to sell the home for as much as possible, it is also extremely important to understand how important it is to price a home correctly in this market.
Many buyers who are in the market are operating very cautiously when it comes to making offers on properties. Maybe they have already been through a monetary loss on a property and want to make sure that they are minimizing the risk on the next property. Or, they may be watching the local and national news regarding home values. No matter what the situation, Buyers definitely want to educate themselves as much as possible before purchasing in this market.
Many Buyers have been out there looking at numerous properties, waiting for the “right” one, which definitely takes into consideration price, condition and location. Buyers look at listed price, and compare homes to each other based on the listed price. So, that being said, many times an overpriced listing will really help sell a comparable home that is priced more competitively.
When a home is priced competitively right from the start, it seems to get a better response than if the home is overpriced, and then reduced. Along those lines, I can point out three examples that I know of over the last 6 months in Missoula, MT that have sold for a price over the listed price, because the Seller priced the home competitively and created a situation where more than one party wanted to purchase the home:
- A three bedroom, 1 bath home, with approximately 1,300 square feet of living space, in the Lewis and Clark neighborhood was listed for $159,000 and was under contract in one day. It sold for $160,000.
- A two bedroom, 1 bath home, with approximately 770 square feet of living space and an unfinished basement, in the Lewis & Clark/Russell area was listed for $159,900. This home was under contract in 10 days and sold for $160,000.
- A four bedroom, 3 bath home, with approximately 2,870 square feet of living space, in the Grant Creek area was listed for $397,000. It was under contract in two days, and sold for $410,000.
While there is certainly no way to guarantee that a situation like this one will arise, I want to point out that this does still happen with homes that are competitively placed in the Missoula real estate market.
It is also important to note that if a homeowner is going to be selling a home and purchasing another one, it is quite likely that the loss they may see on the home of their current home could be regained when they purchase their next home. Market fluctuations can certainly provide difficulties, but they also provide many opportunities. The Missoula real estate market is very active, it has just adjusted from the mode of operation of past times.