Today we’re going to talk about pricing strategy. Thanks so much for checking out the real estate podcast.
I’m Bob Nelson. Real Estate Investment Broker with Pacwest Real Estate Investments. I’m Marcia Edwards, Residential Broker with Windermere Real Estate.
Marcia Edwards: We want to talk a little bit about pricing strategy. One thing I picked up on in residential, anyway, is that a lot more properties recently have come out of the gate at a price and had to adjust that price prior to receiving an offer. There not hitting the price out of the gate.
Bob Nelson: I was anticipating that you’re saying the price is coming down.
Marcia Edwards: Well I don’t know if … That’s what I’m studying right now. Are the sellers too optimistic coming on the market and they’re raising their own price prior to hitting the market or are they hitting the market where they would’ve previously and the markets adjusting.
I think it’s prior. I think it’s actually, there’s something going on in regards to the mind psychology of sellers.
Bob Nelson: It’s interesting because nationally … Now of course this stuff goes on my blog and somebody’d have to look at the date we’re speaking but … Nationally helm prices have declined three months in a row, which is interesting. That’s a sign of what? Exuberance on the part of the sellers not matched by capacity on the part of the buyers? That’s how I read that.
Marcia Edwards: As you can see we’re trying to get our bearings as quickly as we can, ahead of you, so that we can coach and council, in regards to that.
What these indicators are, we’ve seen them before having been in the business for a bit of time, and we know that what we’ve gotta watch right now is keep our finger on the pulse in regards to the consumer. There’s been a bump in interest rates for residential financing. That bump sounds like it’s just a bump for now. It shouldn’t be wiggling too much in the short term. It will, in fact, impact consumers.
Bob Nelson: As that happens, it’s an interesting philosophy, how do I then price in a market that is no longer increasing at X percent per month, or X percent per year. How do I anticipate where I need to be in order to sell what I want to sell? There’s probably good reason that I’m selling what I want because I’m going to get something different that I want even more.
Marcia Edwards: The buyers capacity, at the same time, is diminishing slightly when the interest rate goes up. That combination is something we do need to grab hold of and get our heads around quickly.
Bob Nelson: Well it’s interesting, any time it’s a very predictable market, things are going at as they did awhile back and it just continues on. As soon as there’s a speed bump in the road, there is a mental adjustment like, “Oh gee, I’ve missed it. Okay well I’m gonna sit down for awhile.” The people taking that exhaling breath is interesting.
Marcia Edwards: We’ll grapple with this new strategy out there and talk pricing, next program. I’m Marcia Edwards, Windermere Real Estate.
Bob Nelson: I’m Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments.
Join Bob Nelson and Marcia Edwards Eugene, Oregon, real estate experts daily at 5:30 on KPNW for the “Real Estate Today ” radio show.