Lauren’s Local Knowledge: Three Listing Strategies for Sellers in Mammoth Lakes
If you read my last post, you know the real estate market in Mammoth Lakes is a great place for sellers. Keep reading for the latest data about the local real estate market for the 93546 as well as three strategies every seller should know.
As of this morning, there are 47 condos and 15 SFRs in escrow in Mammoth Lakes. Median days on market for pending condos? 46 days. Median days on market for the pending SFRs? 57 days. Typically, listings get the most activity during the first 30 days on the market and the best offers usually come in during the first month of the listing period.
But, pricing strategy is more nuanced. To maximize the sales price of your unit, your pricing strategy must be informed by market trends as well as the condition of your unit. Due to the low inventory available in Mammoth Lakes, these rules are amplified.
1.) Price at or below market value if you’re selling an unimproved home or condo! Attractive pricing ensures the most views and showings. This also cultivates excitement about the property and often generates multiple offers, which increases the sales price over and above current market value. Buyers’ frustrations often cause a bidding war. Competitive pricing has been the strategy of the short sale market and REO market for some time. Other advantages? A quick sale and backup offers if the first deal doesn’t close escrow. This strategy is best for unimproved homes and condos in original condition or with some deferred maintenance.
2.) Price 5% to 10% above market value – if you’re selling an improved home or condo!</b> If you’ve upgraded your condo or home and it’s currently in good condition, price more aggressively. As prices in other areas have been increasing, buyers are looking seriously at offering more than the last sale comp to acquire a property they see as unique and turn-key.
3.) Price 10% over current market value if your property has serious upgrades or “wow factor”!This approach will require more patience on the seller’s part because offers generally arrive in 60-120 days marketing time. Today, these properties are getting showings, but often experience lowball offers and result in long negotiations, with the possibility of appraisal difficulties during escrow.
If you want to get more than 10% over current market value look for cash buyers without an appraisal contingency. This greatly narrows the field of available buyers considering the low interest rates available from lenders today, but often delivers more qualified buyers. If an offer is accepted with an appraisal contingency, it may require price negotiations during the escrow period. That being said, there hasn’t been a better time for this strategy in Mammoth than now and the chances for success are more favorable now than at any point in the recent past.