These days in the Southern Oregon real estate market, listings and prices are all over the map. Generally speaking, in this market teeming with uncertainty and overshadowed by a lumbering, slow economic recovery, the properties that sell are the ones that are at bargain basement prices, plain and simple. Often multiple offers come in on foreclosures that are listed for a “bargain-basement price,” and anything priced over 400K is a slow boat sailing toward China.

Given this bleak reality check driven by low-end distressed prices, there is one proven “must sell” strategy. First, determine what you believe is a fair price for the property. Next, determine what your bottom line price would be for the property. Then, decide upon an amount of money that you are willing to drop the price by every two weeks as you head toward your bottom line. Typically, dropping the price by 5 to 10 grand every two weeks will get Buyers’ attention.

This strategy bargain basement price reduction strategy works in any market, particularly the Southern Oregon real estate market, and you will definitely recognize the signs as the property approaches a feeding frenzy. Activity will dramatically increase, evidenced by phone calls, inquiries, showings, and of course, offers. This method is the only way to compete with the bargain basement prices of foreclosures. The question for sellers is… how low will it go before the music stops and you land at or near the “bargain basement” price.

Let’s face it, real estate has never been tougher… at least in my lifetime. I remind everyone that it was only a year ago when the financial system was at a crossroads. Either bail it out or let it collapse, and I know we did the right thing with the bailout. The alternative would have been disastrous and it would no doubt have plunged the globe into a worldwide Depression with bankruptcies, unemployment, and a dollar crisis that would have been economically crippling. Instead, we have the Great Recession, increasing unemployment, and a huge debt load for future generations. Interestingly, inflation is being held at bay and there are promising signs of recovery.

What started this crisis was the sub-prime mess in the housing sector, and frankly, the housing sector is still in crisis. Yet, despite my dire summary, I am optimistic that recovery will continue, albeit ever so slowly, and that when we finally return to a robust economy, the lessons we are learning will not be easily forgotten.

Michael Masters

A Socially Conscious Real Estate Consultant

     

More on Topics: Bargain, Bargain Basement, Bargain Basement Prices, Basement, Estate, Foreclosures, Market, Oregon, Prices, Real, Real Estate, Southern, Southern Oregon, Southern Oregon Real Estate, Southern Oregon Real Estate Market

Tags: Bargain, Bargain Basement, Bargain Basement Prices, Basement, Estate, Foreclosures, Market, Oregon, Prices, Real, Real Estate, Southern, Southern Oregon, Southern Oregon Real Estate, Southern Oregon Real Estate Market

This entry was posted on Friday, September 25th, 2009 at 9:00 am and is filed under the category Grants Pass Real Estate, Michael Masters, Real Estate, Southern Oregon Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.