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Home sales tip No. 1: Cut price, cut it again

Published 9:40 pm Sunday, August 8, 2010

By Mike Benbow, Herald Columnist

When I wrote a news story the other day on how home sales have dropped significantly since the federal income tax credit for buyers has expired, I got an e-mail from a reader suggesting that most prices are still too high.

It was from a guy trying to sell a home without too much success, so I’m not sure whether he thought everybody else was asking too much and his house was worth his asking price, or what.

But he has a good point.

If you what to sell a home in Snohomish County or anywhere else today, price is king.

I don’t pretend to be a real estate expert, but all the people I talk to and all the stories I’m reading agree that the first thing buyers are looking at these days is price.

How do you determine the right price?

First, forget about what you paid for the house or what you think it’s worth or how much money you want to make. If you have to sell now, you need to look at what comparable homes in your neighborhood are selling for and price yours accordingly.

And that’s a bit of a moving target.

I was looking at the median price for homes (single-family houses and condominiums) in the release from the Northwest Multiple Listing Service last week and saw that prices having been dropping for a while.

In July, the median price, meaning half the homes sold for more and half sold for less, was $270,000, compared with $292,000 in July 2009. Since January, homes have been worth about $30,000 less than they were the previous year.

That may not be the case with your home, but the median price has been falling pretty steady for some time. Last month it dropped around 7.5 percent.

That hasn’t been the case in King County, which saw the median price rise 7 percent to $370,000 last month. I’ve mentioned in previous columns that the difference in median housing prices between the two counties is a number I watch.

That’s because when the difference gets big enough, I think that people who work in King County and would like to live there find themselves commuting from Snohomish County instead because homes are such a better deal.

That’s generally true of all suburban communities in metropolitan areas around the country.

Traditionally, the Snohomish-King price difference is about $50,000, less as you get closer to the King County line.

The median price for homes sold in the Maltby area of Snohomish County just north of the King County line list month was $372,000, virtually no difference between counties.

In the Stanwood/Arlington areas, the median price was $229,715 in July.

Maltby generally has larger and newer homes, so you would expect a higher price. But in general, you can definitely pay less if you’re willing to drive more.

Other home prices around the county in July:

  • Edmonds, Lynnwood, Mountlake Terrace: $285,777.

    • Everett, Mukilteo: $260,000.

    Snohomish, Monroe: $259,950.

    I’m giving you these numbers so you have a sense of what’s happening with prices in the county. You’ll want to consult a professional when setting the price for your own home.

    In addition to prices, presentation and staging is also important.

    If your home is a fixer-upper, it should be the best looking fixer-upper in the neighborhood with the best landscaping and the nicest paint job.

    The economy is making it a lot tougher to sell homes these days, but there are things you can do to make your home sell more quickly.

    Mike Benbow: 425-339-3459; benbow@heraldnet.com.

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