Blog Stories House Pricing in Portland (a Thought Experiment)

House Pricing in Portland (a Thought Experiment)

By Chad Meier, March 13, 2021

Considering the following criteria…
  • An accurate comp analysis for the owners of the beautiful house at 123 Unicorn Street suggests that a bank appraiser would peg their home’s value at around $513,000.
  • The sellers and their agent end up listing it for $475,000.
  • The market goes crazy for it on opening weekend, and after negotiating with 10 buyers, this seller team agrees to accept an offer of $525,000.
Which of the following conclusions to this scenario ring most true to you?
A. The sellers are truthful when they boast that they managed to sell the house for $50k over its market value.
B. The house sold for exactly its market value.
C. The seller should have listed (i.e. priced) it a bit higher to begin with.
D. The house was actually priced in a tactically smart way.
E. This type of pricing strategy might end up hurting the seller’s financial position once the buyer’s bank conducts its actual appraisal on the property.
F. There’s more to consider than just the dollar amount of any buyer’s offer.
G. I don’t know ¯\_(ツ)_/¯ There don’t appear to be any simple answers right now & it’s all just seems upside down.
H. I’ll provide a different take in the comment section below.
* BTW, even though this is obviously a strictly hypothetical thought experiment, it’s also a common occurrence happening in the PDX metro area right now.
Can’t wait to read your responses!
– Chad

Chad Meier

Broker | OR

Hello, I’m Chad: Licensed Real Estate Broker, native Oregonian, photography aficionado, lover of old houses, friend to all animals, and powered by analytical data. As a member of the National, Oregon and Portland Metropolitan Associations of REALTORS®, I'm proud that my profession allows me to use the tools I've acquired over the past 20+ years (client advocacy, sales & marketing, conflict resolution, et al.) to help people on a daily basis. Bottom line… I love the work! Through personal experience, I understand that buying or selling a home is more than just a business transaction; In fact, it can often be a life changing event! This is why I’m dedicated to providing exceptional service for my clients when it’s time for them to make their move. On the listing side; I believe that every home, no matter how modest or grand, deserves to make the best possible first impression on a would-be buyer. This is why I’m aligned with our area's preeminent independent real estate brokerage (Living Room Realty) to offer every property the most compelling & relevant marketing available. It also means that I’ll never represent your home online with a smartphone picture ;^) On the buying side; I personally work with every client - no handing you off to a junior team member of a team - to ensure that we work toward your goals together and don’t fall prey to some of the pitfalls that buyers can face in today's heavily weighted market. In short, I can help you win! Above all else, I pledge to be a strong advocate for my client’s interests and promise to work relentlessly to help them achieve their real estate goals. After all, I believe that if you’re not left with an amazing experience, I haven’t done my job. Speaking personally, I’ve been connected to this great city and its surrounding areas since childhood. Most recently, my family (wife Shawn, son Jakob, mother Glenna, and mutts Juno & Dizzy) have lived in the vibrant Sellwood-Moreland neighborhood for the past 14 years. When not at my desk or in the field helping clients, you’ll likely find me trying to capture a compelling scene behind my camera lens, playing basketball wherever I can find a pickup game, or combining these two passions by photographing my son’s high school basketball team in action (GO WARRIORS!). And on occasion, you may even find me at any number of our city's finer dining establishments, searching high and low for a bartender who knows the recipe for a perfect Roman Holiday ;^) Whether you have a plan to buy or sell (or simply need to develop one), please feel free to contact me. I look forward to understanding your goals and helping you achieve them! I can be reached at 503-709-9600 -or- Chad@PortlandHomeBase.com
Read More
  • T: 503-709-9600
  • F: 503-961-8224
  • dcmeier@gmail.com

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