Pricing Your Home
PRICING YOUR HOME IS PART SCIENCE AND PART SKILL
Knowing the current market environment is critical in order to sell your home for the best possible price, there are several factors to consider:
TIME OF YEAR
In most areas, the spring is typically the hottest market to sell a home. The weather is warming up, school is coming to an end, and families take the summer break to get moved and settled before the new school year. The next best season is the fall. Family vacations are over, everyone is back in a routine, and they have the time to put into the home buying process. There may be a different type of buyer in the summer months, those singles or families without the restrictions of the school year. The winter months can be considered a Buyer’s Market in "normal" market environments because those that are selling during the holidays are generally highly motivated by life events to sell.
It’s simple supply and demand. When there are more buyers than inventory of homes for sale, houses will get multiple offers and higher sales prices than if there are lots of homes for sale and fewer buyers. Even if inventory is low in the area, some neighborhoods may have a lot of competition to sell, making it harder for you to get the price you want. The more desirable of a neighborhood and lower inventory, the higher home values rise. Interest rates can also create a higher demand. When interest rates are low more buyers may be on the hunt than when interest rates are rising.
READY TO PUT YOUR HOUSE ON THE MARKET?
Consult with me, your local real estate agent, to ensure your house is priced competitively and well-staged. While there are always three factors to getting a home sold...
...only two are within your control: price and condition. Of the two, price is more significant. Remember that price will correct bad condition, but condition will never overcome a bad price.
At the home consultation, I will provide you with a CMA (Comparative Market Analysis). This report can be one of the most important tools in determining the list price. We will review the CMA together so you understand the current market in your neighborhood. Studying the past sales will help us develop a pricing strategy while giving you a realistic expectation as to how much your home might appraise for when you accept an offer. Remember, the listing price of a similar home is your competition, not a comparable for value. Active listings have not sold.
The CMA report usually contains:
Active listings in your area with a similar home; age of construction, number of beds, baths, and square footage.
Sold listings are homes that have sold within the last three months, plus pending sales that are likely to close by the time your home is sold.
Off-Market or expired listings. These are properties that were taken off the market for any reason.