In today’s real estate market, there is no time to waste by setting the wrong price for your home or, even worse, testing the market to see if you can get a higher price first before “settling” for a realistic price. When your home is priced right, it will sell…FAST!
Knowing exactly how to pick that “right price” is the difficult part, and we’re here to help. As real estate professionals, we know our local market, the price trends and your neighborhood. We have access to data from a variety of sources to show you how to arrive at the right price for your home. We also examine our real estate market’s “Big Picture” to provide you with the best information to price your home right — and price it to sell.
As a home seller, the more you know, the better your price will be. Here are eight top pricing need-to-knows we use to craft a price for your home. Give us a call to learn more about how to get your home sold.
New Listings If you list your home for sale right now, new listings — homes on the market 30 days or less — show you exactly which homes your home is competing against. You want your home to stand out in this crowd not only by price, but also by condition, making it a great value. We price your home and work to get it sold before it leaves the “new listings” category.
Active Listings Active listings are the total number of homes on the market, including those under contract. Watching this number shows whether homes are selling and whether new properties are coming on the market for sale. While your home is on the market, until it closes/settles, it is considered an active listing.
Average Days On Market When average days on market is high, that means it’s a buyers market with homes taking longer to sell. In this situation, you need an aggressive listing price for your home to attract attention — and buyers — immediately. The longer your home is on the market, the less attention it will get — no matter its condition. When your home lingers for sale, buyers often assume that your home’s price is too high or something is “wrong” with the property — whether true or not.
|A correctly priced home creates urgency, captures the first buyer and minimizes your time and expenses.|
Months Supply Of Inventory The supply of homes for sale, relative to demand, has a major impact on the direction of home prices. Months supply of inventory is the total number of new and existing homes for sale divided by the number of homes sold per month. Balanced markets (where neither buyers nor sellers have a particular advantage) have about a four- to six-month supply of homes. As inventory exceeds a six-month supply of homes, buyers begin to have an advantage and downward pressure on prices may occur; when inventory shrinks below a four-month supply, competing buyers bid up home prices.
List-To-Sales Price List-to-sales price data is a ratio showing how much a home was listed for initially and its final selling price. When selling your home, you should entertain every offer made on your home. In a buyers market, the final sales price sometimes can be below the listing price…unless you have priced it aggressively from the start, in which case you may receive several at- or above-price offers. If, for example, homes were selling at 92% of list price six months ago, but are now selling at 95% of list price, we know downward pressure on prices is easing.
Expired Listings Home sellers who have had their home on the market for the duration of their listing contract (say, 90 or 180 days or more) and have not accepted an offer to sell are called expired listings. This doesn’t mean the sellers didn’t receive offers; it simply means that they didn’t accept one. Looking at expireds is a great way to determine what prices (and associated property conditions) are not selling in our area.
|Overpricing is the costliest mistake most sellers make.|
Canceled Listings Homes that go off the market because the listing is canceled may be removed due to the sellers changing their mind, circumstances changing (relocation canceled, foreclosure, etc.) or simply not getting an acceptable offer. Again, canceled listings provide insight into what the market can bear in terms of home price and condition, but be careful; a well-priced home listing might be canceled for reasons other than lack of offers.
Putting The Data To Work For You Remember, each piece of data on its own is just a single piece of the pricing puzzle. We will help you understand the data and learn how to use it to arrive at the best listing price for your home. Feel free to give us a call when you are ready to sell your home. We’ll analyze the current market trends to help you price your home to get offers and to get it sold!