How to Sell Your Home in 7 Easy Steps - Step 1

Step 1 - Understanding Current Market Conditions

Have you been dismissing thoughts of selling your home because of the economic climate.  Here are 7 easy steps on how to sell your home that may help you decide when and if the time is right for you.

1. understand current market conditions
2. assess the current value of your home
3. set the right price
4. calculate the bottom line
5. prepare the home for sale
6. create an advertising and marketing strategy
7. review contracts and common sales practices for your marketplace

Understanding current market conditions is the integral first step in achieving a successful sale on your property.

In looking at what is going on in any market, you will find there are several key indicators which must be taken into consideration. These indicators predict supply and demand, which are the critical determiners of price and the speed of sale.

The first indicator is the number of Homes For Sale in the market and, more specifically, your price range.  The number of homes on the market represent the supply side of the equation.  The question you need to ask yourself:  "Is this number increasing or decreasing?"

The next factor to take into consideration is the demand side or the number of homes Pending which represents the current buyer activity in the marketplace.  The Pendings represent those homes that have received an accepted offer and are on their way to closing.  The question is:  Are current trends showing the number of days on the market increasing or decreasing?  Are current trends showing number of pendings increasing or decreasing?  

The figures below are an example of an overview of the St. Louis Real Estate Market as of July 17, 2012. It breaks down the numbers by price point and also gives you a detailed picture of the overall market.  It gives you the advantage of knowing the months of inventory (absorption rate).  It is an indicator to how many days your home will be on the market, the percentage of list price to sale price, and the ratio of supply and demand.   A knowledgable real estate agent has access to these numbers and will help you analyze them as they relate to the sale of your home.

Understanding the overall marketplace is essential in your decision of whether to sell and it sets your expectations.  If the months of inventory in your price point is over 7, for example, you will know that you are in a buyer's market and if it is under 4, you are in a sellers market.  

Other things to consider are:  How many Homes are Expiring (not selling), Average Listing Prices, Average Sales Prices and Days on Market.

To be continued: The next step - assessing the value of your home.

from the desk of Barbara Heise, Broker Sales Person with Keller Williams Realty STL, 314-677-6046

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