Pricing Your House to Sell in any market takes skill and knowledge. Many agents will ask you what you want or need to get from your home, and, depending on the market, that system of pricing your home can end up costing you tens of thousands of dollars.
So what do you need to know to maximize your return in any market? You need to know te months of supply there are in your location AND your price range.
In every location, there are real estate markets within markets. Supply and demand are not equally distributed from the $100,000 condo market all the way through the $400,000 single family home to the millon-plus home or multi-million dollar estate. Each segment of the market is its own market. Each town or municipality experiences its unique level of activity in each price range.
This chart from the folks at Keeping Current Matters tells the tale. As a seller or a buyer, your agent should inform you about the conditions in your specific market of interest. The formula tracks how many homes in that market have sold in the past 6 months (whether characterized by price range, neighborhood, style of home…however you are defining it). You then calculate how long it will take to absorb (e.g. sell) all of the inventory currently on the market.
If the answer is 5-6 months, you’re experiencing what is known as a “balanced” market. If the answer is four months or less, it’s a sellers market. And if it’s seven or more months, it’s a buyers market. As you can see from the chart, the months of supply cause prices to either be very strong and perhaps even appreciating, or continuing to be weak and still declining.
The important point to recognize is that most often, there is more than one market at any one time. Ask your agent to show you the present dynamics of the market you are interested in. It’s easy to track, and it’s important for you whether you are a buyer or a seller. The HomeVision Group specializes in consultations with our buyer and seller clients to help them make the most profitable moves possible in their specific market. Contact us anytime to further explore your real estate interests.
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