What Will I Pay For a Franklin TN Condo/Townhome? November 2014
The primary factors determining how much you will pay for a Franklin TN Condo/ Townhome are the size of the unit, the condition of the unit and its location. Did I mention location? In addition, and of great importance to you, is how competive the marketplace is at the time you are buying--whether prices are going up or down, or whether it's a buyer's market or a seller's market. To understand these factors you need to look at a current market report. Let's take a look at what happened in Franklin TN in October.
- Active condo/townhomes listings: 55
- Of those units currently on the market, the number under contract: 12
- Properties closed in October: 24
- Average sales price: $233,421
- Average list price: $237,504
- Average sales price to list price ratio: 98.3%
- Average days on the market: 53
- Average sales price per SF : $149.53
- Lowest sales price per SF: $93.42 (Orleans Estates)
- Highest sales price per SF: $241.20 (Grant Park)
How does this information impact buyers? If you are a buyer you will want to know how much competition you might encounter when you are ready to make an offer. Is it a buyer's market or a seller's market? This is critically important to you, the buyer. To determine whether it's a buyer's or seller's market, REALTORS® use something called absorption rate. If you take the current inventory of 55 homes and divide that by last month's closed sales (55/24) you get 2.3 months. That means if the current inventory stayed the same, it would take only about 2 1/3 months to sell all the existing homes. A normal or steady market would be 5-7 months; anything under 5 months would be considered a seller's market; anything over 7 months would be considered a buyer's market.
The Franklin TN condo and townhome sales for October tell us we are currently in a seller's market. The relatively low inventory compared to the steady demand makes for a very competitive marketplace.
Over the last year, prices on condos and townhomes have risen an average of 10%. The sales price to list price ratio remains at a high level (98.3%). If a unit is "priced right", you may have a somewhat limited ability to negotiate.
Who determines whether a unit is "priced right"? That's a good question. This is where it is extremely important to enlist the aid of an experienced buyer's agent to help you pay no more than you should for the condo or townhome you desire. Remember, the listing agent represents the seller, not you, the buyer!
In this market, buyers need to act very quickly to secure the home they desire. TW Realty Group is here to help. When you are ready to buy a Franklin TN condo or townhome, contact Tom White of TW Realty Group at (615) 870-8169.
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