People are always asking me "what's going on in the market?" So I thought that this would be a great opportunity to explain to the average person what we as agents look at and compare in the different local market areas. There is always an interesting story behind the stats too as how we utilize this information in the real estate market for our buyers and sellers. If you have questions or would like to make comments, or would mor einformation please feel free to give me a call. You can also visit my website Valerie Spaulding and find more information. or drop me an email - email@example.com
When we are reviewing the statistics as agents, we are looking at the
1)Active - they are what is currently for sale in that particular area and the prices. They are the competition to a seller. The actives tells us how many homes are on the market and the type of competition such as square footage of the home, how many bedrooms and baths etc. It shows us the average dollars per square foot as well that homes are being actively marketed at. It also tells us the months of inventory we have on hand for homes. When we talk about how much inventory, what we mean is how many months would it take to deplete the current inventory based on the number of sales in the past? Remember from way back when in school the theory of "supply and demand?" Well this is it in its best showcase. The more supply and the less demand - buyers market; the less supply and more demand - sellers market. I think you get the point. When we are talking about a list price for a home we are utilizing the actives to determine our strategy of where exactly to price the home after we have established a fair market value range.
2) Pending or contingent- this means that the property is currently under contract (buyer and seller have come to a mutually accepted agreement), and the buyer is going through the process (inspection, financing, etc) to reach closing. Pendings are important because they tell us WHAT types of properties and what price range buyers are looking for in this market and willing to make offers on.
3) Sold - the most important to review and analzye because these numbers are a fact of what buyers are willing to pay for a property. A Home is "worth what a buyer is willing to pay for it." Again we look at similar homes and adjust up or down for differences using the dollars per sq ft. The solds also show us the history and what price range buyers are currently purchasing in.
The information is used both for buyers and sellers. For the sellers to help us put their home in the right price range and be competitive as well as establishing the market value. For the buyers it helps determine if the home they are looking at is fairly priced in comparison to other homes in the area.
I would be more than happy to prepare a "FREE"comparative market analysis for your home in particular or get current stats for a particular neighborhood for you. Just drop me a line or give me a call! Information is always FREE and there is no obligation.
Valerie Spaulding- Associate Broker