You want to buy or sell a house or multi-unit property? Know the local real estate market statistics before you make a move. Knowing the real estate market is a great way to
- Determine your price to Sell your Home or Sell your Property
- Determine your home improvements before you go on the Market
- Determine what price you should buy a home
- Determine what repairs you should negotiate for
So to get you started successfully, I am writing this 3 part series
- Part One The 5 What Real Estate Market Statistics You should Know
- Part Two: How to Price Your Home to Get Its Full Value and Equity
- Part Three: Homebuyers How to Negotiate like a Pro
Yes, I know most people aren't crazy about math, but numbers can be informing. And you can be clear by knowing what numbers to look for and what they mean. For my target areas Contra Costa County and Alameda County in Northern California those numbers are kept by Title Companies, County Recorders, but the most comprehensive and accessible are kept on the Multiple Listing Service (MLS).
The MLS of the East Bay(tm) keeps the following listing statuses:
· Expired- Listings that have expired within the selected time period. Expired listings are those which were listed to sell but didn't.
· Active-Listing that are currently being offered for sale
· Pending- Listings that have gone under contract but have not yet closed within the selected time period.
· Sold- Listings that have sold within the selected time period.
· New- Listings that have been added to the MLS within the selected time period.
When gathering these numbers make sure the geographical area is as small as practical. For example knowing the statistics of Contra Costa County will not help you price a home on Giant Road in Richmond. The area is too big to get a clear picture. You want to hone in like you would look for directions in Google Maps TM. Keep going to smaller and smaller areas until you can pinpoint your mark. Even knowing the market statistics for Richmond won't get you to the price of the home on Giant Rd. The City of Richmond, CA is too big because Richmond statistics vary from neighborhood to neighborhood.
Also pare down the type of building; the four-unit building real estate market is different from the single-family residence market. Make sure you are comparing apples to apples.
Each of these categories has an average price. What happens most is that Expired listings are on average higher priced than Sold listings. There are individual exceptions, but the rule is that Expired listings are on average higher in price than Sold listings. For more on that see next weeks blog.