The 3 Most Important Factors in Listing Your DC Metro Home For Sale
What are the most important factors in listings and selling your DC home? Here are the three most critical decisions you’ll make:
1. The first of the three critical factors in listing your DC home is Days On Market. Sellers have two main goals:
- Sell quickly
- Sell at the best price.
Fortunately, these goals go hand in hand.
The graph above illustrates the relationship between Days On Market and Sales Price in Washington DC from February 2012 to July 2012. During this 6 month period:
- Homes sold during the first 10 days of listing typically sold over list price.
- Selling within 20 days nets 98-100% of the listing price.
- 60 days averages 95% of list price.
- Beyond 60 days, prices continue to drop, to 75% below list or more.
For example: If a condo with market value of approximately $400,000. is priced accordingly and sells within 10 days, the closing price is likely to be around $408,000. Statistics show that if the unit sells in 20 days, the final price lowers to approximately $396,000. At 60 days, the price lowers again to roughly $380,000. And so on.
If a property hasn’t sold within 30 days, it’s safe to assume that it was listed too high.
2. The second of the Three Critical Factors in Listing Your DC Home is Competitive Sales Analysis.
When appraisers price a house they use comparable houses that sold no more than three months prior, within a one -mile radius. They also factor in square footage, number of bedrooms/bathrooms, and the age of the structure. Unfortunately, finishes and upgrades don’t count much with appraisers.
Buyers do care about finishes and upgrades… they just don’t want to pay for them. The biggest gains in value are realized in the most important rooms of the home; the kitchen, baths and basements. Keep in mind that upgrades decline in value with age and taste is subjective. The bathroom tile you adored at install may make your buyer want to reach for a sledgehammer tomorrow. The “new” flooring you just finished paying off may already seem worn and dated to buyers.
Taking all this and many more points into careful consideration, your listing agent will be able to provide a Competitive Market Analysis (CMA) which should guide you to a realistic price.
Remember, real estate agents don’t set home values—the market does.
- Answer the question : “Who is my Buyer?”
Have you ever visited a store and made an immediate connection with something? The perfect pair of shoes, briefcase, or sofa? It just says, “This is me!” and “This will make my life better!” That’s exactly the reaction you want your buyer to have when they walk in to your home. Someone who makes that special connection to your house will be willing to spend more than someone who thinks adjustments will need to be made.
3. The third of the Three Critical Factors in Listing Your DC Home is knowing your buyer.
Obviously, your home can’t be all things to all people. That’s why it’s important to determine your area, neighborhood and house type demographic. Answer the question “Who’s my buyer?” and tailor your home presentation to them.
Thanks for reading Three Critical Factors in Listing Your DC Home. If you’d like a CMA for your property, or you’d like to meet for a consultation, contact us. We’re happy to help.
The Metrohagents Team is the listing division of The Isaacs Team, Coldwell Banker Dupont DC
Check out our listing website, www.metrohagents.com for great listing information and tips!