Knowing current real estate market conditions can help homeowners through what is becoming a conundrum for some sellers. With a purchase date between 2005 and 2007 (even back to 2002 in some cases), some sellers may owe more than the current market will bear, want to avoid a short sale, yet need to sell.
Sheridan and Thomas are aware that they may be in just this scenario. We are meeting regularly to lay out a strategy. In our first consultation we went over the total market overview and then did a tour of their house to list repairs that need to be addressed prior to marketing the property. We then met about 3 months later and did a quick review of the total market overview, talked about the projects that were completed and addressed the projects that still need to be done.
Over the Thanksgiving holiday we had another consultation precipitated by new activity in their subdivision. We wanted to discuss the possibility of putting their home on the market over the holidays and piggyback onto the activity created by the new listings.
Our first step was looking at the homes for sale, under contract and sold in their subdivision. We looked at the price per square foot, the amenities, garages, updates, etc. We scrutinized the pictures. We guestimated our price point.
Then we looked at the total market overview in 2 price points. For example, in the $300,000 to $349,999 there are currently 160 homes on the market in St Louis County vs 142 in the higher price range. So there is less competition in the higher price range but less homes under contract and, a good thing, less days on the market. Looking at the months of inventory (absorption rate), it is actually a sellers market in the $300000-349,999 market with a 3.72 (months it would take to sell all of the homes currently listed).
This in depth analysis sent us back to look more closely at the homes that had sold in the last six months in our specific market place/location. We looked at all of the amenities, item by item, in the homes that most closely resembled our home. We took a picture of the kitchen in our home, looked at it on the ipad to see what it would look like online. Whoa, Sheridan said, "What can we do?" Umm, the kitchen needs a plan with a strict budget.
We then looked at the days on market to set our expectations. Another statistic we reviewed was the ten year history of homes sales, month by month, in St Louis County. This helped us in determining a pattern and expectations.
This may seem tedious and time consuming but it is definitely the most important step to achieving a successful sale. Knowing the current market real estate market conditions helped Thomas and Sheridan make their decision to wait.
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