Before putting a home on the market, there is usually some time spent on researching the current real estate market in order to arrive at an appropriate asking price. Recent sales are examined and competitive properties are evaluated to see how much of a threat they pose for a buyer’s attention. After the house is on the market and the asking price is set, however, market data is too often ignored until an offer is made by a buyer.
I believe a prudent seller should stay in touch with changing developments in the marketplace. Some of these changes could have a major impact on the ability of a property to be sold in the foreseeable future.
Here are some things to watch:
Competing Homes Nearby
The most important factors to consider are similar homes now competing for your buyer. How is your home positioned when compared with them? Have any of them had a price reduction? Have any sold and, if so, for how much? Are there any new listings that have just come on the market that are direct competition with you? Also, have any listings expired because they were overpriced? Your home may have been very competitive when you listed it, but it may no longer attract buyers because other homes are now a better buy.
The Local Economy
The real estate market is not the only thing that changes regularly. Is your local economy hot or cold or lukewarm? Is buyer confidence up or are buyers staying away until things look better? A buyer who is confident of his or her future usually offers more than someone who is interested in buying only if they can get a steal.
Interest Rates
Are interest rates rising, falling, or remaining steady? The worst time to have your home on the market when rates are falling; most people like to wait until rates have hit bottom before making a decision to buy.
Advice: Always list your home with a Realtor®. They are aware of the factors listed above and their knowledge and expertise can help you get top dollar.
