SELL MY HOME FAST -
Step 2 - Know Your Competition
There are ALWAYS homes being bought and sought. Yours could be one of the them. You don't have to wait 4-6 months to sell your home if you understand this one important concept revealed by years of Realtor experience.
If the sales volume (demand) is high and inventory relatively low, you would be experiencing a SELLER's market. When supply is low and demand high, prices appreciate.
Likewise, if sales volume - the number of homes being sold - is relatively low, this increases the number of homes on the market AND the number of days on the market. This is a BUYER's market. If you were a retail store and you had too much inventory on hand, what would you do? You would have a sale. That is what has been going on for the past two years. It's been a buyer's market and EVERYTHING has been - and continues to be - on sale. The buyers who are buying are looking for bargains.
The following graph shows which homes are selling in a BUYER'S MARKET. On the left hand side of the chart shows the relative price of homes compared to home on the market. The bottom line shows the relative condition of the homes on the market.
In a BUYER's market, the homes that are selling are those homes PRICED in the BOTTOM third of homes currently on the market. IN ADDITION, the homes that are selling are those homes in TOP third in condition compared to homes currently on the market. This is represented by the deeper tan section in the chart.
What this means is to get your home sold FAST, you need to price your home so it is in the bottom third AND have it be in the top third in condition compared to other similar homes on the market.
Keep in mind, that real estate is local, the top third and bottom third may actually be a lower percentage. What's actually happening because of the competition is the percentage may be more like 25%, perhaps it may be even lower.
For example, let's say there are 10 homes in similar condition on the market, ranging in price from $160,000 to $185,000. The median priced home (the one in the middle) is priced at $173,000. To get a "ballpark" estimate at what the market price should be set at is to add the lowest priced home with the median priced home, then divide by two. This will give you the price point of a home in the 25%.
So, using the above model, your best chance of having the home sold in the quickest amount of time is to price it between $160,000 and $166,500.
EVERYONE is either consciously or subconsciously looking for the best value for their money. In today's market, MOST buyers are looking for a bargain. If your home is not perceived as being a bargain, it's not going to get shown because there are five others that are perceived as being a bargain.
So, you know your home is worth everybit of $173,000 based upon what your neighbor said the neighbor down the street got for his home a year ago and you have a Florida room (bad idea) and maybe, from the price you got off Zillow (another bad idea).
Do you see, if buyers are buying similar homes in the $160-166,000 range, at $173,000, you are priced 5-8% too high. It's not going to get shown.
But, you have a pricing strategy. You will start at a higher price and negotiate down. Sounds good and it worked okay in a SELLERs market with prices appreciating. Doesn't work so good in BUYER's market with prices depreciating.
The end result is your home sits for 30 days...maybe 45 days until you decide maybe you'll lower the price to $169,000. If you're not working with a professional Realtor, like myself, who understands which homes are selling and which ones aren't AND why, even with this price adjustment, you will still be out of the market! More frustration on the way!
You can avoid all this by calling me or emailing me - Mr. Good Deal - for a MARKET and PRICING Evaluation.
Next Step to Selling Your Home Fast: Stage it Right
P.S. I hope you find this tip helpful and will assure you that by hiring me to be your Realtor that you have someone you can trust and who will work hard to get your home sold in your timeframe, for the most money and with the least amount of hassle on your part. Call or email me to arrange a confidential meeting.
