Analyze and Observe
Like many things, finding the market value of your home is part art and part science. You can define market value as “the amount a willing seller will accept from a willing buyer”, and that really is always the case. Determining that number in advance, though, requires careful analysis of past sales history of comparable properties, and observation of the very fluid competing market.
Market Corrections Taking Place
If you want to sell your home, the way to get the very most out of it is to price it right from the beginning. We pay close attention to the nuances of a constantly evolving market because that is how we maximize returns for our clients. We are currently observing that many areas in our marketplace are going through some “corrections”, which almost always means price reductions. That means that our pricing of homes is lagging behind buyers current reactions. We see that roughly 80% of homes going under contract right now are doing so in the first 5-10 days, and the ones that stay on longer than that are often requiring a price adjustment before they go pending.
Back on the Market
We are also monitoring how many homes go back on the market after going under contract, and that number is running at about 20%. Although our option type contracts in Texas give buyers an unrestricted right to terminate during a specified period, we find that most of the homes that go back on the market do so because buyers who are obtaining loans to purchase a home are getting appraisals back from their lenders that do not substantiate agreed upon sales prices. Yikes! That means that appraisals, which are based on historical sales data, are not keeping up with prices. It’s a complicated matrix! We have some great strategies to help with this issue, and they primarily have to do with addressing this potential problem up front in the contract itself.
The Power of Positioning
One of the very best tools for finding the right value, that magic number that gets your home under contract in that first window of exposure, is the concept of positioning. To find that, you need to see how many homes similar to yours in price and area (working from the understanding that a buyer doesn’t need to restrict themselves by neighborhood, so a bulls-eye look that factors drive time and schools is the best determiner) are being taken down each month, and how many are in the pool of available homes. That lets you understand where to price in order to meet your timing goals. If you need to sell within two months, and six homes are selling per month; you should position yours with pricing (and condition, always!) to be one of the top ten. Then, you monitor new listings to make sure no new entries are pushing you past your time frame for being someone’s first choice!
Profit from Professional Advice
If you are thinking of selling your home, there is no stronger move you can make than finding a skilled professional Realtor to assist you in pricing and positioning your property to the most advantage. Stanberry’s associates are trained pros with access to tools, advice, and support to serve you best. We enjoy a reputation for excellence for thirty-four years in Central Texas for good reasons!