Pricing Your Home
PRICING YOUR HOME REQUIRES KNOWLEDGE & EXPERIENCE
Knowing the current market environment is critical in order to sell your home for the best possible price, there are several factors to consider:
TIME OF YEAR
In Texas, the spring and summer are typically the hottest markets to sell a home. The weather is warming up, school is coming to an end, and families take the summer break to get moved and settled before the new school year. In the fall, many buyers with school-aged kids have likely found a home, so the market decline is no surprise. Combine the new school year with the start of the busy holiday season, and homebuying goes on the back burner during the latter part of the year. Just like in the warmer months, the weather plays a factor in the winter months, too. As the days get dark earlier and temperatures drop, people tend to stay close to home. This means less foot traffic for sellers.
SUPPLY
It’s simple supply and demand. When there are more buyers than home inventory for sale, houses will get multiple offers and higher sales prices than if there are lots of homes for sale and fewer buyers. Even if inventory is low in the area, some neighborhoods may have a lot of competition to sell, making it harder for you to get the price you want. The more desirable of a neighborhood and lower the inventory, the higher home values rise. Interest rates can also impact demand. When interest rates are low, homes become more affordable; therefore, more buyers enter the market than when interest rates are rising.
READY TO PUT YOUR HOUSE ON THE MARKET?
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Consult with me, your local real estate agent, to ensure your house is priced competitively and well-staged. While there are always three factors to getting a home sold...
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location
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price
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condition
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...only two are within your control: price and condition. Of the two, price is more significant. Remember that price will correct bad condition, but condition will never overcome a bad price.
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At the home consultation, I will provide you with a CMA (Comparative Market Analysis). This report can be one of the most important tools in determining the list price. We will review the CMA together so you understand the current market in your neighborhood. Studying the past sales and property improvements will help us develop a pricing strategy. Remember, the listing price of a similar home is your competition, not a comparable for value. Active listings have not sold.
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The CMA report usually contains:
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Active listings in your area with a similar home; age of construction, number of beds, baths, and square footage.
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Sold listings are homes that have sold within the last 3-6 months, plus pending sales that are likely to close by the time your home is sold.
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Off-Market or expired listings. These are properties that were taken off the market for any reason.
Content by Tracie Martin Houston Realtor