Thinking of Selling Your Home??

If you've been thinking of selling your home, it's important to understand the market conditions and what everything means!  There's a lot of lingo that REALTORS® use and sometimes it can be a little overwhelming.  For an optimal selling price, check here, or give me a call and I can show you the current market trends and conditions! 910.545.0450

Buyer's Market vs Seller's Market

A “Buyer’s Market” is characterized by a period of oversupply and falling prices. Oversupply means there are many substitutes, so many sellers are chasing only a few buyers. Falling prices means there is no urgency for buyers. During a Buyer’s Market, the buyer holds the power and can negotiate from a position of strength.

A “Seller’s Market” is characterized by a period of undersupply and rising prices. When supply is short there are more potential buyers than there are properties for sale. This forces prices up and gives power back to the sellers. Sellers can hold out and ask for full list price.

What do the "Comps" look like?

“Comps” are properties that are comparable to each other – substitutes.  Brokers can create a Comparative Market Analysis (CMA) that compares properties that have sold recently that are similar to your home.

When selling it is important to always factor the comps into your decision making process. Comps will show you approximately what price to list your home for sale.

Always consider Active, Pending and Sold properties. Active listings are those that are currently listed on the market for sale. Pending sales are those which are under contract to close. Sold properties are those which have closed escrow and are now possessed by the new owner. These three types represent various stages of a real estate transaction (start to finish) so they can give you a gauge of where pricing is possibly moving.

How many “Days on Market” have the properties been listed for? If properties have been listed for an average of several months or years it means they have been difficult to sell. If properties are selling with only 30-120 Days on Market it means they selling relatively quickly. Days on Market are a good gauge of demand within a given market.

Sometimes foreclosure sales and short sales have to be included in the comps.  Which can alter the days on market, demand and of course value.  That's when I would incorporate other tools and factors to determine a fair market value and optimum selling price for a homeowner.  Analyzing the market is different than providing a CMA, so it's in the homeowner's best interest to work with a REALTOR® that really understands the market.  For more information on selling your home, give me a call 910.545.0450!  I'd love to help!