As this past summer home selling season was sluggish, would-be homebuyers are more finicky on choosing the right home at the right price.
Despite a strong economy roaring us back into prosperity and a jobless rate at it’s lowest since 1969, the existing and new home sales market, which generally have been congruent with economic performance, have stalled. Characterized by an oversupply of homes and a rise in mortgage interest rates, existing home sales fell by 1.5% in August, according to the National Association of Realtors. Additionally, permits for new single-family homes declined 6.1%. And with the Fed poised to pump the brakes on the economy by conceivably raising interest rates along the threat of rising tariffs, lackluster results of this past August might be indicative of the norm for the foreseeable future.
This begs the question for a home seller who is seriously interested in selling — what will get many qualified buyers to offer the highest price possible for your property? The answer is simple, and perhaps complex. Access to the right market statistics to price your home correctly.
The days of relying on Zillow’s automated valuation model, or Realtors that are willing to take a listing for any price are going the way of the dodo bird. Nowadays with the millennial generation having more information at their fingertips, determining the right prices is predicated not just on recent home sales, but also on things like what is currently listed, the overall local market trend and determining the most likely buyer candidate. Pricing a home has become more of a science and less subjective.
Active, sold and even expired listings are easily quantifiable. But how exactly do you attractively price a home based on the most likely buyer candidates? One way may be to examine how they purchased. For example, a neighborhood yielding a high amount of recent sales using FHA financing, which allows for less down payment, may not warrant such an aggressive home asking price; a buyer who finances more pays more of a monthly nut. Another way of identifying the most likely buyers are identifying the most prevalent home features of sold homes. Using my market (in The Bronx, NY) as an example, having a garage and driveway carry less importance in some neighborhoods that are more reliant on the subway commute than in areas where homeowners own vehicles. There are many home amenities that can be relevant either way depending on a given market.
If you go it alone, the free sites (Zillow, Trulia, Realtor.com) may offer you some of the things that empower you to make the right home selling moves. Even though your local Realtor will have access to the MLS, there is now a high amount of homes that are on the market for longer than 90 days with no sale and an even higher amount that expire and just go unsold. That’s to a large degree an impression on the Realtor. Whether or not you choose a professional to assist you with your home sale, I recommend having that professional talk to you about their experience with these factors and more. It can save you the frustration of failing to sell your home. Remember, as a home seller the objective is to swiftly sell your home for the highest price possible.
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