Busting the Myth of Selling in Winter Months

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Many sellers are unsure whether or not to wait until next spring before listing their home. The confusion comes with a combination of age-old schools of thought that predict the spring season as being almost the only season for homes to sell successfully. Not true.

A lot of homeowners are under the impression that homes are not selling at all, whereas in our own experience, time and again we continue to see complete opposite results. So much so, that we are defying the myths of never ending days on market statistics with many properties going under contract in approximately two weeks. Here’s why.

There are so many buyers in the marketplace right now that are eager to lock in the phenomenal interest rates and market conditions that continue to allow a very significant amount of buying power. The interesting thing is that while it is a strong buyers’ market in that sense, sellers are still enjoying an edge with the lower inventory that comes with it being this time of year.

Regardless of which side of the fence you are on, either way you look at it the market is strong. People are out there buying. If there are fewer homes available on the market, then that only means that there is less selling competition. This of course translates to top dollar and incredibly quick, hassle-free transactions in which everyone comes out a smiling winner.

So to answer one of the most frequently asked questions I am getting these days, it IS a great time to sell your home. Sure, you could wait till spring. But keep in mind that so will countless other sellers and by the time springtime blooms are back out, so will equally as many more “for sale” signs, competing with you.

By listing your home now, you can harness the power of the buyers that are striving to find that perfect property before the holidays kick in.

Contact us today if you’d like a custom, home valuation report detailing exactly what we expect your home will sell for in today’s marketplace. Our team looks forward to hearing from you and helping your real estate goals come to fruition.

What is D.O.M. and Why is it Important?

 

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Generally speaking, the longer a home is on the market, the more willing a seller is to negotiate. And that means you might be able to get a good deal!

However, notice that I said “generally speaking.” I put in that disclaimer because there are several reasons a home might be on the market for a long time.

One is that it might simply be overpriced. If that’s the case, then you’re in an excellent position to negotiate since the sellers may be anxious to sell the home.

A second reason may be someone has already put an offer on the property, but their financing, credit rating, etc. hasn’t met the requirements of the deal. In short, there was something wrong with the buyers, and nothing wrong with the home. Again, there may be an opportunity for you in this situation.

A third reason is that someone made a simple mistake in the Multiple Listing Service (MLS)! Perhaps the home got listed in the wrong ZIP code or the wrong neighborhood, or the price was simply wrong and listed too high. Now, normally, MLS is very accurate, but, as always, it’s dependent on humans entering information into the system, so mistakes happen!

Fourth, the house may have stayed on the market for so long because the owners simply refuse to negotiate! A real estate agent can help you identify these individuals for you so you don’t waste time and energy on a sale that will never happen.

Finally, a home may stay on the market for a long time because there is something wrong with it either structurally or cosmetically or both!

Depending on the situation, this can also be an opportunity for you as a buyer! You can use it as a bargaining tool; that is, either the home seller fixes the defects or lowers the price to account for the cost of repairing those defects.

However, you should always, always get a home inspection done on such houses! (Or on any house you’re considering, for that matter!). It prevents you from buying a “money pit,” in which you have to throw a small fortune in order to get defects repaired.

Here’s the short and long of it: DOM can sometimes get you a great value in a home; however, you need the expertise and guidance of an experienced real estate agent to pinpoint such values! I can provide you with that expertise. Contact me today!

Three Ways to Determine Home Value

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One thing that remains sort of a mystery to many homeowners is who determines the value of their home and how it is done. Today, I am going to erase that mystery and tell you exactly what you need to know.

Consider this: a home is much like a commodity. Its pricing is not determined by anything other than what the fair market values the home to be. In other words, what will buyers pay for your property? Contrary to popular belief, factors that do not have any on the value of your home include 1. What you may have paid for it, 2. What you need in terms of value or 3. What the neighbors sold their home for. Well, the third point may be somewhat true (see point #3 below).

The way the housing industry does determine the fair market value of a property is through one of the following three things. 

Assessed Value As Deemed by the Local Municipality

This is the figure that comes to you each year from the Board of Review or County Treasurer’s office. Also called the State Equalized Value (or SEV), this number is often not aligned with the fair market value because it is capped at a 5% increase in most states. Furthermore, each time a home is conveyed to another owner, the SEV and Taxable Values become the same.

Appraiser’s Value Determined by a Licensed Appraiser

A huge part of purchase transactions, appraisals are reports that are formally prepared by professionals that are licensed in the field. They can be determined in one of three ways and depending on the appraiser performing the task, the valuation can vary significantly.

Market Value Arrived Through a Competitive Market Analysis

For consumers, the best way to know their home’s value is through a Competitive Market Analysis. The CMA, also called a Comparative Market Analysis, is a report compiled typically by a licensed real estate agent and it comprises of other like kind homes that sold in the last 6 months to a year. The key is that these properties reflect current buying trends.

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We know that if you’re looking to sell your home, making sure it is priced competitively is absolutely critical in the market these days. A home that is well priced will not only sell quicker but is also more likely to sell for top dollar as compared to over (and under) priced homes. If you would like a custom home valuation report on your property, call us today! We will be happy to provide you with an accurate estimate of what your home will sell for in today’s marketplace.