Residential Market Area Data
(FMLS areas 13,14,61,62,81,82,83,121,131)
| 2001 | 2002 | 2003 | 2004 | |
| Number of Listing during the period | 19,076 | 22,330 | 23,141 | 22,586 |
| Average List Price | $334,460 | $343,944 | $352,952 | $376,635 |
| Completed Sales during the period | 11,370 | 11,382 | 11,827 | 11,967 |
| Average Sales Price | $267,364 | $297,663 | $309,310 | $325,861 |
| Sales Price as % of Listing Price | 97.9% | 97.3% | 97.2% | 97.6% |
If you have 2.6 children in your family and you need a home with 4.37 bedrooms; then these statistics may be very important to you. Your next question is what value does this data provide?
First, it proves the trend that selling prices are continuing to rise. Second, it shows that there are many homes available for sale. Finally, it demonstrates that about 60%-65% of the homes listed do sell. What is happening to the other 35%-40% of the homes listed? Simply stated, they do not sell because they were not marketed or desirable to Buyers at the price or terms offered.
WITH SPECIFIC MARKET ANALYSIS FOR YOUR HOME
What is your home worth? It is worth different amounts to different groups. To the local authorities, your home is worth its assessed value for tax purposes. To your mortgage company, your home is worth your mortgage balance and or the ongoing payment of principle and interest. To your insurance carrier, your home is worth your continuing insurance premium less the cost of replacement times the risk of replacement. To you and your family, your home is worth what it would cost to obtain a similar replacement home in the same condition as yours. In the Real Estate market, your home is worth what a buyer is willing to pay for your home compared to other homes available in the marketplace.
What happens if you price your home high? First, you are very happy because you think you may receive more than expected. This initial positive mood can quickly turn sour and frustrating for you and your entire family; because your high price has excluded your home from several Buyer's searches. Even if you reduce your price after 30 or 45 days, you have lost the opportunity to sell your home when it was fresh on the market; it is now stale and may have a stigma of "there must be something wrong with that home" associated with it. On the other hand, you may be lucky with your high price...People do win the lottery (1 out of 86,000,000).
What happens if you price your home low? It will probably sell quickly, but you may have left some money on the table that you could use for your next home. If timing and a quick sale are important to you, the lower price will work to your benefit. While remote, a lower listing price may result in enough activity to generate multiple Buyers bidding with multiple offers and actually selling for above listing price.
What is the right price for your home? The best way to determine the right listing price is a Comparable Market Analysis (CMA). The Comparable Market Analysis is part science and part art. An evaluation is conducted on A) the subject home, B) homes that have recently sold in the area, C) homes currently listed for sale in the market, and D) overall adjustments for seasonality, your timing requirements, home condition, and general market trends.
For homes that have recently sold, the true net selling price needs to be determined; not the listing price, but the selling price less adjustments, allowances, seller paid closing costs, or seller paid incentives.
For homes that have not sold that will be competing with your home, an accurate estimate of net selling price needs to be determined.
All homes (the subject home, sold homes and available homes for sale) are then compared for location, style, condition, and features to develop an adjusted net sales value allowing for any differences.
After seasonal and local market conditions are added to Seller requirements and the adjusted market analysis; the expected net sales value and marketing time is determined.
The expected net sales value is then adjusted upward in line with the marketing plan to obtain the proposed listing price. i.e. net sales value = $320,000, add seller allowance for carpet $4,000, add seller paid closing costs $6,000, add negotiating room 3% ---> yields ---> a proposed listing price of $340,206 (it is suggested that this value be reduced by $307 to $339,900 so Buyers looking in the price range up to $340,000 will see the home).
You may say this is very straight forward, almost mathematical. The art and skill comes with experience in developing the list of comparable properties; the experience in working with Buyers and understanding what features Buyers think are important; the experience in using the research tools available to REALTORS®; and experience in evaluating the subject home and all of the comparables, to make sure all factors are given proper consideration. i.e.
- A home on a heavy traffic street may require a 10% value adjustment and a 20% penalty in marketing time.
- A home with a cluttered basement may require a 1% value adjustment and a 4% penalty in marketing time.
If you are seriously considering the sale of your home, please use the e-mail link below, we will get back to you to schedule a Comparable Market Analysis for you.
Also, please use the menu at the left to see "What Sellers Need To Know" for tips in preparing your home for sale and a description of the 8 step home selling process.