Understand Market Conditions
The real estate market is in constant flux, not only as a whole but in particular areas as well. Knowing what is going on in the overall and local real estate markets will help you understand how these conditions can affect the sale of your home. The following chart will help give you an overview of the three significant market positions.
Buyers’ Market: The supply of homes on the market exceeds demand.
Characteristics: High inventory of homes. Few buyers compared to availability. Homes usually stay on the market longer. Prices are stable or perhaps dropping.
Implications: Buyers spend more time looking for a home, and when they negotiate, they usually have more leverage.
Sellers’ Market: The number of potential buyers exceeds the supply of homes on the market.
Characteristics: There is a smaller inventory of homes with many buyers. Homes sell quickly. Prices usually increase.
Implications: Prices may be higher or perhaps climbing. Buying decisions must be made quickly. Conditional offers may be rejected.
Balanced Market: The number of homes on the market is roughly equal to the demand.
Characteristics: Demand equals supply. Sellers accept reasonable offers. Homes sell within a reasonable time period. Prices generally remain stable.
Implications: There is less tension among buyers and sellers. There is a reasonable number of homes to choose from.
- Mortgage documents
- Property survey
- Your deed or transfer of title document
- Tax assessment documents
- Utility bills
- Other claims relating to your home
- Pertinent condominium documents (if you live in this type of home)
- Maintenance history (include repair receipts)
- Additional sale enhancing items and information
Determine Your Asking Price
Before you put your home up for sale, you must set the price. And before you can do that, you must know what the house is worth. That doesn’t mean what you paid for it, or how you upgraded it. Determining worth is simply finding out what someone would pay for it.
The steps in determining worth are:
1. Understanding market conditions
2. Getting the details about recent sales in your neighbourhood
I have access to all of this information. Plus, I can objectively see the big picture and tell you what makes your home unique.
Once we have determined you home’s worth, we will determine the asking price. Most often, the price of a home is set slightly higher than its worth, to give a little “bargaining space.” Of course, if it is set too high, it may deter prospective buyers.
If you’re in a rush to sell your home, setting the asking price a little lower than what your home is worth will attract a lot of attention. But beware, if the price sounds too good to be true, buyers may be skeptical. They may even offer less than the asking price anticipating problems with the home down the road.