Important Statistics for Sellers:
I'm wanting to sell my house. How can I get better educated on what type of statistics I need to review before selling? What statistics do I need to evaluate when selling my home?
1. What is the current average time on market for my area?
This is important because you need to be aware as to how long it
will probably take to sell the home. The hard part about the
average time on market is that a lot of homes that sell end up
selling within 30 days because they are priced perfectly. Then
you have homes that sit without much activity for 330 days because
they are not priced well. So the average time on market is
really misleading because it accounts for all those homes that were
overpriced for so long before they ended up lowering the price and
selling. Look at the average time on market as just a gauge
for demand in a particular area.
2. What is the average sales price for my area? What about
the median sales price? This is important because every
area is different. If you live in an area that has really
large and expensive homes and your home is half the size and in a
small pocket not representative of the area than the average sales
price and median sales price would not be a very good measure as to
what your home is worth. It would reflect a lot higher than
what your home is actually worth. In many cases though the
average sales price and median sales price confirm what very
accurately what the market it doing around your home and what your
home could be worth too.
3. Of the homes that actually closed last month what was their
average time on market? The average time on market is very
important because it will tell you how long it will take to sell
your home. You need to be able to get an idea as to the
estimated time involved in a real estate sale. It is very
tough for sellers to always have their home in shape and looking
good. If the average time on market is 5 months then a seller
needs to be mentally ready for tougher times ahead. Sometimes
sellers lose thousands of dollars in a sale because they lose
patience and cannot stand always keeping the home "sale ready".
When an offer comes along they just accept instead of allowing the
agent to maximize their profits. Sellers need to be prepared
for how long it should take to sell their home. Also in weird
markets the average time on market is not a very good measure as to
the time it will take to sell their home. For example, in a
declining market homes will stay on the market for a very long time
because as the home is be sold the prices decline and the sellers
many times will not continue dropping the price with the home.
Then you have the other side of the coin where sellers understand
the declining market and price their home 5%-10% below the market to
adjust for a future decline providing value initially and the home
sellers right away. Well if you have 100 homes and 50 of them
take 12 months to sell and then the other 50 take 1 month to sell
then the average time on market is 6 months. This is not a
very good measure as to what the average time on market will be for
your home sale because it depends on what the sellers' goals are and
what they are wanting and able to do.
4. What percentage of these closed homes were bank owned, short
sales or other distressed type properties? This is
important information because you need to understand who you are
competing with. If there is a mass quantity of homes available
and there are a very high percentage of distressed properties than
you will have to price your along the same line price points as
those distressed homes to give your home a chance to sell. If
in your area there are a low percentage of distressed homes than you
should price your home in line with the normal non-distressed home
prices. There are many factors involved when it comes to
selling your home. You need to have an agent who understands
your market and can get the job done.
5. What is the difference between the asking price and the
selling price for the last two months of closed sales?
This is information is important to know because the seller needs to
understand what kind of offers people will be writing on their home.
If there is a mass quantity of inventory and demand is slow than
there should be a large gap between the asking price and selling
price of closed sales. When demand is high and inventory is
low than the gap should be very small. Sellers need to be
prepared as to what the market is like and what people might offer
for their home. This information is crucial to the sellers
bottom line and may completely change the sellers mind as to if they
should sell their home in the first place.
Please provide me with the latest market condition report for the
Portland Greater Metropolitan Area. I understand that on this
report it will have all the current statistics broken down by area.
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