| |
| My Home Is Worth What? By Jodi Leone, Realtor |  |
As the saying goes "A home is worth what a buyer is willing to pay." Determining the value of a home is a science mixed with some art. In order to determine the current value of a home in the marketplace, one must first know the specific market. Although a Buyers Agent can represent a client anywhere within the state, a good Seller's Agent specialized in specific submarkets or subdivisions. Understanding the "pulse" of the buyer is extremely important. Buyers tell Sellers and future Sellers what they are willing to pay through past data. This data is cataloged and used by REALTORS and appraisers as comparables or comps when calculating the current and future value of a home. In a fast moving Sellers Market, where supply is eclipsed by demand, appreciation must be calculated and factored into the price. In a Buyers Market, a market where supply is much greater than demand, strategies must change. Prices may follow 6 month Sold Comps when the following factors are present: During Belgrade's Real Estate off season (Nov-Jan) Absorption Rate, the time it take the market to absorb current inventory A properties salability and condition Seller's Motivation A large New Construction Inventory in the subject market
Another important factor in the real estate marketplace is Days On the Market (DOM). A refocusing tool for Sellers is knowing how long current listing have been on the market and how long it took sold and pending properties to go under contract. If the average DOM at a price point is 85 days and you hope to be moved altogether in 60 days, you may need to evaluate your pricing objectives. FYI: The DOM ticker for a property stops when the property receives and accepted offer. Realistically, it will take an additional 21-45 days for the property to close escrow. It is important to know current prices in the marketplace in order to know your competition. Sellers regularly make the mistake of using homes on the market to establish their price. Until a Buyer has paid the price and the value has been established, the price is considered an asking price. Remember: "A home is worth what a Buyer is willing to pay." A home properly priced and properly marketed has the best chance of bringing top dollar in the shortest amount of time. Written by Jodi Leone, Realtor If you have and questions or would like to discuss strategies indepth please call me direct at 599-5900 or send me a line at jodi@calljodi.com |
