How different markets affect sales strategies
If you did not take that into account then you will have issues when selling your Livingston County home. An important aspect of pricing is an assessment of the state of the real estate market. The market may favor buyers or sellers, or be in balance. A buyers market means that homes are sitting on the market longer, home prices are falling, and there is a large inventory of homes. You have to be right on the money when pricing your home. The longer a Livingston County home is on the market the more likely that you have to lower the price of the home because home values around it are falling.
Here are the indicators of the type of the market you are in: Count the number of months of standing inventory in your market and price range. Consider your market area to be all neighborhoods that offer competing choices for your potential buyer. Here is how to do that:
- Count the number of sales in your city and price range for the past 12 months.
- Divide the number of sales by 12, to get the number of sales per month (sales rate).
- Count the number of listed homes currently on the market.
- Divide the number of homes on the market by the number of sales per month (sales rate).
This will tell you the number of months it will take to sell the current amount of homes listed.
What is a Seller's Market
If there is less than 6 months of standing inventory it is considered a seller's market. In a seller's market the number of buyers is greater to the number of homes for sale. Low ball offers are laughed at. The demand for homes is greater than the supply. Buyers must compete with each other for the available inventory. There may be multiple offers received shortly after a property goes on the market. There are sometimes lines of buyers waiting to see the home. Buyers have to submit the highest offer possible. Prices will trend upward. In a climbing market, pricing slightly above recent sales is appropriate.What is a Buyer's Market?
If there is more than 6 months of inventory of Livingston County homes, it is considered a buyer's market. In a buyer's market the number of buyers is small in proportion to the number of homes for sale. This situation can be created by a poor economy, high interest rates, employment decline, and excessive building. A low number of buyers equals a lower price. Livingston County home sellers must compete with each other for available buyers. Home prices trend downward. In a falling market, prices should be set at the lower end of the range, because time works against you. In six months prices most likely be lower. This may make selling harder, especially if your home was purchased at a higher price. -
How do you compare Livingston County Homes - Price Per Square Foot
Price per square foot is used by home buyers as tool for comparing homes of varying sizes to determine a list price. When price per square foot is used, it is important to keep in mind that you must make a sliding scale adjustment from larger to smaller homes. In other words, the larger the house, the lower the price per square foot for comparable homes. Ranch homes fetch a higher price per square foot. For example, the price per square foot on a 1,200 sf home will be much higher than a 3,000 sf home, with other things being equal. But on the opposite end high end homes get higher price per square foot because of the great amenities they have.Should you price high, and hope for an offer? Price it right from the beginning
Houses should not be priced over the market. This is not the best way to position your home for several reasons: - Your home will be shown to the wrong group of buyers, from whom you need an aggressive negotiator - because someone who eventually make a low offer.
- You will help to sell the competition by pricing it too high. Your high price will convince buyers that another home is a good value.
- Your homes days on the market is available to all home buyers, and is a subtle but important factor in their decisions. Your best opportunity to sell your home occurs during the early days of listing.
How do you know if your listing price is correct?
The best affirmation of correct pricing is an offer from a home buyer. This indicates that your Livingston County home appeals to buyers in your price range. There may be a few nibbles, and second looks before a buyer comes forward who is ready to act. It helps to get feedback from the buyers agent and potential buyers. Keep in mind that they will often be reluctant to say negative things. I always say the best feedback is an offer. The summary of feedback is more important than what they say. Are you getting feedback or are you getting second looks?How do you know if your listing price is incorrect?
You may have steady showings, but no offers. This indicates that are buyers, but they have other home choices with lower prices or more amenities. Or, you may have very few showings. This will require you lower your price to be competitive against homes in nicer amenities and in better condition. Remember that even if there is a small buyer pool you can still sell your home.How long should you market a home at a given price?
There is no set time limit for trying to sell your home at a set price. I think about 8-10 showings is a reasonable number for feedback regarding the price. This usually corresponds to about 2 - 4 weeks for an average home in a balanced market. About 30 days marketing time for a given price could be good a rule of thumb. However, this may be too short for your home if you have an unusual or very high end home for which there is a small market. Or, 30 days may be too long for your home if you need to move fast.What happens if your Livingston county home does not sell in a reasonable time?
If your home has been on the market for months with no offers, you have been given a clear message that the price is set too high. This is particularly true if showings have slowed down and there are few prospects coming to see it. What you do at this point depends on whether you really need to sell. If you're not really motivated to move soon, you can always wait for the market to catch up to the price you want. It would be best to take your home off the market and wait for better conditions. Buyers become suspicious of a house that's been for sale for a long time. If you need to sell, consider a schedule for dropping your price until it reaches a level that attracts buyers. There's no reason to say, We simply can't sell our house. All houses will sell if the price is right.How can you get top dollar for your home?
Although buyers will not pay more than market value, they will pay a premium for homes that are in excellent condition and well presented. With good condition and presentation, you can reach the high end of the price range achievable for your house. We will work with you to "create value" before your house goes on the market. When it goes on the market, we will make sure that your home is show beautifully to a wide audience.Check out Oakland County lakes by size for a quicker search.
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