What are the four things that determine your home’s list price? Here are the factors we look at when working with sellers to decide if it makes sense for them to put their home on the market:
1. The current inventory in your metro area. How many homes are available for sale? This is indicative of many things, but it clearly has a lot to do with your competition. The more homes that are available on the market, the greater the supply. The fewer homes available on the market, the lesser the supply. If there’s less supply but sturdy demand, we’re in a seller’s market. If there’s greater supply but a flatlining demand, we’re in a buyer’s market.
2. The average days on market in your neighborhood. What’s the average length of time from when a home is listed to when it sells? This number will give you an idea of how long it may take for your home to sell. It will also give you and your agent a target to beat in terms of selling it for the highest dollar amount possible with the least amount of hassle.
3. The number of active listings in your neighborhood. What’s the active listing count in your neighborhood? Knowing what this number is specifically in your neighborhood gives us a glimpse of your most direct competition—the homes most similar to yours.
4. How your home compares to the other listings that are out there. Is it move-in ready? If so, you might be able to squeeze a few more dollars out of its sale than your competition can. If the situation is reversed and your home needs some repairs or upgrades, how will you price it given the fact that the buyer will have to come in and invest money into it?
There are other things that determine your home’s list price as well, and we’d love to discuss all of them with you if you’re considering selling your property. There’s a lot happening in our market that can affect your list price, so you should only work with an agent who is experienced.
If you have any questions, please feel free to reach to us. I hope to hear from you soon!