When deciding for the appropriate listing price for your house, a Comparable Market Analysis (CMA) is a helpful tool in giving you an idea of how much buyers paid for a property similar to yours. But that's not the only thing that you need to know. Apart from CMA, it is also vital to know where your home stands in the market or its attractiveness, and you can find that out by getting an overview of the neighborhood's current market conditions, Realty Times reports.
In order to price your home correctly so it sells quickly and at the best possible price, it is important for you to predict how the current crop of buyers is seeing the market. The goal is a quick sale.
By pricing your home right, you will attract a bumper of buyers who are likely to make an offer. When you price your property too high, buyers will find that you are just testing the waters and they know too well that such sellers are going to be difficult with negotiations.
What exactly do you need to know? You have to figure out and decide on the market you are in. Market conditions are dictated by buyer's attitudes and either boosted or dragged down by jobs, income, mortgage rate, and overall consumer confidence.
It's not impossible for your community to be experiencing a buyer and seller's market at the same time. For instance, while your neighborhood is raging hot, the community a mile away is frozen cold.
When talking about a seller's market, this is when buyers are confident, listings don't stay long in the market, and a low inventory level of less than six months. This trend usually makes market prices go higher.
In a buyer's market on the other hand, just think the opposite of a seller's market: listings stay long in the market and the inventory levels are high at up to seven months supply. This leads to sellers offering incentives or lower prices.
By analyzing the market condition, you will be able to predict long and short-term trends. When the market is hot, you can price your home slightly higher. When the market is cooling, pricing your home slightly below the market can help attract buyers.
There is one single thing that you absolutely shouldn't do when playing the games of real estate: ignore the market conditions. Work with your agent to make sure that you are updated on market trends as well as getting fresh CMA. This way, you will have an idea of how your property will sell and for how long.