Tuesday, February 26, 2013 / by Ira Miskin
It was not that long ago that anyone with or without a real estate license could sell a home. For Sale By Owner (FSBO) companies that offered tools and listing placements with a menu of fees sprang up and flourished. Price was not much of an impediment to selling. Comparisons to your neighbor’s home that recently sold were thought of by Sellers as: “How much more can we get than my neighbor did?” Knowing what the home down the street sold for, and the home around the corner as well, were simply benchmarks for the next round of price increases.
In East Cobb, as prices continued to escalate with no apparent ceiling in sight, more and more buyers flooded into the market with dreams of striking gold in residential real estate. Then came October 2008, and it all came to a screeching halt. The so-called housing bubble burst, and with it the hopes and financial dreams of homeowners who became trapped in properties that were depreciating daily.
The residential housing market in East Cobb has stabilized, and in some areas even appreciated. But understanding just where your home fits into today’s very different housing market takes accurate research and smart market analysis. Too often, home sellers over price their homes when listing for sale hoping a buyer that will “fall in love” and pay over the market value. Just as important, is not undervaluing your home by failing to understand the more subtle strategies for getting a home sold quickly, at full market value and with the least amount of stress and hassle.
The start of the home selling process in this (or any market) is to hire a Realtor with a full team of experts backing him or her up with resources offering the best research, marketing programs negotiating strategies and support systems. And their first step must be a complete Competitive Market Analysis accompanied by a thorough In-Home Evaluation.
How does your home compare in age, style, size, location and condition to homes that have recently sold on your street and in your community? What are the price trends and statistics for homes sold recently… last year… the month you purchased the home… at the time of the top market prices and sales? What is the competition like now? How many homes similar to yours are currently for sale? What share of the market do homes like yours in your price range and location appeal to?
These as well as a list of additional research comparisons and historical benchmarks need to be compared and analyzed to create a pricing strategy. And then it’s time to look at your home from the buyer’s perspective.
Does the home’s appeal, price and the marketing plan brilliantly reflect the benefits of your home? Is there market affirmation of your home’s value that appeals to wary buyers in a tough buyer’s market? Is the price and marketing appeal rewarding you with showings and offers?
For all this to happen, a complete and vivid story about your home that reflects its true market value has to begin with the market analysis and in-home evaluation. Great market research from a Realtor and support team with the research tools, marketing expertise and technology to back it all up, leads to faster sales at higher prices with less stress and hassle for you.