In our area, the Spring is usually the hottest market to sell a home. It’s warming up, school is almost out, and families prefer to move in the summer before the new school year. The second-best season is the Fall. Summer vacations are over, families are back in a routine, and folks have the time to put into the home buying journey. Summer can also be a pretty good time to market a home in our area. There may be a different type of buyer in the Summer months, those singles or families without the concern for school years. The winter months are usually considered a Buyer’s Market because those that are selling during the holidays are generally highly motivated by life events to sell.
It’s simple supply and demand. If you have more buyers than homes for sale, then houses will get multiple offers and higher sales prices than if there are lots of homes for sale and fewer buyers. Even if inventory is low in the area, some neighborhoods may have a lot of competition to sell, making it harder for you to get the price you want. The more desirable of a neighborhood and lower inventory, the higher home values rise.
In a seller’s market, you may get a little more than a comparable sale, since inventory is limited and buyers are competing for fewer homes. In this market environment, it’s not uncommon to get multiple offers and offers over asking.
A neutral real estate market, means just that… there’s a balance of homes on the market to the number of buyers making offers. In this market, it’s imperative to keep an eye on the comparable homes sold, that the appraiser will use to compare your home to recent sales and make sure your pricing is in line.
In a buyer’s market, where there are a lot of homes competing for the buyers, you may want to strategically price your home according to the competition in your area.
Your Agent will provide you with a CMA (Comparative Market Analysis). This report can be the most important tool in determining the listing price. Review the CMA carefully with your Agent so you understand the current. Studying the past sales will not only help you understand the pricing strategy but give you a realistic expectation as to how much your home might appraise for when you go under contract. Remember, the listing price of a similar home is your competition, not a comparable for value. Active listings have not sold.
Active listings for your area with a similar home; age of construction, number of beds, baths, and square footage.
Sold listings are homes sold within the last three months, plus pending sales that are likely to close by the time your home is sold.
Off-Market or expired listings. These are properties that were taken off the market for any reason.