Determining Your Local Real Estate Market
Watching my parents make the decision to sell our family home made me come to one big realization. The decision to sell a home is far more complex than many people realize. One primary thing that was a driving force for them was the market and how they knew it would benefit the sale of their home
Selling Tips Determining Your Market
In general, people sell their homes for many different reasons. For some, it is involuntary due to life changes such as job transfers, divorce, and death. For others, it is made under less necessary circumstances. If you fall into the later category, learning about your local real estate market is critical.
When determining a market for real estate in a particular area, the central issue is what kind of a market is present? There are two types the sellers market and the buyers market. Each market has particular characteristics and will impact how much time and money will be involved in your selling effort.
A sellers market is one where there are more buyers than properties being listed. It is no secret that the United States has been in one of the hottest sellers markets ever seen for the last seven years, but it is really starting to cool off. This doesn’t mean, however, that the national trend reflects the situation in your particular area. If your area is still red hot, you are in the cat birds seat. You can list your home with a high price for your area and still reasonably expect to get offers.
A buyers market is one where there are more listings than buyers. In such a situation, homes tend to sit on the market for substantial amounts of time. Many parts of the country, such as Texas and Colorado in general, have historically been buyers markets. For some reason, these two states never really benefits from the massive sellers market push the last few years.
Anyway, if you are in a buyers market, you need to determine two things. First, do you have sufficient equity in your home to make selling it at a competitive price a worthwhile decision? Second, would it perhaps be better to wait a few years until the market falls in your favor? Unless there is a compelling reason to sell, many homeowners will wait out buyers markets. If there is a compelling reason, you need to price your home near the bottom of the market for comparable homes in your area to get a quick sale. If it is any comfort, you should be able to turn around and find a good deal in your area as a buyer.
At times, the real estate process can be a confusing one for buyers and sellers. If you take the steps to determine your market before making a specific decision, you will be better off.