Good Times For Sellers When the Price is Right and Days on Market Are Low
Every Seller is interested in getting the highest possible price for the sale of their Ann Arbor area home. When the price is right, everyone is a winner. There are many buyers qualified to purchase right now. Overpricing your home can cause the opposite reaction and cost you money and time in the end. When listing your home be pro-active. List your home as close to market value and get your home sold at the highest possible price in the shortest amount of time. You should, also, consider whether the market timing is right for potential buyers looking for a home just like yours.
When a property is priced correctly from the beginning it creates a sense of urgency. A Seller will benefit, right off the bat, from serious Buyers that have been looking, and from Buyers just beginning their home search. Buyers are waiting daily for new homes to come on the market. If the home you have listed is not selling (especially after 8-10 showings on average) in a market with low inventory, the property may be priced too high. So, take the time to review the price of your home. With inventory low, a home priced correctly, and in great condition will often bring in multiple offers, and offers over the asking price.
Overpricing your home will leave out qualified Buyers. Buyers will not look at your home as a possible choice because the home was listed out of their price range. You have just missed an opportunity because the price was too high. If you do end up dropping the price of your home after a month or two, often the price drop will need to be very significant in order to drum up more Buyer enthusiasm for your home.
Days on Market (DOM) will be considered when a Buyer writes an offer. The longer the property is on the market, due to overpricing, the Seller gets fewer showings and Buyers are more likely to negotiate a lower price. This puts the Buyer in the driver’s seat. Buyers will seize this opportunity and find every reason to offer much less for the home.
According to the National Association of REALTORS a post published by Walter Molony – “The median time on market for all homes was 62 days in February, down from 67 days in January and 74 days on market in February 2013. Short sales were on the market for a median of 94 days in February, while foreclosures typically sold in 60 days and non-distressed homes took 61 days. Thirty-four percent of homes sold in February were on the market for less than a month.” February Existing Home Sales Remain Subdued
Take the time to look at homes that are Pending as well as Closed and Active. Look at Pended homes; homes that have already taken an offer and have not closed. Then look at the DOM as a reference. Especially homes that have the same approximate square footage, condition and style in your neighborhood. Ask yourself, are they selling quickly?
Think early on about the Appraisal. This is very important to consider. Most Sellers are seeking a mortgage and an appraisal will be done on the property value. Recent comparable properties will be selected by the Appraiser and a value will be determined based on sold properties and other factors. Again, pricing the property correctly and not over pricing, from the beginning, will go a long way in assuring a successful closing.
In conclusion, when you begin interviewing a REALTOR to list your home, select a REALTOR that knows Ann Arbor area market statistics, the home values in your area, and a REALTOR with a strong marketing strategy that will create the most demand to get your home SOLD for the highest price in the least amount of time. Select the Toth Team. Find out what your home is worth.