Raleigh Real Estate: Why Spring is the Ultimate Time to Sell
Posted by Kim Adamof on Tue, May 04, 2010 @ 09:32 AM
Spring into Action
There's a lot of money at stake when you are selling your house. Your level of motivation will ultimately determine your success or failure at selling your house this spring. For sellers who just want to sell and want a specific price for their house, then they'll probably sit in inventory longer than a seller who needs to sell. Sellers needing to sell could be to avoid a foreclosure and/or might be in a short sale situation, or have a job transfer. There are many reasons to sell your home.
Raleigh Real Estate Supply vs. Demand
When the inventory of unsold homes increases, buyers can take their pick. This is why pricing a home correctly becomes critical. The inventory of short sales and foreclosures have flooded the market, taking sales away from re-sales.
At the end of March 2010, the new homes inventory has decreased while the resales have increased. Since there are no economic reasons for the increasing amount of resale listings, sellers might be trying to sell to avoid a foreclosure or just testing the market.
Pricing it right
Some sellers undervalue their house to get it to sell fast, while some sellers overprice. Predicting what a house will ultimately sell for down to the penny is like looking into a crystal ball and basically guessing. Unfortunately the real estate market isn't as predictable as the stock market, however, there is enough data of surrounding home sales to determine an acceptable range in home value.
"Burton G. Malkiel, an economist, professor at Princeton University, and the author of A Random Walk Down Wall Street, dispelled the myth that individuals are able to predict the future based on historical trends. Unfortunately, when prices decline, sellers often place too much emphasis on how much their home was worth before the market slowed down. Psychologically, sellers have a tough time coming to the realization that their home is worth less, and they cling to the hope of finding a buyer - even if the home is priced out of the market."
Ultimately, it's the buyer who sets the value, not the real estate agent or the appraiser. Forget about what your home was worth in the past, you need to focus on what the market will pay for the home today.
Downside to selling in the springtime is competition. This is when your neighbors also are putting their house on the market.
Ask yourself these questions:
Are you competing against new construction? If so, is your house up-to-date to compete with these homes?
How many houses are you directly competing against?
How many houses are under contract?
How many have sold in the past 3 months? Of the sold houses, what was their list to sell ratio?
This information will be invaluable when you are selecting your list price.
The biggest tip for correctly pricing your house against the competition is to act like a buyer and go check them out. Have your agent take you inside as if you were a buyer and preview the houses that other buyers are also seeing. Walk through open houses. Take notes and compare the features they offer with your home. With this information, you should be able to determine the fair price for your home.
Pros to Spring Selling
If the market is affected seasonally, then price can be affected. Historical data shows spring is the best time to sell in order to get the best price.
After being stuck inside all winter, people just want to get out and take a look at houses. They've been thinking all winter on moving and now they are ready to see what's on the market.
Your neighborhood looks good with the flowers blooming and green grass. Trees are blooming and everything starts to wake up.
If you have been thinking of selling, let one of our agents explain our current real estate market and work with you to determine a fair selling price. With our experience and local knowledge, we'll take the guesswork out of pricing.