Price your Home Correctly to Sell To those of you who own a home, you probably realize that your home is special to you. For most people, even when it comes time to sell a home for whatever reason, they can think of many reasons why their home is worth more than their neighbor’s home. You may be moving because your home is becoming too small for your family, or maybe it is getting too big as your children grow older and move out. Maybe you feel it is time to move up to a nicer home, or maybe you need to move for a different reason like a job transfer. Whatever is the reason for selling your home, you most likely have it customized to your own likes and needs. So when it comes time to put a price tag on it, many people believe the value of their present home to be much higher than it really is.
When you price your home, you need to compare homes similar to yours that sold recently in your neighborhood. This can be hard for many people to do accurately on their own. Neighbors sometimes do not report accurately to you what their home really sold for. Or you may just be remembering what the home listed for instead of the real selling price. Then people tend to put the actual cost of upgrades they had done on the home on top of the sold price of their neighbor’s home. In actuality, the value is not going to be dollar for dollar when it comes time to sell. Then your favorite color for your walls and carpet may not be as attractive to many buyers as it is to you. For these reasons, you need to seek the help of a professional and listen to their advice. The statistics I will show you here will prove why this is so important. These statistics also show that too many people are still pricing their homes too far above market value.
How are the sales so far in 2010 compared to 2009? Let’s take a look…
We are still in a Buyer’s Market, which means we have more supply of homes on the market than we have buyers. All statistics below are for Single Family Residential Homes on the Westbank only, and are compiled from actual figures provided by the New Orleans MLS (Multiple Listing System) used by the Realtor Association in our area:
Above shows that on the Westbank, 10% less homes sold so far this year compared to the same time period last year. The Average Price of homes on the Westbank for all of 2009 was $156,235 while the year to date Average for 2010 is slightly lower at $151,841 (2.8% lower).
But look at the Average Listed Prices - The overall Average List Price of All listed Homes are much higher than the Average List Price of the homes that actually sold!
In 2009, the overall Average Price of Homes Listed was 18% higher than the Average List Price of the Homes that actually Sold. As of the end of April 2010, this amount decreased to 14%.
This next Chart shows How many homes actually sold in both 2009 and 2010 compared to how many listings there are on the market:
When you need to sell your home, you want your home to be in the best possible position for a Sale. This means pricing it correctly for the condition it is in.
The following Chart shows a comparison of Homes Sold in 2009 vs 2010:
The following Chart shows the Average Number of Days on the Market of Homes that Sold and compares 2009 to 2010:
This Chart shows the amount in Inventory of Homes on the Market measured in Months. This is found by dividing the amount of homes we have on the market by the number sold in any given time period. This is called the “Absorption Rate”:
Even though there are a few less sales so far this year compared to last year, overall the amount of inventory we have is very similar. We are also noticing that the amount of time on the market of the Sold Homes is dropping. This shows signs of a slow stabilization of the market.
So if you have a Home to sell, give your Professional Realtor a call to help you determine how to get your home in the best condition you can, set the best price and get it Sold!
To see these charts clearer in a larger scale, visit our website and get a closer look at these statistics and more as we make it available. Click on our weblink below to get to our Website:
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