Now that we are into our third month of the year I thought I would take a look at how we are doing this year so far. This is a look at the first 2 months of the year.
We are significantly ahead of last year so far in total sales, and the median price is slightly higher. Take a look at the chart below:
|Year||Total Sold||Median Price||DOM||Price Change|
Notice that one of the significant differences this year is the price change. This is a measure of the sales price compared to the first offered price. Often, a seller puts his home on the market at a significantly higher price than he ultimately receives or even expects to receive. After he receives no offers he will lower his price until he attracts a buyer, depending on how much above the market price he started at, he might have to come down a lot.
This is not a good strategy and this chart is an illustration of that. The lowest price change of the last four years resulted in the second highest median price and the lowest DOM, or Days On Market. If your initial price is closer to the actual market price you will tend to sell your home faster and for more money.
Sometimes it’s just not possible to know the real market price ahead of time. This is the case with unique properties. If you have a home that is special…it also has a special price. And it just really isn’t possible to know what that price is because there aren’t any good sales comparables. We have to allow the market to show us the price. You do this by putting it on the market with the best information available and then watch buyers responses. If you get no showings you are way to high. If you get a few showings but no one serious, you are a little to high. You need to make price adustments quickly so as not to become shelf worn.
It’s important to watch the market, watch the competition, and know what it happening at all time…because the market changes. On my website I have a direct MLS search. You don’t have to register to use it…just go here.