Home Sellers Gain Advantage With Price Range Analysis

0
19
home sellers gain advantage with price range analysis
home sellers gain advantage with price range analysis


Home sellers can gain a tactical advantage over their competition by conducting a thorough home price range analysis, but many are failing to undergo this critical process.

More than 40% of all home sellers who listed a home for sale in Tallahassee in 2012 failed to sell their home, and the top reason was poor preparation.

Imagine trying to move your family from one home to another due to a positive experience in your life, but not being able to get rid of your previous home. The pressure of making a second house payment has often proven to be a terrible source of stress for families in our tough economy.

Preparation Is The Home Sellers Advantage

But you can avoid the double-payment problem by getting your previous home sold fast. Now that we are selling homes on the internet, all of the data is there for home sellers (through their wisely chosen real estate agent) to analyze the market and price their homes correctly. By way of example, let’s say you have a home that is worth around $350,000. In Tallahassee, your well trained Tallahassee real estate agent could produce the following information:

Leon County Inventory Report
Relative Supply of Homes – January 2013
As seen on www.Manausa.com
For Sale Sold (Past 12 Months) Months of Supply
PRICE RANGE All New Resale All New Resale All New Resale
Leon County (Tallahassee)
$0 $50,000 110 0 110 240 0 240 5.5 No Sale 5.5
$50,000 $100,000 402 1 401 481 8 473 10.0 1.5 10.2
$100,000 $150,000 319 1 318 471 6 465 8.1 2.0 8.2
$150,000 $200,000 218 8 210 466 9 457 5.6 10.7 5.5
$200,000 $250,000 179 17 162 311 38 273 6.9 5.4 7.1
$250,000 $300,000 132 23 109 196 46 150 8.1 6.0 8.7
$300,000 $350,000 77 7 70 113 17 96 8.2 4.9 8.8
$350,000 $400,000 76 6 70 70 6 64 13.0 12.0 13.1
$400,000 $450,000 28 3 25 44 8 36 7.6 4.5 8.3
$450,000 $500,000 26 1 25 23 1 22 13.6 12.0 13.6
$500,000 $550,000 13 1 12 12 0 12 13.0 No Sale 12.0
$550,000 $600,000 17 0 17 7 0 7 29.1 No Sale 29.1
$600,000 $650,000 6 0 6 10 0 10 7.2 No Sale 7.2
$650,000 $700,000 10 0 10 9 0 9 13.3 No Sale 13.3
$700,000 $750,000 2 0 2 5 0 5 4.8 No Sale 4.8
$750,000 $800,000 7 0 7 4 1 3 21.0 0.0 28.0
$800,000 $850,000 2 0 2 2 0 2 12.0 No Sale 12.0
$850,000 $900,000 5 0 5 1 0 1 60.0 No Sale 60.0
$900,000 $950,000 1 0 1 0 0 0 No Sale No Sale No Sale
$950,000 $1,000,000 4 0 4 0 0 0 No Sale No Sale No Sale
$1,000,000 + 15 1 14 7 1 6 25.7 12.0 28.0
Totals 1,649 69 1,580 2,472 141 2,331 8.0 5.9 8.1

The information in the table shows that there 13 months of supply of homes in the $350K to $400K price range, and 8.2 months of supply from $300K to $350K. Both of these ranges have more homes than buyers in the market. Furthermore, we know as the higher priced homes languish on the market, these home sellers will yield to price reductions.

These price reductions represent future competition in the market. For example, home sellers priced at $390,000 who reduce to $325,000 represent new competition for home sellers currently on the market at $325,000.

And guess which home sellers will be favored by most buyers?

The future competition for home sellers in this price range will be a mix of those home sellers who have dropped their prices as well as home sellers who have failed to sell their homes in the recent past.

Homes That Recently Failed To Sell

When we measure the number of homes that recently failed to sell, we find that more than 3 home sellers every day are joining this unfortunate group.

Considering that fewer than 7 homes are selling every day in the Tallahassee MLS, this is not an insignificant number of unhappy home sellers.

Home Sellers Must Choose Wisely

Near the end of the movie Indiana Jones And The Last Crusade (1989), Indiana Jones (Harrison Ford) must make a fast decision in order to save the life of his father, Dr. Jones (Sean Connery).

In a room filled with cups of water, he must choose the Holy Grail, containing the holy water that can heal his father.

But if he chooses incorrectly, he will die, as all the other cups are filled with poison.

He carefully looks throughout the room at hundreds of choices, and then makes his decision (based upon extensive research as an archeologist).

He drinks from his chosen cup…

And the old knight guarding the room exclaims

You have chosen wisely

Now flash forward to real life, it’s four months from now, will you still own the same home that you were hoping to sell? Or will the old knight be able to exclaim “you have chosen wisely!”

Home sellers must choose wisely when selecting a real estate company, or they will join the growing ranks of those who failed to sell their homes.





Source link