Understanding the Market

Understanding the market is key for sellers to determine the asking price, and for buyers to evaluate the value of a home. Comparisons are made to similar houses in the neighborhood. If you’re asking price doesn’t stack up, buyers will quickly reject your property and move on to the next listing. That’s why your first step in determining the right price for your home is to have your CENTURY 21 Almar Sales Associate prepare a Comparative Market Analysis (CMA) report for your home. The report provides details on recent sales of homes similar to yours, as well as the asking price of homes currently on the market and properties in your area that did not sell.

Once you’ve done your homework on the market conditions, you’ll also want to consider the factors listed below that may add or detract from the value of your home. With these factors in mind, you and your REALTOR® should be able to determine a fair price for your home:

LOCATION: What are the tradeoffs and advantages of your property? Is the house located on a busy street or is it on a cult-de-sac? Look at both your neighborhood and location within the neighborhood.

FEATURES: Does your house have specific features that set it apart from others, such as a spectacular view, pool or an over-sized lot. Remember, features that you feel set your house apart from the others may not always be a plus to potential buyers.

CONDITION: Has your property been adequately maintained? Are there minor or major repairs that could make a difference in the immediate sale of your home? Remedying these items now will increase your value.

AGE: Potential buyers will want to know the age of the plumbing, a/c unit, roof, appliances, etc. If anything has been replaced, this could add to the value of your property and your sale price.

CURRENT MARKET: Is today’s market a buyer’s market or a seller’s market. A “buyer’s market” means there are several similar properties for a buyer to choose from. Usually, interest rates are attractive, and prices are steady or declining. A “seller’s market” is the opposite. While interest rates may be low or high, housing prices are on the rise, and there are few houses to be sold.

TIME FRAME: How long do you have to sell? What was the average time on the market for a comparable home that sold? Can you wait while a buyer arranges financing? Does your purchase of another property depend on this deal closing quickly?

ESTIMATING YOUR BOTTOM LINE – Before you sell, it’s important to estimate the various expenses, for which you’ll be responsible, that will affect your bottom line. In addition consider any mortgage pay-off amount, any early pay-off penalty and the expense of home repairs you’ll need to make before listing your home on the market. You’ll be responsible for various closing costs including real estate commissions, repairs, transfer taxes and pro-rated property taxes. Closing costs vary from area to area. Your CENTURY 21 Almar Sales Associates can provide an estimate of your settlement costs, although it is advised you should ultimately consult a legal or financial professional.

There may be tax implications related to the sale of your home. Tax information is subject to change. You should consult a tax professional specializing in real estate matters in advance.

REVIEW BUYER FINANCING OPTIONS – When the time comes to negotiate a sale, it is best to be aware of current financing available to buyers. With the help of your CENTURY 21 Almar Sales Associate, review the mortgage climate. Are loans in abundance or hard to obtain? Does your property qualify for the Federal Housing Administration (FHA) or Veterans Administration (VA) loans? Is your current loan assumable? Does the buyer expect you to pay any of the discount points connected with the cost of this loan? Determine your time frame in waiting for financing to be secured by the buyer, including alternatives.

PRE-LISTING INSPECTION – To protect yourself from any potential liability, you may want to obtain a professional pre-listing inspection report to accurately disclose any health and safety concerns or adverse conditions regarding your property. In many states, pest inspection and termite reports, in particular, are required before a house can be sold. To find a good inspector, ask friends and business associates for referrals or get recommendations from your CENTURY 21 Almar Sales Associate.

CENTURY 21 Almar & Associates is just a phone call or an email away!  Please contact our Customer Service Center at 1-800-890-4018 or Contact Us today for all of your real estate needs!