When selling your home, the most crucial thing you can do is price it properly. Overpricing your home will scare buyers away and could potentially sabotage the entire selling process. Putting the proper price on your home, along with a few other strategies, should ensure the process goes as smoothly as possible.
If you think about it, the price of your home is its #1 piece of marketing and advertising. It's also what can make or break a deal.
A lot of sellers believe they can price a home high and then come down if they don't receive offers, but this is a risky move.
Buyers are often off-put by homes that are priced too high, and they kind of take it as an insult that you think they would pay that much for a home. They will also begin to wonder why the home has not sold, and they will likely think that something might be wrong with the roof or the foundation.
In this case, it will sit on the market, become stale, and probably sell for much less than you hoped for.
The best thing to do is to price the home correctly the first time, and you can do this by pricing it right at or just below the market value. We have multiple metrics that we take into account when determining an accurate list price. We find that the longer a home sits on the market, the less it will sell for.
If you have questions about how to nail the price the first time, please don't hesitate to contact us. We would love to help you sell for top dollar!
Recently, a few clients expressed interest in scaling up, despite a slow economy and buyer favoritism in the D.C. market. They ask, "Does it still make sense to sell a home even when there's not much activity in the market?" It might sound counterintuitive, but right now is actually an opportunistic time to be a move up a buyer in the marketplace.
For example, you own a condo or small townhouse worth $450,000 last spring. Since, the market has changed and property values have gone down by 5%. Today, your property will sell for $427,500. That's $22,500 less than it would have sold for last year!
Perhaps you were looking to buy a property worth $750,000 last spring. That property has also experienced a 5% decline, and will sell for $712,500 in today's market. That saves you $37,500.
Although prices have decreased, you will profit by selling your home and moving up. Even though that 5% market decline cost you $22,500 on your sale, it also saved you $37,500. This means you make $15,000 in this transaction.
There are other variables that may impact your transaction, but ultimately, now is a good time to be a move up buyer. Take advantage of this opportunity today! Give us a call or send us an email with any questions. We would be happy to help you!
The real estate market in Washington DC is in a transitional period due to the holidays. The Fed interest rate increase is also playing a factor right now.
So, what can we expect moving forward to 2016? I don't think that the Fed interest rate increase will have any long-term effects on your buying power. Interest rates are still hovering around 4-4.5%.
The metro DC market has many smaller markets within it, and these all play roles in forming different market conditions. I would argue that we're still in a seller's market. Just the other day I sold a home with multiple contracts, escalation clauses, and contingencies.
Inventory appears to be rising in Great Falls, Reston, Rockville, and Potomac. Prices are also starting to decrease and the number of days on market is decreasing. Price reductions are also becoming more common, and a buyer's market appears to be forming here.
Because we have such a dynamic real estate market with so many micro-markets, it's recommended that you work with a professional who knows what's going on.
Overall, it is a very opportunistic time to be a home buyer. Interest rates are very low, and we're seeing a buyer's market form in certain areas.
As for sellers, I recommend that you have your agent run a competitive market analysis on your property in order to gauge whether a home sale would benefit you.
Please don't hesitate to come to us with questions. We look forward to hearing from you!
