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Selling Real Estate

If you are thinking about selling a property and have not done it for a while you may find the process of Selling Real Estate a little daunting.

 

When we do an evaluation on a home we take the following information into consideration. When you are Selling Real Estate you want to understand the current market conditions so you can price your home with home selling strategy in mind.

Points Covered In Our ” Selling Real Estate” Strategy!

1. Current Market Conditions (Start by looking at Absorption Rate)
2. Inventory levels relative to your home
3. Recent Sales
4. Your Personal Timeline

Market Conditions are ever changing and it really helps if everybody involved in the sale of your home is on the same page. It is important to understand current market conditions before you proceed in listing your home.

It is  interesting to note that in the Greater Vancouver area not all markets are the same. Real Estate markets are both vertically and demographically influenced. For example in any one given pocket you may see single family homes doing well but strata properties are not doing as well.

I mention this because when we listen to the news broadcasts there is a tendency to make broad brush statements about the Real Estate market in the absence of the above factors.

The more we understand how your home is fitting into your current market conditions and your personal plans the better we are in tailoring a marketing plan that is going to work for you and the sale of your property.  After all there should be more to selling Real Estate  than just putting a sign on your lawn and hoping for the best.

A good starting point in this Initial conversation and review of your property is to look at the Absorption Rate.

Selling Real Estate

Selloing Real Estate Absorption Rate

Real Estate prices are a reflection of supply and demand. It is safe to say that in a competitive market, the unit price for a particular item will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the supply (at current price). In the housing market this is reflected by the absorption rate.

Selling Real Estate – How to calculate the absorption rate?

Start by finding the number of homes sold in the real estate market over a 6 month period. Next, divide that number by 6, the result of this calculation is the absorption rate.
Next divide that rate into the number of current listings(homes for sale).This will give you the length of time it would take in months to bring the current inventory to zero if no more listings were added.

What does it mean to the seller? Here is a Guideline!

Sellers Real Estate Market: 1 to 4 months supply of homes
Balanced Real Estate Market: 5 to 6 months supply of homes
Buyers Real Estate Market: More than 6 months supply of homes

In a sellers Real Estate market the seller can set the price, do minimal staging and the house will probably sell as there is very little inventory for Home buyers.

In a balanced Real Estate market the Seller has to be more sensitive to the competition,and be quick to adjust prices if the market feedback is giving that indication.

In the buyers market the home seller will have to price sharply and pay much closer attention to House presentation and home repair. In a Buyer’s market it is always a good idea to also keep an eye on distress sales or Court Sales.

If you have a house or an apartment that you are thinking about selling and Selling Real Estate information is important to you, Call Don Mcfadyen, Prudential Sterling Realty 604-728-0192.

Selling Real Estate in Coquitlam, Port Coquitlam, Port Moody and surrounding areas is what we do.

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