From Preparation to Closing in New Hampshire
Selling your home is a significant life event that requires careful planning and execution. Whether you’re a first-time seller or a seasoned homeowner, the preparation stage is crucial for a smooth and profitable sale. In this series of blog posts, we’ll walk you through the essential steps you need to take before listing your home on the market.
How to Leverage Market Conditions for a Successful Home Sale
Before you even think about listing your property, it’s vital to understand the current real estate market in your area. Knowing the average selling price for homes similar to yours helps you set a competitive yet realistic price. Overpricing can lead to your property sitting on the market for too long, while underpricing could mean leaving money on the table. Market conditions can dictate the best time to sell. You cannot “time” the market. But, selling during a seller’s market could fetch you a higher price, while a buyer’s market might require you to be more competitive in your pricing or offer additional incentives. Realizing what kind of market you are in will dictate how you price and market your house. Knowing the average time on market for homes in your area can help you tailor your marketing strategy even more. If homes are selling quickly, a more aggressive approach may work. If sales are languishing, you might need a more nuanced, patient approach.
A deep understanding of the local market can help you anticipate potential challengers and plan for them. For example, if homes in your area are frequently under-appraised, you might choose to get a pre-listing appraisal to set buyer expectations. If you understand what features or improvements are yielding a good return in your local market, knowing what buyers are exactly looking for in your area can help you make targeted improvements to your property. This could range from simply staging techniques to more significant home improvements, and you’ll be able to invest wisely before listing.
Being well-informed about the market gives you an overall stronger negotiating position. You’ll know what your home is worth and can better assess the quality of the offers you receive. Because selling a home can be an emotional process, understanding the market can prepare youfor the highs and lows, making the entire process less stressful.
There are two basic areas you will want to really dive into though.
- Average selling price
- Time on market
If you are not a real estate agent, looking into the average selling prices and time on market can be daunting—even if you know where to go to compile the data.
The first stop is public records. Property sales are public records, and many counties have this information available online. You can search for recent sales in your area to get an idea of selling price. Websites like Zillow, Redfin, and Trulia often provide estimated home values and recent sale prices in a given area. Just remember though, these are estimates and may not be entirely accurate. Check out your local newspapers that have real estate sections that list recent home sales, including the selling price. Some communities have newsletters that may include information on recent home sales. Sometimes, the best information comes from those who live around you. Neighbors who have recently bought or sold may be willing to share what they know about current market conditions.
Finding time on market can be even a bit more of a challenge. Check with Zillow and the like to see how long homes similar to yours have been listed on real estate websites. Many listings will show a “Days on Market” or DOM number. While typically reserved for Realtors, some websites also offer limited access to MLS data, which also includes time on market. Some real estate agencies publish market reports that are available to the public. These reports can often include average time on market for homes in various neighborhoods. And local community groups on platforms like Facebook often discuss real estate. You can ask members for their experiences or observations regarding time on market.
You may also want to consider seasonal trends. Spring is often described as the opening of the home selling season. By the time November rolls around, buyer competition has dropped off, and many real estate agents take the holidays off because there is less business.
My most number one piece of advice, however, is to consult a real estate agent. Even if you’re not ready to sell yet, agents are willing to share information in the hope of winning your future business.
