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Thursday, March 25, 2010
Thursday, February 25, 2010
HOW TO DETERMINE THE PRICE OF YOUR HOME
Why is it that some homes sit on the market for a year while others sell like hot cakes? Frustrated sellers will blame a bad market, while a good real estate professional will tell you that many times, a slow sale is often attributed to the listing price.
If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and “shows” better than the competition, it will have a better chance of being sold quickly.
The secret is perfecting a technique that’s as American as apple pie: comparative shopping.
Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it’s one of the best methods to use when determining a home’s market value.
A responsible real estate agent will effectively evaluate a home’s worth through a process known as Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called “comparables,” that have sold in the area within the last six months. Typically, the agent is able to recommend a realistic price range that will ensure you top dollar and a reasonably
However, factors such as the amount of time needed to sell your home can alter the agent’s price recommendation dramatically.
Typically, people should check with real estate offices in the community to determine the typical duration that listings are on the market. Sales associates will explain that the marketing “norms” vary with prices and properties. Based on this criteria, the agent feels confident that he or she will be able to sell it for a price that both you and the buyer will be happy with. However, if you’re under time constraints because of unexpected job changes or moving agreements you’ve made on another property, this will narrow your chances of selling the home for top dollar in the market.
Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.
The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.
Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. Most MLS services provide information on deals pending that most real estate agents should be able to shore with you.
A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a one-mile radius of your house. Once completed you can feel comfortable that the price you’ve picked is a good gauge of the home’s worth and won’t discourage qualified buyers.
Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.
If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and “shows” better than the competition, it will have a better chance of being sold quickly.
The secret is perfecting a technique that’s as American as apple pie: comparative shopping.
Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it’s one of the best methods to use when determining a home’s market value.
A responsible real estate agent will effectively evaluate a home’s worth through a process known as Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called “comparables,” that have sold in the area within the last six months. Typically, the agent is able to recommend a realistic price range that will ensure you top dollar and a reasonably
However, factors such as the amount of time needed to sell your home can alter the agent’s price recommendation dramatically.
Typically, people should check with real estate offices in the community to determine the typical duration that listings are on the market. Sales associates will explain that the marketing “norms” vary with prices and properties. Based on this criteria, the agent feels confident that he or she will be able to sell it for a price that both you and the buyer will be happy with. However, if you’re under time constraints because of unexpected job changes or moving agreements you’ve made on another property, this will narrow your chances of selling the home for top dollar in the market.
Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.
The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.
Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. Most MLS services provide information on deals pending that most real estate agents should be able to shore with you.
A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a one-mile radius of your house. Once completed you can feel comfortable that the price you’ve picked is a good gauge of the home’s worth and won’t discourage qualified buyers.
Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.
Monday, August 17, 2009
July 2009 Housing Inventory
Simple rules of supply and demand have a tremendous effect on pricing. Prices have dropped over the past year due to high inventory levels. In price ranges above $500k houses are still moving very slowly, but inventory in the lower price ranges is now starting to thin out.
July 2009 Median Home Prices
The median price for homes sold in Buncombe County has dropped steadily for 2009. Sales prices have fallen 11% from July 2008 - July 2009.
Wednesday, June 10, 2009
Buncombe Countty Housing Inventory for May 2009
We are being told that the recession is over, but it will certainly be a while before we feel the effects.
The Buncombe county housing inventory is still very high across all market segments, and at the current purchase trend it will take a few years to recover.
The Buncombe county housing inventory is still very high across all market segments, and at the current purchase trend it will take a few years to recover.
Tuesday, February 24, 2009
Selling Your House? Increase its Value
Real estate expert Barbara Corcoran's tips for smart, easy home fixes:
With house prices shrinking, it's smart to make only the changes that put money back in your pocket. Remodeling Magazine's latest Cost vs. Value Report identifies the top home improvements that pay back big when you sell your home. Also, here are the best quick fixes today that bring buyers knocking on your door.
Smartest Home Fixes
Replace the sidingCost: $12,000Cost recouped: 84%
For a 3,000 square foot home, it costs about $12,000 for popular vinyl siding and that includes the trim and overhang.
Add a wood deckCost: $11,000Cost recouped: 81%
Today wood decks cost $35 a foot, including labor, and 30x10 is a good size deck.
Do a minor kitchen remodelCost: $21,000Cost recouped: 79%
If you do a major kitchen remodel, it costs more than $50,000. Before you rip out your cabinets, consider replacing only the doors. Countertops and backsplashes are the least expensive improvements to make, and they'll make your kitchen look up to the minute.
Install new windowsCost: $11,000Cost recouped: 77%
New replacement windows are more energy efficient, and cost about $350 a window, including labor. New windows add light to the home and light is the number two reason after location that buyers give for choosing their new home.
Move your laundry roomCost: $5,000Cost recouped: 75%
A basement laundry room makes your home look like it's from the last century. You can move a stacked washer and dryer into a closet that's less then 3x4 feet big and the whole job, including electrical and plumbing, will cost you about $5,000.
With house prices shrinking, it's smart to make only the changes that put money back in your pocket. Remodeling Magazine's latest Cost vs. Value Report identifies the top home improvements that pay back big when you sell your home. Also, here are the best quick fixes today that bring buyers knocking on your door.
Smartest Home Fixes
Replace the sidingCost: $12,000Cost recouped: 84%
For a 3,000 square foot home, it costs about $12,000 for popular vinyl siding and that includes the trim and overhang.
Add a wood deckCost: $11,000Cost recouped: 81%
Today wood decks cost $35 a foot, including labor, and 30x10 is a good size deck.
Do a minor kitchen remodelCost: $21,000Cost recouped: 79%
If you do a major kitchen remodel, it costs more than $50,000. Before you rip out your cabinets, consider replacing only the doors. Countertops and backsplashes are the least expensive improvements to make, and they'll make your kitchen look up to the minute.
Install new windowsCost: $11,000Cost recouped: 77%
New replacement windows are more energy efficient, and cost about $350 a window, including labor. New windows add light to the home and light is the number two reason after location that buyers give for choosing their new home.
Move your laundry roomCost: $5,000Cost recouped: 75%
A basement laundry room makes your home look like it's from the last century. You can move a stacked washer and dryer into a closet that's less then 3x4 feet big and the whole job, including electrical and plumbing, will cost you about $5,000.
Tuesday, February 3, 2009
10 real estate myths for buyers and sellers
The truth about the housing marketIn today’s uncertain market, fear runs rampant on both the buying and selling sides of the fence. Many myths need debunking. Here are five untruths held by buyers, and five held by sellers.
Buyer myth No. 1: The longer the house is on the market, the more you can negotiate.When buyers ask, “How long has this property been on the market?”, they think “six months” means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.
Buyer myth No. 2: The sellers today are desperate.Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. “I’m being transferred to Dallas” is a very different answer than “We’d like to find something bigger.” The first homeowner is hot to trot.
Buyer myth No. 3: You can’t buy a home today with less than 20 percent down.FHA loans require only 3.5 percent down, and you can even ask the seller to pay the closing costs.
Buyer myth No. 4: You need good credit to get a good loan.Once again, the FHA to the rescue! They’re happy to lend money to buyers with bad credit.
Buyer myth No. 5: You shouldn't buy before prices have bottomed.You can’t sharpshoot the real estate market. Once you identify the “bottom,” prices have already moved up.
Seller myth No. 1: Now’s the absolute worst time to sell.Not necessarily. It depends upon where you live. Many of the worst hit markets, like Las Vegas, Phoenix or San Diego, are already beginning to turn around. And if you’re a homeowner who wants to trade up, the loss you’ll take on your current home will be more than offset by the bargain you’ll get on the next one.
Seller myth No. 2: Never respond to a low-ball bid.All buyers today feel obligated to put in low-ball offers to see if the seller bites. If you respond with a reasonable counter offer, most buyers can be convinced to come up in price and make the deal.
Seller myth No. 3: The first offer is never the best offer.Most sellers believe that it’s smart to hold out for something better. But four times out of five, the first offer is the best you’ll ever see.
Seller myth No. 4: 'I can always reduce my price later.'Sellers often price their home high for a few weeks just to test the market. But buyers shop by price bracket and if your house is in the wrong one, you’ll just help sell everyone else’s home while yours sits there overpriced. And reducing your price later in small increments puts you in the position of chasing the tide as it goes out.
Seller myth No. 5: Before you refinance, shop around.You can if you want, but you’ll usually get the best deal from your current lender. And you’ll be able to negotiate your closing costs.
Source: Barbara Corcoran
Buyer myth No. 1: The longer the house is on the market, the more you can negotiate.When buyers ask, “How long has this property been on the market?”, they think “six months” means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.
Buyer myth No. 2: The sellers today are desperate.Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. “I’m being transferred to Dallas” is a very different answer than “We’d like to find something bigger.” The first homeowner is hot to trot.
Buyer myth No. 3: You can’t buy a home today with less than 20 percent down.FHA loans require only 3.5 percent down, and you can even ask the seller to pay the closing costs.
Buyer myth No. 4: You need good credit to get a good loan.Once again, the FHA to the rescue! They’re happy to lend money to buyers with bad credit.
Buyer myth No. 5: You shouldn't buy before prices have bottomed.You can’t sharpshoot the real estate market. Once you identify the “bottom,” prices have already moved up.
Seller myth No. 1: Now’s the absolute worst time to sell.Not necessarily. It depends upon where you live. Many of the worst hit markets, like Las Vegas, Phoenix or San Diego, are already beginning to turn around. And if you’re a homeowner who wants to trade up, the loss you’ll take on your current home will be more than offset by the bargain you’ll get on the next one.
Seller myth No. 2: Never respond to a low-ball bid.All buyers today feel obligated to put in low-ball offers to see if the seller bites. If you respond with a reasonable counter offer, most buyers can be convinced to come up in price and make the deal.
Seller myth No. 3: The first offer is never the best offer.Most sellers believe that it’s smart to hold out for something better. But four times out of five, the first offer is the best you’ll ever see.
Seller myth No. 4: 'I can always reduce my price later.'Sellers often price their home high for a few weeks just to test the market. But buyers shop by price bracket and if your house is in the wrong one, you’ll just help sell everyone else’s home while yours sits there overpriced. And reducing your price later in small increments puts you in the position of chasing the tide as it goes out.
Seller myth No. 5: Before you refinance, shop around.You can if you want, but you’ll usually get the best deal from your current lender. And you’ll be able to negotiate your closing costs.
Source: Barbara Corcoran
Monday, January 12, 2009
Friday, December 5, 2008
October Inventory Status - Buncombe County
Take a look at the following graph from wncrmls (Click To Enlarge):
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