Buying or Selling a Home Using Market Data to Your Advantage

Presidio Real Estate Services is not your typical real estate brokerage. You may ask, what does this mean for me ? Hopefully a lot. We use the underlying market data to identify trends and characteristics buyers and sellers need to be aware of. For instance, did you know that when a home is sold in less than 30 days, the sellers usually get no less than 97% of the asking price and they close escrow in less than 85 days. Not bad in today’s market. How could you use this information to price a home for sale  or buy a home ?

Selling a Property

When we meet with prospective clients they often think they know the market better than we do. This is because a lot of real estate agents are thought of about as highly as car salesmen. Sorry guys and gals but it is true. We usually ask clients what they think the home is worth when we meet with them. The answer, usually a higher price than the actual value. But that is ok. Optimism is important in today’s economy. If we look at the underlying market data, homes that have one (1) price reduction while on the market, sell for about 93% of the original asking price and take almost 126 days to close. If the price needs to be lowered more than once, sellers can expect to get only 89% of the original price, and it will take them more than five months to sell the property.  The longer a property sits on the market the more buyers and their agents buyers perceive there must be some sort of problem. This translates into to a lower price for sellers.

Using Housing Market Data To Save or Make you Money

Examine the market data and price your home accordingly. Most homeowners meet with agents and brokerages that show up with a few recent comps from the MLS and determine a price from there. Hardly a solid way to do it.  The average homeowner has little knowledge of all the  local market details. They have put a lot of time and money into the property and usually think it is worth more than it is.  Pricing a home based on what you think it is worth and and what buyers will pay may be miles apart.  The last two properties we sold received offers that were less than 1% below the asking price and the sale closed in less than 60 days. Our sellers saved themselves a lot of time and money.  Our market reports help you make smart decisions.

Buying a Home

For home buyers it is important to know the intricacies of the market. In today’s environment everyone wants a bargain. But throwing out an offer 50K below the asking price usually doesn’t work. However if you make an offer knowing there are 5 properties going into foreslosure around the corner, and a few other details you may be able to convince a seller that your low offer really isn’t that low.  If you know a property is priced right then offer 3% less to start with. Maybe you will save 5-10K. I can say this, you won’t save any money if you do not understand how the local market is behaving. And if you don’t care, we will always accept money that is thrown away. I have kids to put through College. Save money, make smart decisions, and use market data to help you buy or sell your home.

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  1. Pingback: Real Estate Buying and Selling Tips in Ventura County | ProRealEstateTips

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