Spring is in the Air, Home Values are UP!
2016 is already beginning better than expected for home values, days on market, and even interest rates remain much the same as we saw them through 2015. So far, home values between January 2015 and January 2016 rose 9.4% and the median home value across Jackson County is around $231,000, up from $219,000. Average days on market across the county have slashed nearly in half; 48 days you can expect, that’s down from 73 at the beginning of 2015. All in all it’s a healthy start to the New Year!
This time we are going to talk about List Price versus Sales Price. Sellers often think when you go to list your home to price a little bit higher than the comparable sales so you, “have room to negotiate”. Is there any merit to that advice? We suppose it depends on your motivation as a seller. Some need to sell their homes fast therefore pricing in the market is key. However, some can hold out for an offer for the price they want, with one caveat; you’ll still need to price close to market value. Take a look at this chart to the right. You can see that in January this year, homes sold at 95.5% of their asking price. If we consider the current median home price the difference in asking price versus sales price is approximately $10,000. Selling in the winter months certainly has its advantages! Lower inventory levels and the same demand for homes means you are more likely to get the higher list vs. sales price than you would in the summer months.
We often consider a price reduction after a month or so on the market with little to no activity, but sometimes holding out for an offer works out and sometimes it doesn’t. We’ve had three listings within the last year, in this sort of scenario. First sellers aren’t in a rush to move, they haven’t lowered their price for a year and are still waiting for an offer. They may get one and they may not ever get an offer on their home. Second sellers had to get a full asking price in order to buy the home they wanted, needing the extra funds at closing to make it possible. Finally, the third sellers weren’t in a rush to sell and went with their gut to keep their price the same. After a few months, got an offer! Was it luck? Or did the timing of their listing going on the market in the winter improve their chances of getting the offer they wanted? Perhaps a little of both!
At the end of the day, let’s talk! The most important step to get your home or property ready for sale is hiring Realtors who listen to your needs and understand your motivation to sell. One more thing about list vs. sales price, have a gander at the chart again and see where your property is located. A buyer’s agent can find this useful in helping a buyer determine the price they will offer for your home. For example, if you’ve got a home priced at $200,000 in White City, the buyer’s agent will show them the above chart and say, “$200,000 is a very good price for this home because most homes in White City sold for 99.7% of their asking price.” But if you had your home listed in East Medford for $300,000, they may tell their clients, “It looks like it may be priced a little bit high because homes in East Medford tend to sell for 95% of their asking price. Maybe an offer of $285,000 is more reasonable.” Therefore, if a lower offer comes your way, don’t be offended, we can always work on a deal that will be beneficial to serve your motivation in the end! We are the HD Team after all and it’s all about you! Give us a call and tell us how we can help: Alice 541-646-2295 or Don 541-944-5540.Download Newsletter