We often hear from sellers they are waiting for the peak of the market to sell. As a homeseller in 2020, it is beneficial to price your property on the lower end of the spectrum. This will enable you to generate the most activity in the early stages of your marketing. If inventory begins to build and there is more competition on the market, you should make price adjustments quickly. It would also be advantageous to list sooner in the year, as buyers are eager to purchase a property before interest rates go back up. Staying one step ahead of your competition will help you to sell for the best price and will decrease your time on the market.
The current economy is now the longest recovery on record. What we have learned from the past is the real estate cycle is roughly 8-10 years. In addition, leading indicators like sales activity give us an idea of where prices will go. Sales activity have been decreasing in the last couple of years and as a result prices have plateaued. 2009 was the last bottom of the market and homeowners have benefitted from a rising market since then. A bonus, interest rates are very attractive at sub-4%. This is keeping buyers motivated in the market to buy something before rates tick upwards.
When determining how to price a home, in addition to comparables, market trend and timing are a couple points to consider. Here’s an example of how to price your home for the market:
If you had a range of value for a home: $A – $B, you would decide on a price based on how the market was moving and your required timeframe to sell.
- If the market price is trending upwards, and you are not in a rush to sell, you are able to list toward the upper end of the range $B.
- If the market price is trending sideways, and you are not in a rush to sell you can list toward the middle of $A & $B.
- If the market price is softening and prices might go down, you want to list toward the lower end of the range $A.
You may or may not get multiple offers, but remember that you as the Seller decide what offer to work with. In the current market, prices are trending sideways and things may soften before prices start moving up again.
For Sellers looking to sell in 2020, it would be beneficial to price their property in the middle of the spectrum. However, as more competition come on the market, they may have to make price adjustments. It would also be advantageous to list sooner rather than later as Buyers are eager to purchase a property before interest rates go back up.
If you are ready to sell in 2020, contact us at ChaneyBrooks Choice Advisors for a consultation today.