Are you planning to sell your home?
Every year, over 5 million existing homes are sold in the United States. Perhaps you’re looking to move to another neighborhood or you’re relocating permanently out of the country. Or you’re upsizing or downsizing.
There are several reasons a homeowner can want to sell their prized possession, but at the end of it all, you want to make as much as possible off the sale and you don’t want the property to stay on the market for a long time.
This is where a market analysis comes in handy.
Continue reading to learn more about the befits of doing market research before you put your home on the market.
Is It a Buyer’s Market or a Seller’s Market?
In simple terms, a buyer’s market is when supply is greater than demand. A seller’s market is when demand outstrips supply.
As a home seller, you want to put your home on the market when it’s a seller’s market. Since the demand for homes is higher than there’s supply, prices are likely to be higher and properties sell faster.
Unless you’re a real estate professional, it’s hardly possible to know whether your local market is currently a buyer’s market or a seller’s market. However, if you conduct a market analysis, you can easily get this information and use it to make a smart decision.
If it’s a buyer’s market, for example, you can resolve to shelf the plan to sell your home, since market conditions won’t allow you to get the best deal.
Like in most markets, property prices are affected by several forces, including demand and supply. Pricing your home correctly is key to selling it, especially when you want to sell it faster.
Yet, you won’t be in a position to price it competitively if you don’t know what other similar homes in the locality are going for. This is another reason to conduct a market analysis.
You’ll be able to establish the average price of homes in the area, as well as the price range and price trends.
You can also use this information to determine whether selling the home right now is the best thing for you. If average prices are below your home’s value, you could decide to hold on, waiting for market prices to go up, especially if your analysis shows prices are trending upwards.
Identify What You Can Do to Sell Faster and at Asking Price
Market analysis will help you gather the information you need to establish what you can do to gain an edge when selling a home.
For example, if there are homes in the market that sold above the average prices, you can research why they did so. If the owners made some upgrades, you’ll know the kind of upgrades you also need to make. If they used a unique strategy, such as working with a real estate pro like Bruce Champion Real Estate, you’ll know it.
Do a Market Analysis When Selling Your Home
You might be hesitant to invest in market analysis because of the costs and time involved, but as we’ve fleshed out, you have every reason to. A market analysis, in summary, will help you obtain the information you need to make a smart decision.
Our blog has more real estate tips and insights, so stay tuned!