Pricing Your Home in the 2013 Spring Real Estate Market
It’s all good…. As you’ve likely heard or read from a variety of sources, the Spring real estate market, in such towns as Weston, Wellesley,Needham, Wayland, Lexington and Concord to name just a few, is Hot, Hot, Hot. And with properties priced below $1 million and sometimes even below $1.5 million*, a better word to describe the market is frenetic. A typical scenario that we have been seeing of late is as follows:
- A home priced at $895,000 comes on the market on a Wednesday.
- A broker’s open house is scheduled for Thursday.
- Public open houses are scheduled for Saturday and Sunday.
- Offers are due by the end of the day on Monday, which ultimately results in multiple bids, some over asking and some forgoing inspection and/or mortgage contingencies
I’m not sure if I’ve seen this level of activity – ever….
And so…the bottom line is that we have a changing market. Or maybe more accurately said, we have a market that has drastically changed. And given this, our pricing strategy needs to change as well to adapt to this evolving market. But before I get to all that, let me start at the beginning. When we – as real estate agents – meet with you as sellers to provide you with a value for your home, also known as a Comparative Market Analysis (CMA), it is standard to take the last six months of solds as comparatives. The theory behind using six months of data is because this time frame is considered current enough from which to draw relevant market trends and pricing conclusions. At least that’s the way it used to be – but not anymore….
The market has changed so dramatically in the last few months that to accurately price a home, you need to analyze the pending - “sold but not yet closed” – activity that is happening as we speak, right now. The truth of the matter is that looking at a sold home from late October (just under six months ago) tells a very different story because it was a much different market – a market that is virtually no longer relevant today. And so for the first time that I can remember, we are presenting CMAs by using the pending or very recently listed/sold data. This concept is known as pricing in an appreciating market. It’s absolutely fascinating. And given this recent, frenetic activity level, it almost seems as if we are in the midst of a history-making market. Of course I would be remiss if I didn’t add that these market trends of late are subject to change or shift at any moment in time, which makes all this even more fascinating. Stay tuned….
What are your thoughts on this subject? Are you currently selling your home? If so, have you experienced this frenetic market activity? Or are you currently buying a home and seeing this kind of activity from the other perspective? And what are your thoughts on how this Spring market will continue to evolve and develop? I can’t wait to hear.
For a complimentary home appraisal and advice on how to price your home effectively in this Spring market, please contact me, Lisa Curlett (781-267-2844 or www.homesalesbylisa.com). I would be delighted to help you with your home selling process in any way that I can.
* The higher-end market above $1.5 million is a bit of a different story, however. Because of the nature of the higher-end market, these properties do not sell as quickly, and so the market for this price range is more static. Thus when pricing at this level, a six-month analysis for comparatives is still relevant.
Tags: 2013 Spring real estate market, Comparative Market Analysis, Concord MA, home selling, home selling process, Home Selling Tips, Lexington MA, Needham MA, pricing your home, Selling your home, Tips on selling your home, Wayland MA, Wellesley MA, Weston MA, www.homesalesbylisa.com