I love the town of Carmel, Indiana. Everything from its downtown area, with its nostalgic, life-size statues to its many golf courses. Lately, I've had several people asking whether or not now is a good time to buy Carmel real estate. I would say that any time is a good time to buy a home in Carmel simply because it is such a great place to live. But if you looking for reasons based on something a bit more empirical then consider the latest real estate data, starting with the statistical category of inventory.
In January, 2010, the total months of inventory based on closed sales reached a 15-month high of 13.3 months. Following this, total inventory based on closed sales dropped month-by-month until reaching a 15-month low of just 5.7 months in June, 2010. July, 2010 marked the beginning of a reversal. Climbing inventories mean a better selection for buyers, and quite often, better prices as well.
Speaking of prices, the average active price has also been trending down over the past 15 months. Since peaking at $562,000 in November of 2009 it has hovered in the mid-to-high 400's ever since; most recently, averaging $460,000. This was down nearly 1.1 percent from the previous month's average of $465,000. In July, homes went for an average of $350,000.
Thursday, September 9, 2010
Pricing Your House to Sell: Stand out from the Competition
Location can play a big part in deciding whether or not a house sells fast or stays on the market. But getting the perfect home in the perfect area is no longer good enough. It would seem people are likewise a bit concerned with cost. Go Figure!
Your typical buyer will tend to give the most attention to a home that has only recently been listed for sale. Often, a full collection of marketing methods are implemented to get the home noticed; things like e-mail, open houses, virtual tours and so on. And if that weren't enough, there's also the house's status as a "new listing" in the real estate boards. But inevitably, this interest will wane as what was once a new listing joins the ranks of the tired, old and unsold. This may embolden potential buyers to make a low-ball offer. Sitting around and waiting for acceptable offers can be extremely frustrating, especially when the offers just aren't coming. It's not possible to buy a new home until the current one is sold. Feeling a sense of hopelessness the seller may to decide to take a low-ball offer that is way below market value.
If only these sellers had given more contemplation to the sales price and priced the home to sell. But emotional attachments and hopes can conflict with rational judgment, leading many sellers to price their homes based on feelings rather than actual market information. Arriving at a good sales price doesn't have to be a stab in the dark. Just look at what homes in the neighborhood have sold for and when. Compare such things as condition and ammenities. If there are plenty of other homes for sale in your area then maybe an agressive initial price is called for.
Getting the price you want for your home might actually require you to underprice your home initially. Say a house that is virtually identical to your own recently sold for $194,500. In this example, we'll assume similar age, condition and so on. An initial price of $171,000 may be a good way to go. A low price like this will attract bargain seekers like honey attracts flies. The result can be a bidding war that quickly drives up the price of your home beyond what you originally had hoped for.
If you plan to put your home on the market then call a professional and arrange to have a appraisal done. And don't confuse a comparative market analysis with an appraisal because, while similar in purpose, they're not the same thing. A real estate appraiser is receives far more expert training in the area of property valuation compared to a real estate agent. You may find that what you think your home is worth and what the appraiser think your home is worth are not the same thing.
Remember that it is the market that decides how much a thing is worth. Your home is special to you because you have so many memories there. But to a buyer, it is just another home on the list. Pricing your home to sell is the best way of getting noticed in a buyer's market.
Your typical buyer will tend to give the most attention to a home that has only recently been listed for sale. Often, a full collection of marketing methods are implemented to get the home noticed; things like e-mail, open houses, virtual tours and so on. And if that weren't enough, there's also the house's status as a "new listing" in the real estate boards. But inevitably, this interest will wane as what was once a new listing joins the ranks of the tired, old and unsold. This may embolden potential buyers to make a low-ball offer. Sitting around and waiting for acceptable offers can be extremely frustrating, especially when the offers just aren't coming. It's not possible to buy a new home until the current one is sold. Feeling a sense of hopelessness the seller may to decide to take a low-ball offer that is way below market value.
If only these sellers had given more contemplation to the sales price and priced the home to sell. But emotional attachments and hopes can conflict with rational judgment, leading many sellers to price their homes based on feelings rather than actual market information. Arriving at a good sales price doesn't have to be a stab in the dark. Just look at what homes in the neighborhood have sold for and when. Compare such things as condition and ammenities. If there are plenty of other homes for sale in your area then maybe an agressive initial price is called for.
Getting the price you want for your home might actually require you to underprice your home initially. Say a house that is virtually identical to your own recently sold for $194,500. In this example, we'll assume similar age, condition and so on. An initial price of $171,000 may be a good way to go. A low price like this will attract bargain seekers like honey attracts flies. The result can be a bidding war that quickly drives up the price of your home beyond what you originally had hoped for.
If you plan to put your home on the market then call a professional and arrange to have a appraisal done. And don't confuse a comparative market analysis with an appraisal because, while similar in purpose, they're not the same thing. A real estate appraiser is receives far more expert training in the area of property valuation compared to a real estate agent. You may find that what you think your home is worth and what the appraiser think your home is worth are not the same thing.
Remember that it is the market that decides how much a thing is worth. Your home is special to you because you have so many memories there. But to a buyer, it is just another home on the list. Pricing your home to sell is the best way of getting noticed in a buyer's market.
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