It’s Not Just Location, But Also Supply & Demand

All Anacortes home sellers want the most money for their home within the shortest time frame possible. How do you know what the right price is to set on your home?

Some real estate agents use the assessed value of the home as a basis for value. The assessed value of your home is not necessarily today’s market value. For example, Skagit County home values are only based on a drive-by viewing done once every four years!

What if you remodeled the interior of your home? Or added a room to your home? What if a neighbor’s tree was removed, improving your view? Or a neighbor’s tree now blocks your view? All of these have dramatic impacts on price.

Home staging also impacts the appeal of your home and pricing. Are you willing to do some staging? Staged homes sell for a higher price, and in less time… that is proven. That is why we offer all of our sellers free staging consultations.

Recent home sales impact the value of your home, but only if the right “comps” are used. If your home is a one level home, only one level homes should be used as “comps”, since one level homes cost more to build. Only homes of a similar age should be used. If your home has been completely remodeled, then the “effective year built” could be used to determine the right comps to use. However, if only the kitchen was remodeled and the rest of the home is dated, then the actual year built is what should be used with an adjustment for the remodeled kitchen.

Current inventory of homes for sale with your amenities is a critical factor to consider, as is the absorption rate (how many months of inventory are on the market) and whether the inventory is growing or shrinking. The market price of real estate is always based on supply and demand. Prices were highest in 2005-2007 when demand exceeded supply. From 2005-2011, we saw shrinking demand, excess inventory, and therefore low prices. 2012 was a transition year. In 2013, we are experiencing a varied market with some market segments a buyer’s market and some a seller’s market.

When doing a home value analysis, it is also important to compare homes with similar floor plans, close to your location, and also know how to make adjustments for difference between homes. How much money you have put into your home does not always increase the value of your home. For example, if your home is in Anacortes and your neighbors with the identical home converted one bay of their double car garage to a family room and you have a two car a garage, your home is probably worth about $10,000 more, even though your neighbor has more money invested into his home.

The real estate market has shifted. If you are considering a move, this is an excellent window of opportunity to sell because we are low of inventory and the pent up demand of buyers is being felt with active sales in most price ranges. If you are thinking of selling your home in 2014, please call me today to discuss what you should be doing now be to be ready.

Timing is everything! Please call if you would like a complimentary, no obligation, market analysis. Jean Groesbeck (360) 941-3734