Let’s talk about the Market
When someone asks a real estate agent, “How’s the market?”, the first question should be, “Which market are we talking about?” Each city in Sonoma County has unique real estate dynamics. Understanding local market trends can make your home-selling journey smoother and more informed. Because selling at the wrong time can lead to not selling at all!
Key Factors to Consider When Selling a Home
Market Conditions
What are “market conditions”? Buyers and Sellers should be paying attention to very similar things, but for very different reasons. As a seller, pay attention to key indicators, (or market conditions), such as the average home price, days on market, and inventory levels. Why? All of these factors contribute substantially to deciding when the best time to put your home on the market is and at what price.
I have broken down some of the key terms that anyone looking to sell their home should understand:
- Inventory: Is it a buyer’s market or a seller’s market? Your agent should be able to tell you the answer to this without hesitation. Timing can be the difference between getting your asking price or having multiple offers flowing in over asking. Listing a home when inventory is low can maximize exposure and attract more buyers. Conversely, listing during high inventory periods might require more effort to attract attention. High inventory means more options for buyers. With low inventory, buyers can feel a sense of urgency to find a home before it’s gone.
- Days on Market (DOM): A low DOM typically indicates a seller’s market with high demand and quick sales. However, a high DOM could suggest a buyer’s market with a slower sales rate, potentially meaning deals for buyers. The longer a home stays on the market, the more likely buyers are to negotiate aggressively. They may offer lower prices, believing the seller is becoming desperate to sell.
- Pricing Strategy: Setting the right price is of course crucial! Your agent should conduct a Comparative Market Analysis (CMA) to determine the best price for your home based on recent sales of similar properties in your area. Ask to see this and go over it closely. Pricing your home correctly can avoid adding days on market before getting into contract. The longer a property stays on the market, the more likely buyers are to suspect underlying issues that may not be there. To find the best price possible walk the full property with your agent to see what you can knock off the “To-Do List”.
Home Preparation
This one is huge! First impressions matter and people are very picky. Consider making necessary repairs, clearing the section I on any pest reports that are done, decluttering and/or staging your home to make it more appealing to potential buyers. If money is tight, see if a staging company will stage just the common areas. A well-presented home can sell faster and for a higher price at times.
Marketing Plan
A strong marketing plan is essential to reach potential buyers. This includes professional photography, online listings, broker tour, open houses, marketing packets, and social media promotion. Your agent should have a comprehensive marketing strategy to showcase your home to the widest audience. Don’t be afraid to ask what they are going to do for you! Picking the right agency for your needs is crucial. Think of the brand you want to be associated with and what comes with that.
Negotiation
Your agent will handle negotiations with potential buyers to get you the best possible price and terms. This includes managing offers, timeframes, counteroffers, and any contingencies that may arise during the process. A good agent will walk you through each step with clear explanations of why every interaction matters in leading to a closed escrow.
Closing Process
Once an offer is accepted, your agent will guide you through the closing process, including inspections, appraisals, deadlines, and final paperwork. Ensuring a smooth closing is key to a successful sale.
