Whether you’re selling or buying a home, being informed about the local market will help you meet your real estate goals. If you’re working alongside a real estate agent, they can provide you with an in-depth market analysis based on trends in your current or desired neighborhood, city and region. While you may be focused on home features and amenities, don’t forget to ask your agent these important market-specific questions.
- What is the average sale price in my market?
If you plan to sell your home, knowing the average sale price in your market will help you price your property to sell. Pricing your home correctly will attract maximum buyer interest. Current market conditions determine the value of your home, and your real estate agent can help you decide on a price. If you’re considering buying a home, knowing the average sale price in your market will help you make a competitive offer, so you can get the right house at the best terms.
- What is the average number of days on market in this neighborhood and/or city?
Having realistic expectations is essential when beginning a real estate transaction. If you’re selling your home, knowing the average number of days on market in your current area will give you an idea of how long your home will potentially be on the market. Be sure to compare similar homes to yours – size, features, amenities and listing price. When buying a home, knowing the average number of days on market in your desired location will let you know how competitive the market is and if you need to act fast when making offers.
- What is the active inventory of homes for sale in my market?
Is there a plethora of homes for sale in your current or desired market? Or is there a shortage? If you’re selling your home, it is valuable to know how many other homes are for sale in your area. The less homes for sale in your area, the less competition you have and the more likely your home will sell at a quicker rate if priced right and show ready. However, whether you’re a first-time homebuyer or you’re planning to buy after selling your current home, you’ll want to know if there is a shortage of inventory because this will limit your options and you’ll want to be prepared to compete against multiple offers.
- What is the trend of homes sold in my market?
Has the number of properties sold increased, decreased or remained the same over the last few years? Before selling or buying a home, it’s valuable to know the trend of homes sold in your current or desired market. This information will provide insight into whether it’s a good time to sell or buy.
If you’re interested in learning more about your local market, you can access and download Long & Foster’s market reports here. Contact your local real estate agent for insight and advice (and if local for you means DC, MD, VA, or WV, you can contact me). Also check out my tips for home staging and download the guide.