One of the main challenges, facing those who’ve made the decision to sell their home, is to create, develop, and consider, how to best price your house, based on a variety of factor and considerations. While there are may issues to consider and clarify, one must begin, by realizing real estate markets, constantly change and/ or evolve, and those who, proactively, prepare to use this knowledge, to their advantage, end up with the most desirable results. This article will briefly review/ discuss 4 key factors, which help determine if it’s a real estate, buyers, sellers or neutral market. Obviously, is it’s a Sellers Market, one can price his home, at a higher listing price, etc.
1. Employment: When the public feels more self – assured, about what’s going on with the job market, including job security, etc, there are more potential, qualified buyers available. When this becomes a factor related to a developing, sellers market, there are more buyers around, than houses, available, on the real estate market. When the economy improves, and salaries rise, buyers are better qualified to pay more for their homes!
2. Interest rates: The vast majority of individuals, purchase a house, with the assistance of monies received, via a mortgage. When interest rates are low (as they presently are, and have been for the past couple of years), a buyer’s monthly payments (interest and principal) are lower, and, thus, become capable of buying more home, for the buck!
3. Competition: The economic concept of supply – and – demand, certainly applies to home pricing! When there are more homes available on the real estate market, than potential buyers, pricing is reduced. Conversely, when there are more buyers than sellers, prices will generally rise! Competition is also an important factor, because, how a particular home compares to others, presently available for sale, on the market, factors heavily into pricing.
4. Area’s desirability: While a principal concept for real estate has often been described as Location, location, pricing is also impacted significantly, by how desirable one particular neighborhood, or even block, might be, in relation to, the greater geographical area.
Obviously, it makes a big difference, if we are experiencing a Sellers, Buyers, or Neutral Market. Prices rise when it’s a sellers, drop when there’s more buyers, and is more – or – less stable, when it’s neutral!