October 12th, 2010
What Home Sellers Need to Know Before Putting Their Property Back on the Market
-You’ve probably noticed that in today’s Philadelphia real estate market, many homes aren’t selling as quickly as they used. This has created an increasing number of homes for sale that the real estate industry often refers to as “expired listings.” When putting an “expired” home back on the market, therefore, home sellers must take into account a variety of factors in order to ensure their home sells in a timely fashion this time around, advises Larry Flick, CEO of Prudential Fox & Roach.
“If the listing or marketing agreement you had with your real estate agent has expired and you are looking to re-list your property,” says Flick, “make sure you are aware of the many critical factors that are involved in influencing the sale of your home.”
According to Flick, many real estate agents will advise home sellers to simply lower the price in order to get their home sold. Price, however, is only one part of the reason why a home doesn’t sell.
“While price is certainly one component in the timely sale of your home, it is certainly not the only component,” says Flick. “As you re-evaluate the proper pricing strategy for your home, be sure to request an updated market analysis from your real estate agent, and make sure it details the current pricing trends for your overall marketplace.”
Flick advises that the market analysis includes:
- Days on the market for properties in your specific price range
- The list-to-sales price ratios for homes that have sold (the more recent the better)
- Square footage cost (ask agents how and if cost per square foot may be relevant to price)
- The number of price reductions or, where applicable, the number of price increases
- The number of homes currently active in your price point.
Flick adds that when considering how to reprice your home, home sellers should be aware that a lower listing price can sometimes ultimately lead to a higher sales price due to the increased number of bids and competitive environment an attractive price generates. Flick advises that all home sellers discuss the current supply-and-demand metrics that are influencing home values in your neighborhood with any agent you’re considering working with.