How to sell your house faster using data from the internet
When you are buying or selling a property, it is important to “crunch” some data. You’ll use this daya to gain valuable insights into your area. Research provides significant value that can be utilized to improve your negotiating position for the property you are looking to buy or sell. Some things to consider include:
Comparable properties are ones that are most similar to yours. No two properties are exactly alike. Comps are similar in size, number of bedrooms, etc. You can determine what differentiates your property from the comps, and use this information to help you determine what price your property can achieve or what your offer should be. Comps can either drive the price of your property up or down depending on the quality, quantity, and location of the nearby property inventory.
Look for properties with similar square footage, the same number of bedrooms and bathrooms. Be sure to note quality of the kitchen and bathroom areas. These can have an impact on the price. If one property has an updated kitchen it will likely command a premium over a similar property with an original kitchen. Pay close attention to age of the property and external features i.e. a pool, landscaping, and exterior paint and siding, as these can be substantial boosts (or detractions) to the price. Sites like Zillow and Trulia are great to compare similar properties.
Choosing an agent is crucial. You want an agent that will be your guide through the real estate transaction. Look for their stats such as days on market and percentage sale to list price. Top producers can add big dollars to your bottom line. The National Association of Realtors has released reports that reveal that agents on average achieve a 93% sale-to-list price, whereas For Sale By Owners on average achieve only an 83% sale-to-list price. This 10% premium on a $500,000 home could put $50,000 in your pocket.
When the market is hot, it’s easy to get lots of action at an open house, asking-price offers and maybe even above-asking offers In a down market, buyers will generally be slower to move as they feel they might be able to get a better deal if they are patient. Finding the best time to sell depends a lot on the local market. Check out this article on specific things to consider for buyers and sellers in the Chicago Market.
What are the pricing strategies?
In order to sell faster, many agents use a method called psychological pricing. A realtor prices a property below market pricing in an effort to drum up multiple, competing offers that drive up the eventual sales price of the home. Pricing the property too low can backfire if prospective buyers dismiss the property due to low price or it falls outside of their price parameters. Check out this great blog post from Ryan Roberts, which discusses how your pricing strategy can take psychological pricing into consideration.
Lori Ballen has a great article on the best practices. She discusses how the price should be stated during a real estate transaction. For example, she discusses how to make rounding work best for you, as a home is a significant price point she states that rounding should be kept to the thousands i.e. 279,999 should be displayed as $279,000
Supply and demand data or transaction volume data can be difficult to track down. There are some great resources at the NAR Website . You can gauge how much competition there is for a specific property. The best time to sell is when your property is listed in isolation so that more buyers are competing for your property. “Isolation” can help drive the price up when there is limited supply of properties on the market.
The number of days a property has on the market is a major data point. Statistics show that the first two weeks on the market is extremely important. If in the first two weeks there are 12 showings and no offers, this is a strong indicator that the property may be priced too high. While it’s hard to predict, the following ranges have been found to generally hold true. Consistent – showings & no offers means a property is likely priced about 3-5% over market expectations. A low number of showings indicates that the property is likely priced between 5-10% too high. No showings can indicate a price that’s 10% or higher above market expectations.
Sellers can use data about the potential revenue generating opportunities. You can use the real estate sharing economy by showing potential buyers how much income the property could earn. They could do so on sites like Airbnb, tripping.com, Flipkey, and VRBO. There are great options out there to validate the rates quoted for properties such as Beyond Pricing ranking solutions.
Another data point to consider for properties in major metropolitan areas is the Walk Score. This aggregates public transit information, Noise levels and sound pollution to rank neighborhoods and zip codes. Many buyers may be looking into a different kind of score. They can look up the Crime stats of a neighbourhood or zip code. All of these “liveability” scores can be used to evaluate price and value.
There is a lot of possible data to consider during a property transaction. A combination of all or some of the data points above can provide unique insights for individual opportunities. Data can be overwhelming, but with patience and the willingness to sort through it all can help you sell your property for a premium, or buy your dream property at your desired price. Feel free to reach out to us at Zimmerman Property Group. We’ll use our years of experience to help you cut through the data.