BAM! And So it Begins Again
Just when we thought things were stabilizing around here…. BAM
Today I read a post by a realtor where she had over 130 showings in a weekend and received more than 50 offers for her listing. Yup. Spring 2022 is officially here.
With the interest rates rising and the cost of goods increasing many would think the home sales prices would come down… but the opposite appears to be happening right now.
This graph reports the median sale prices for single family, detached homes in the 5 county Philadelphia area and we can clearly see:
1- The median sale prices are back up to the peak of last summer.
2- Buyers are once again paying over list price.
Keep in mind - these stats reflect the larger market. We also need to take a look at the specifics of smaller markets when estimating value because the Buyer's wants and needs change depending on the type of home they are looking for…
There is no one-size-fits-all….Every property is a new puzzle to figure out.
But, what I can say is that if you feel your home is in need of some repairs before listing….. Please consult with a realtor or an appraiser first….. Because right now, in this market, it's possible you may not need to lift a finger in order to get the best offer for you.
Also, on the opposite spectrum:
I have sadly witnessed first-hand too many homeowners sell their property for much less than what it was worth on the open market because they wanted to sell it themselves. They thought they were saving money but they were actually losing money.
How is this happening?
1- This market is changing day by day and homeowners are relying on dated public records.
2- Homeowners are relying on Zillow
3- Homeowners think they are getting a good deal because they are comparing the sale price to what they paid for it many years ago.
4- Homeowners are making decisions with their heart and not their head - selling to a neighbor or a friend of a friend often results in a significantly lower sale price than what the open market will offer. No judgement here - just encouraging you to be fully informed of the market value before making that decision.
So, if you are thinking about selling your home - the terms of the sale is probably one of the most impactful decisions you will ever make - do yourself a favor and hire a professional - either a Realtor to negotiate the best terms and/or an Appraiser to break down the facts so that you are properly informed and prepared. Your wallet will thank you :)
Wishing you nothing but the best for you and always happy to answer questions.
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