The purpose of this blog article is not to dissuade you from listing due to competition but rather point out signs. Of course ultimately when listing your home for sale the most important sign you're looking for is SOLD. That's only meant partly tongue in cheek! Of course an agent is going to look at "comps" based on your home's comparable neighbors that have sold and have similar square footage, beds, baths etc. But the other sign or signs to look for are ACTIVE. This of course is your competition.
Having recently had two listings in two different neighborhoods provided a very good and realistic example of competition and not just comps coming into play. The first listing was an honorable home off of Watt Avenue built in the 1950's. When we listed this home, there was not only a home two doors down that had been on the market for well over 3 months, but during our listing period within 2-3 a street radius, there were 13-14 other listings also within a 5% difference in asking price.
Meanwhile our other listing in Land Park, a noble home with old World Land Park charm had 14 homes to compete with across all of of Land Park proper and no real competition in it's price point. Needless to say, the Land Park charmer had 10 offers and our seller settled on 1 for 9% over list price. The home off of Watt Avenue, did sell however it required 2 subsequent price reductions.
So what's the point and purpose of comparing the two? When asking your real estate professional about your home's list price, ask not only how they arrived there, but ask how it will fare with other homes that are ACTIVE on the current market. Arriving at a sales price that's not only comfortable for the seller is one facet, but realizing where your competition is (price & location) and WHAT your competition is will allow you to more readily prepare yourself for the days ahead.
In this current market with a glut of pre-qualified buyers and a scarcity of listings in most neighborhoods, this is most definitely the time, but make sure it is most definitely the location. What do I mean by that? Make sure your head and shoulders above the competition. A fresh interior paint, refinish those hardwood floors, some fresh landscaping, planting of colorful flowers to make a listing pop are just a few of the ways to make sure your home gets noticed in some of the more competitive neighborhoods. This is the time, this is the town... be a part of it!!