Understanding Real Estate

How To Keep Up With A Changing Real Estate Market

by Lauren Peck

Folks listing homes for sale often worry that they're not maximizing the potential returns on the properties. It's important to keep up with a changing market. Fortunately, you can follow these 5 tips to stay current.

Monitor Similar Homes in Your Area

It's a good idea to scan through real estate listings in your area. Identify homes for sale that are similar to yours in terms of age, style, and locality. See what people are trying to sell home properties for and make some notes.

However, be realistic in the comparisons. Also, understand that the sale of one house for $750,000 doesn't presume yours will strike the same price. The goal is to get an idea of what the range of possible outcomes might be. You can then use that range to target your price.

Watch Local Housing Inventories

When you search for houses like yours, it's also a good time to check the broader market. Take note of how many houses are generally for sale. You can note how many compare to yours, too. This will give you a rough idea of how much the market is booming.

If the market appears to be red-hot, you might want to target a price that's closer to the high-end of your range. Remember, that price is a starting point, and buyers are welcome to negotiate if they feel it's a bit high.

Ask Around

Maybe a friend announced on Facebook recently that they're moving. If they owned their home, you may want to ask them how much it sold for. This will provide quick and reliable information about how well the market is performing.

Examine Multiple Sources

It's best to check prices on several websites. Also, the government publishes numerous reports monthly reflecting the state of the market. These are free, and your tax dollars pay for them, so don't hesitate to scan them and see what the trends are.

Don't Over-Analyze

One of the worst things you can do is inflict decision-making paralysis on yourself. While you don't want to leave money on the table, over-analyzing the situation and the market can leave you out of the market. If you see a good market around you, just focus on finding a good price range and setting a dollar figure for the house. Once more, negotiations will iron out some of the differences in pricing, so just get the process moving by choosing a price.