Seller Tips: January 2008 Archives
As of this morning there are 71 single family homes listed for sale in MLSPIN, the multiple listing service, with an average list price of $534,218 and an average days on market of 162.63. In 2007, 121 single family homes sold with an average list price of $519,082, an average sales price of $503,260 and an average days on market of 151.79.
The absorption rate, which is the amount of months it would take to sell all the properties currently on the market based on the last 12 months sales rate, at this moment for Foxboro is 7.04 months of inventory. Conventional thinking is when you get below 6 months the market favors the seller and over 6 months it favors the buyers. When the market was booming the absorption rate was around 2 months. If this trend holds were are getting very near the bottom of the market. Whether it plateaus at the bottom for a while we will have to watch and see.
If we segment the market into price ranges, let say for first time homebuyers, and look in a range from zero up to 400K which from my experience is the range most first time homebuyers look in, the absorption rate is down to 5.89 months. If this trend holds going forward then the lower end of the market has bottomed for Foxboro. If you're timing the market you should get ready to move soon to catch the bottom and take advantage of the low interest rates.
The absorption rate, which is the amount of months it would take to sell all the properties currently on the market based on the last 12 months sales rate, at this moment for Foxboro is 7.04 months of inventory. Conventional thinking is when you get below 6 months the market favors the seller and over 6 months it favors the buyers. When the market was booming the absorption rate was around 2 months. If this trend holds were are getting very near the bottom of the market. Whether it plateaus at the bottom for a while we will have to watch and see.
If we segment the market into price ranges, let say for first time homebuyers, and look in a range from zero up to 400K which from my experience is the range most first time homebuyers look in, the absorption rate is down to 5.89 months. If this trend holds going forward then the lower end of the market has bottomed for Foxboro. If you're timing the market you should get ready to move soon to catch the bottom and take advantage of the low interest rates.
The gap between the Bay State's home prices and destination area's home prices have started to narrow so it's not as advantageous for Bay Staters to move away. This has caused less people to leave the state and might lead to people coming back.
"Meanwhile, the up-scale states—California, New York, New Jersey, and Massachusetts—are seeing fewer residents leave for a lower cost of living elsewhere. And those states benefiting from the previous flight to affordability—Nevada and Arizona in the west; Florida in the south; and Pennsylvania and New Hampshire in the east—have shown slower migration gains or greater declines." according to Brookings Institution's "Housing Bust Shatters State Migration Patterns".
Stemming the tide of Massachusetts residents leaving the state is good news for those of us who own real estate and are planning on staying here for some time.
"Meanwhile, the up-scale states—California, New York, New Jersey, and Massachusetts—are seeing fewer residents leave for a lower cost of living elsewhere. And those states benefiting from the previous flight to affordability—Nevada and Arizona in the west; Florida in the south; and Pennsylvania and New Hampshire in the east—have shown slower migration gains or greater declines." according to Brookings Institution's "Housing Bust Shatters State Migration Patterns".
Stemming the tide of Massachusetts residents leaving the state is good news for those of us who own real estate and are planning on staying here for some time.
In the Boston Globe Real Estate Blog Rona Fischman tried to explain what good listing agents should do for sellers. Since she only works for buyers and not sellers she really only covered the basics. Below is my comment adapted from my "Seller's Benefit Statement" that she graciously posted to her blog entry. To see what she wrote and the other comments. Click here.
Hey Rona,
You only touched on the basics of what a good listing agent does.
Good listing agents market your property of which advertising is one part of it. Before you promote the property you need to decide what kind of buyer is most likely going to buy this property and then build your marketing plan to attract that type of buyer. A comprehensive marketing plan should have these elements in it:
1. A Competitive Market Analysis to position the property properly.
2. Determine beforehand the best type of financing for the property so the property conforms to that financing.
3.Home Enhancement and Staging
4.Estimated Proceeds the seller will expect from the sale.
5.Determine the "Salability Potential" of a property by preparing a salability checklist
6.Enter the listing in the Multiple Listing Service (MLS) and then have it upload to Realtor.com with an enhanced listing and upload to all the other sites linked to the MLS like Boston.com
7.Prepare Property Information Flyers
8.Put up a yard sign and directional signs
9.Internet exposure
10.Just listed postcards to appropriate people and target areas where your target buyer is living.
11.Office/Broker Promotion
12. Open Houses
13.Local Advertising
14.Progress Reports
15. Review and assist negotiating the purchase offer
16. Relocation Assistance
17. Provide a Sales Guarantee and Easy Out Pledge
Hey Rona,
You only touched on the basics of what a good listing agent does.
Good listing agents market your property of which advertising is one part of it. Before you promote the property you need to decide what kind of buyer is most likely going to buy this property and then build your marketing plan to attract that type of buyer. A comprehensive marketing plan should have these elements in it:
1. A Competitive Market Analysis to position the property properly.
2. Determine beforehand the best type of financing for the property so the property conforms to that financing.
3.Home Enhancement and Staging
4.Estimated Proceeds the seller will expect from the sale.
5.Determine the "Salability Potential" of a property by preparing a salability checklist
6.Enter the listing in the Multiple Listing Service (MLS) and then have it upload to Realtor.com with an enhanced listing and upload to all the other sites linked to the MLS like Boston.com
7.Prepare Property Information Flyers
8.Put up a yard sign and directional signs
9.Internet exposure
10.Just listed postcards to appropriate people and target areas where your target buyer is living.
11.Office/Broker Promotion
12. Open Houses
13.Local Advertising
14.Progress Reports
15. Review and assist negotiating the purchase offer
16. Relocation Assistance
17. Provide a Sales Guarantee and Easy Out Pledge
