The Factors That Affect Home Pricing

If you ignore certain factors, your home may go unsold on the market. Here’s what you need to keep in mind.

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When it comes to correctly pricing your property, there are a few factors that can play a role in your decision. The first one is your competition.

How many properties are on the market near you? If there are few homes like yours in the area, you’ll see your value and price increase. However, when a wide range of inventory comes onto the market, it’ll adversely affect your property’s value.

Another factor is interest rates. When rates increase by 1%, buyers’ affordability can decrease by 6%. When rates fluctuate, it’ll affect your pricing.

If your property is overpriced, buyers won’t even look at it.

When you put your home on the market, 60% of your marketing plan is determined by pricing your home correctly. If it’s overpriced, buyers won’t even look at the property. On top of this, agents will use your property to leverage the sale of a cheaper home with the same value. If your property expires and you list it again down the road, it likely won’t sell for what it could have if you’d priced it correctly from the outset.

Lastly, the National Association of Realtors says that your home will have the most exposure within the first three to four weeks of being listed. Keep that in mind before you think of setting a high price that wards off buyers.

If you have any questions about this or any other real estate-related topics, feel free to reach out to me at 978-256-3306. In the meantime, I look forward to hearing from you soon.

6 Fast Facts About Real Estate You Might Find Interesting

Today I’ll pull back the curtain a bit on the real estate industry and share some interesting statistics about it.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

Here are six statistics about the real estate business I think you might find interesting:

1. 93% of all homes sold nationwide are sold by only 7% of the agents. The reason for this is many “agents” obtain their real estate license not to actively work in the business, but rather so they can make a few extra dollars in the event that a friend or family member needs to buy or sell a home somewhere down the line.

2. 60% of your home’s marketing plan is determined by pricing your home correctly.

3. Real estate commissions range from 4% to 10% of the sale price. A 10% commission typically happens with large commercial acquisitions, while a 4% commission is usually a discount rate agents offer to sellers.

A 10% commission typically happens with large commercial acquisitions, while a 4% commission is usually a discount rate agents offer to sellers.

4. The average transaction, from inception to closing, takes a minimum of six weeks.

5. The average agent sells 2.3 homes per year.

6. 87% of all licensees can’t afford the $200 reinstatement fee. 

If you’d like to learn some more interesting real estate statistics, you have any questions about our market, or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.

Forge Your Path to Financial Independence Through Real Estate

Do you want to become financially independent? If so, becoming a real estate investor may be the right next step in your life.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

Financial independence is an economic indicator suggesting that someone is no longer dependent on income from a job requiring them to trade their time for money.

Financially independent individuals generally draw on passive income sources, and today I’d like to highlight how you can achieve this status for yourself by investing in real estate. After all, financial independence is, in essence, financial freedom. It allows you to spend time doing the things you enjoy.

Financial independence is, in essence, financial freedom.

Though real estate is cyclical, the overall trend over the last 50 years has been one of considerable appreciation. In fact, in our current real estate climate, investing in just half a dozen properties could bring you into the realm of financial independence.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.