Listing Courtesy of PATTERSON-SCHWARTZ REAL ESTATE
A North Bethany listing can be a smash hit when the pictures show a property that’s cosmetically appealing, the copy rings true, and the details hit the sweet spot where features and value are a match for the best the area has to offer. But it still might not be as effective as it should be if one other detail is a little bit off. It’s a detail that can cause qualified buyers—the ones who should be a home’s most interested prospects— to miss the whole show.
I suppose that calling that part of a North Bethany listing a “detail” is like calling the end score of the NBA’s final playoff a detail—or calling the final vote count in an election a “factor.” It may be just one element of many, but it is uniquely important. In a North Bethany listing, it’s often the first element that shoppers specify when they’re picking which area homes they will consider. If it’s not thoughtfully calibrated to fall within the parameters they name, the results may suffer considerably.
Of course, the “detail” we’re talking about is the price on the listing, and choosing the “right” one is the object. We’re looking for a number that will help a home sell quickly at the highest price possible. If the neighborhood comps—the prices paid and asked for nearby area homes with similar features—were all that mattered, coming up with the most suitable listing price would be a cut-and-dried affair. But there are other factors that need to be taken into account. Some are easy to determine, some…not so much.
· the North Bethany residential market is a moving target, sometimes building from a lower level, sometimes echoing the latest transactions, sometimes losing momentum.
· competitive North Bethany listing prices reflect either other sellers’ best estimates of that market for their properties, or else their personal opinions of what they think the market should be--but there’s no way to verify which!
· the final selling price of any home is determined not only by the seller’s situation, but by the buyer’s, also, which is a factor which cannot be determined in advance.
That’s why there is no universally agreed-upon formulas to rely upon, and since there is no way to determine what outcome would have resulted if a different price had been chosen, there’s also no way to verify after the fact if the absolute “best” one was chosen—even if everyone considers the sale a great success! Web titan Zillow says, “if the home sells within a few days of listing, chances are you listed too low” yet if a higher price had been chosen, causing that home to linger for months on the market, it wouldn’t have been listed too low. On the other hand, if the listing price were set to court multiple offers, a quick sale could mean a higher selling price was achieved. There’s simply no way to know for sure.
Put it all together and you have to figure that arriving at the right listing price is really more of an art than a science. I help clients by pooling my extensive North Bethany experience, up-to-the minute market knowledge, and detailed examination of the property’s unique attributes to suggest the range of listing prices I judge most likely to achieve the Holy Grail—a quick sale at top dollar! If you’d like, we can get together for a no-obligation discussion of your own property’s listing prospects. It’s a great reason to give me a Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.
If you find yourself in a quandary over whether to jump into buying a home now or waiting for a clearer signal that the time is right, there is one method you can use to inject some hard numbers into your decision. It’s called the CTW.
CTW stands for “Cost to Wait.” It attempts to approximate the money saved or lost if buying a home today is postponed until a later date. The most reliable CTW calculations are based on what have proved to be the most accurate projections. For this example, we rely on quasi-governmental mortgage guarantor Freddie Mac for interest rates and CoreLogic for home pricing data projections.
Since projections are most accurate in the nearest term, the best example will be a simple one-year CTW. This one seeks to calculate the difference between buying a home in Delaware right now versus the same time next year.
Freddie Mac projects that from December’s annualized average PMMS (Primary Mortgage Market Survey) rate of 3.99%, a year later that rate is projected to rise to 4.5%. As for typical U.S. home prices, CoreLogic’s most recent projection is a 4.7% annual increase—similar to the past few years.
Let’s take for our Delaware example the Census Bureau’s U.S. new home sale price—December’s median was $335,400. At that price, assuming a 10% down payment, its 30-year mortgage at December’s rate resulted in a monthly payment of $1,439. If the assumptions prove true, by next January, the cash required for the 10% down payment will have increased by over $14,000—and the monthly mortgage payment would now equal $1,601(a monthly Cost To Wait of $162 per month).
Although that CTW may seem manageable, standing back to take the long view is a different story. For instance, by the time the mortgage has been fully paid, the entire CTW comes to more than $72,000—and that’s just for holding off for 12 months. Imagine what the CTW would be for waiting several years…or for a decade!
Although nobody can say for certain what the future will bring, it’s also true that over the long haul it’s likely that residential real estate will continue to do what it’s tended to do since time immemorial: grow more valuable. Especially given today’s still-historically low mortgage interest rates, the upshot is that buying the Delaware home of your dreams could very well be at its most economical right now.
I hope you’ll give me a call to see all the great buys currently available in Delaware. As the CTW measure illustrates so well—why wait until spring? Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.