You recently read here about formulating your offer based on the information included in a CMA (Comparative Market Analysis). You can fine-tune that offer by applying current market trends. Trends may vary by region, state, city and even the neighborhood, so do your homework.
You and your agent can study a lot of available statistics- the CMA, local listings’ DOM (Days on Market), and list to sale price ratios. The CMA compares similar properties, while the DOM figure gives you an idea of whether you’re looking at a buyer’s market or a seller’s market (in which you’ll have more competition and less negotiating power). If possible, look at DOM for listings within a mile of the home you want to purchase-it’s that area-specific.
Let’s move on to the average “List Price to Sales Price Ratio” (LP:SP). Like it sounds, it’s simply a percentage based on how closely the final sales price corresponds to the price at which the home was listed. A house that sells for the asking price has a LP:SP ratio of 100%. So a house that lists for $175,00 but sells for $160,00 has an LP:SP of 91%.
Look at these ratios for the homes on the CMA that most closely match yours and you’ll have a sound basis for what percentage of the list price to offer.
The annual Northwest Washington Fair is going on right now in Lynden Washington. Stop by our booth and say hello to our friendly agents. Click on the link below to view the fair program.
1630 Westview Cir, Lynden 98264| MLS 645856 | $399,000
Lot 2, Mead Avenue in Everson also reduced in price and is available for $89,900 The 30,849 SqFt City Lot has the preliminary work done to be subdivided. Open pasture with clear views to the West. Come build your dream home or subdivide. Great opportunity for Builder or Developer.
Even with recent gains in the market, the concept of homeownership is still under attack. Owners feel let down by falling values, critics say the American Dream has become a nightmare, and others say renting is the best option right now. There is no doubt that many have suffered at the hands of bad lending practices and economic turmoil associated with the recession.
However…owning a home has Always been a huge part of the American Dream, and will continue to be so long after the current economic crisis and wave of defaults has passed. Our homes are a place of security for our families and for establishing traditions with our friends.
[%readmore%]No one can argue against the benefits that homeownership provides to our communities and to society in general. Homeowners have a higher level of self-esteem, education, and involvement in civic activities. Why try to tear down these fundamental truths simply because we are in a downward part of the always dynamic cycle of real estate?
The time has come to reaffirm the dream of homeownership, but in a more sober and accountable fashion. We should emphasize responsible ownership for the long term, which helps us and our communities achieve the common goals of financial and social well-being. Today’s naysayers will change their tune when the cycle rises again and you can count on that.
