Sellers looking to sell a home in San Jose, California are in for a surprise, this thriving affluent city has been turning property at record speed at comparable prices. Of course, most homes are sold by realtors and listed in the San Jose MLS. Selling on your own has some benefits, but it’s still not an easy task working alone. If you’d like to give it try, here are 7 Rules for pricing your home correctly within the current market, and get listed for viewing by realtors and potential buyers.
1. Research
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Pricing is a process using past indicators to predict the future. Let’s start where your live, you need to research recent sales data for homes in your neighborhood. It’s relatively easy to do nowadays with the internet sharing so much good and sad information on real estate. Pay attention to the history of trends in San Jose and the rise and fall of appreciation rates. This information tells you the type of market that exists. If the market is hot with fast turnover rates, and sales are at listed prices, you stand a good chance of getting your asking price. If the market is sluggish, you need to stop and reconsider listing – if you can.
2. Comparable Properties
If you’ve started your research this makes sense as a valuable home pricing tool. Industry comps are prices for similar homes recently sold in the area. It gives you solid information on what’s selling and for how much. Before you list the home at a high price, you need to find several homes similar to yours pertaining to square footage, locations and conditions within the house. I suggest that you compare at least 2 other resources besides San Jose MLS for pricing comps, and at least the past 6 months. Look at the homes that have sold, not the ones still listed for sale. Closed sales tell you what the buyers are willing to spend to own a home like yours.
3. Buyers
Getting an accurate read on the market helps you have a price listing that will interest buyers. Some things you can do on your own and others, you need a professional. You did the research and now you need to get an appraisal of your home. The costs vary depending on where you live, but normally fall around $200-$300. This task is essential, when appraisers look at your home; they use comps and do the market research to establish a price for the property in the current market. Based on what you found and what they report, you can confirm you’re on track for pricing correctly. Professional reports are conservative findings without the emotional attachment you have with your home.
4. Stats
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Here are some recent stats on the San Jose market. Median sales price for homes through January 2016 was $730,000. Past history of this market, shows a 1.4% decline from the 3rd quarter of 2015. The best news is appreciation rates are up in San Jose. Average listing prices for San Jose homes increased to $771,000 at the end of December 2015. The news gets better the average square foot cost is $509 going into 2016. Translation, median sales price is $40,000 less than the average listing prices. This should give you an idea of where you home needs to be priced. If you’re still having difficulty in determining the price for your home, it’s time to ask for help.
5. Trends
There’s a mindset in the industry that sellers list high as a sign they are open to negotiations. Keep in mind, buyers have done their homework too, and if they’re working with an agent so has the agent. The last thing as a seller, you want to deal with are multiple counteroffers, so it’s critical that you set your price at acceptable market prices. Real estate is a tough business; buyers are looking for the best deals for high end property so don’t be offended with the low ball offers. Simply reject them.
Current trends in 5 popular San Jose neighborhoods have list prices ranging from the low $400,000 to the high $990,000. All 5 areas have increased week over week (W-O-W) with percentages ranging from 0.7 to 4.1. The movers and shakers in the area are listing properties from the mid $350,000 to 1.6 million with increases as high as 13% and -27% in one of the neighborhoods.
The current trends, look like a good market for high listing prices and fair market value for buyers interested in calling San Jose home.
6. San Jose MLS
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The MLS is both a resource for finding real estate information and a marketing tool. Realtors and buyers view the San Jose MLS looking for new listings, monitor older ones and keep up with the homes sold in the area. It’s a good idea to list your home in the same marketing publications and watch what happens –if the pros are using it, it works.
Here’s something that can happen, when your home is listed in the MLS. If a realtor or buyer already working with a realtor contacts you and you accept an offer– you are responsible for the commission being paid to the buyer’s agent. The good part, it’s only a partial since you are the seller, but the additional fees will come out of the final sales price from the home. While you’re working on determining a fair market price for your home, remember to account for partial commissions.
7. Neighborhoods in Demand
If you stick to these rules, you’ll be confident with the decision you’ve made in pricing your home for sale. In growing neighborhoods like San Jose, it really doesn’t hurt to talk to a realtor to make sure you are on track, especially if your home sells are quickly as the current market is reflecting.
