SELLING YOUR HOUSE IN HOUSTON | WHO IS YOUR COMPETITION?
When your house is on the market you will always have some competition to go up against: other sellers. So there are a few important things to consider before we hit the ‘submit’ button and go live on the market. Let’s dive in!
START WITH THE IMMEDIATE AREA
When you first begin the thought of selling, you should know what’s going on directly in your subdivision. You not only need to check out pricing to see what others are selling for, but note the condition their house is in as well.
Another thing that you need to understand is how long it’s taking for a seller in your neighborhood to go under contract with a buyer. This is a key metric that Realtors use known as days on market or DOM.
Also, every single house in the neighborhood is NOT your competitor, unless every house in the subdivision is the same price. More than likely though, there are multiple price ranges for different buyers.
For example your neighborhood in Houston may have homes ranging from $400k – $750k. If your house is worth $750k, is the person listed at $400k really your competition? Probably not, because they are appealing to a different pool of buyers.
After you get an idea of what your immediate area is looking like, expand your research to the local area.
Let’s use Pearland for example. You have a rough idea of what your house is worth in your neighborhood in Pearland, now let’s check out the rest of Pearland to see what you are competing against. Why? Because buyers will look at everything that matches their criteria and price range, regardless of a certain subdivision. Wouldn’t you do the same?
I’m not saying to use comps for pricing on a house that’s on the other side of the city, but it’s still important to know what’s going on in your local market.
If you are curious about the comps in your neighborhood and how your house compares, you can submit your information for a free market analysis or visit this blog to read about how we run comps for your house.
This one might be a little difficult for you to do on your own. The agent you hire, whether it’s us or someone else, should be able to tell you the direction the market is heading and what current conditions look like for you.
Conditions like inventory levels, DOM, average sales prices, time of the year, and interest rates are all important to know and understand how it affects you as a seller.
It’s absolutely crucial you and your agent get the pricing right from the very beginning. Statistically speaking, the most action a home will see is within the first 2 weeks of going on the market and it tapers off from there.
First, we review the immediate area. Then we research the local area and note any competitors in the area and what their homes condition is.
From there we will price it accordingly. You don’t want to start too high, and you definitely don’t want to go too low and potentially leave money on the table. This is where thorough research comes into play.
Let’s review a quick scenario with you as a buyer. You have 2 identical houses for sale in Friendswood. One is in great shape with tons of upgrades and the other house needs some work, but is listed at the same price. Which house would you make an offer on?
You and your agent should be able to get the pricing correct from the beginning and develop multiple pricing strategies that match with your objectives and goals.
IS THERE TOO MUCH COMPETITION?
One thing to consider when researching your immediate area is how many houses are for sale at that time: your competition.
When does it become too much competition to go up against and is it really the best time to list your house for sale? Only you can answer that last question.
I don’t know your objectives or timelines to move, so for that reason I would advise you to contact us and from there we can develop a game plan together that works for you.
Competing against other sellers can be fun and exciting and stressful all at the same time. There are multiple strategies our team uses to outshine your competitors and to sell your house faster and for more money.
Give our team a call today or click here to schedule an appointment which can be either by phone or in person meetings.