The Right Timing Can Bring You Thousands More When You Sell
Ever notice how one home on your street sells well above asking price with a line of buyers out the door and an identical home comes on a month later and sits on the market for two weeks before finally selling at a reduced price? Every. Day. Counts.
It’s not always about the house. It’s also about timing the market well. In a world where potential buyers know how long you’ve been on the market down to the minute, being on the market a nanosecond longer than expected can be painful for any seller, financially and otherwise. Statistically, at mainstream price points, prices seem to peak around Day 7 and begin to slide downhill after Day 10.
How to time the market in a nutshell.
Avoid coming to market during major holiday weeks. Potential buyers take vacation too—and the fewer buyers out there looking in those precious early days, the lower the likelihood you’ll sell in the first 10 days. Look to come on the market a few days after typical vacations are over to allow buyers to re-engage in the search process. Avoid coming to market when a similar house in your neighborhood has just listed and not yet sold.
The laws of supply and demand would dictate that when supply appears abundant, demand diminishes—and the days tick on by. Even if you are by far the better house and at a better price, you might still be hurt by the curiosity around why everyone is selling now.
Avoid coming to market during bad weather or local events. Like coming on market right smack in the middle of graduation week, listing when everyone’s attention is on something other than home shopping is likely to miss the mark big time. Even if you were all set to list on a particular date, it might be better to take a deep breath and wait until the storm passes.
Do come to market when you notice an absence of great listings for sale in your price range and neighborhood. Buyers will likely feel that void too and be chomping at the bit for the next great home to come along. The chances of a perfect match between a solid buyer and a reasonable seller are best in this zone.
This is especially true if your home has challenges (outdated design, deferred maintenance, busy street, steep slope, etc.) that would make it difficult to compete with other homes out there. On the flip side of that coin, if your home is exceptional, you want to be on the market during peak season when buyers can size up your home to the competition and appreciate how much better your home is. Buyers will pay handsomely for turnkey quality when they can clearly see the difference. Come on when there is nothing else to compare to and your beautiful amenities might not see their full value potential.
The best days to come to market are Tuesday, Wednesday or Thursday. This allows for showings and open houses on evenings and throughout the weekend. If you are doing an offer review date, the best day to review offers is Monday or Tuesday. This gives buyers ample time to see your home, conduct their due diligence, complete a home inspection and sewer scope, and get their financial documentation together—all before they prepare an offer.
Final thoughts.
Look at the holiday calendar and local school district calendars to guide you toward best weeks to come to market. Don’t forget to check in big political and sporting event dates too.
Decide whether your home will shine against the competition, or be the wallflower, and adjust your timing based on real-time competition.
Of course, an outstanding listing broker can help you choose the most favorable date to bring your home to market. They analyze the market consistently and know exactly what indicators to look for. Still have questions? Contact one of our knowledgeable brokers for assistance with determining the best market timing for your home.
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Evaluating Waterfront Property Values
While supply and demand clearly play a role in establishing the value of a waterfront property, several unique elements overshadow the typical supply divided by demand equation.
The first one is rarity. Examples of this include:
- point properties—waterfront at the tip of one of our few natural points—with more expansive water frontage and street privacy
- parcels with extended front footage—homes that have far more waterfront feet than the norm (i.e. 180 front feet versus a more typical 60-80 feet)
- iconic properties—homes that have significant owners or histories
As with all real estate, location is a critical factor in assessing waterfront value. Any given property will have a value adjustment based on where it sits on the map and how the surrounding properties influence it. You can’t establish value without first determining the range of values for that location. When there are few comparable recent sales in a given location we often separate land value from the house value, compare them separately to other sold properties and then determine their combined value.
Waterfront access and amenities, which affect how you can use the waterfront, are an important consideration. This includes topography, dock, water depth and exclusivity. Higher value is generally given to:
- no or low bank waterfront with walk out access
- expansive views unhindered by natural obstacles or man-made structures
- large dock structures in good condition and/or boat houses that can no longer be built
- locations with higher water quality and/or deep-water moorage/access
A waterfront home’s setting also plays an essential role in its value. Homes most in demand include those with:
- an estate-like feel and additional privacy
- comfortable road access and parking
- sunny exposure
- larger (useable) lot square footage
- preferential positioning of the home and windows to capture views from most rooms
- remodel/rebuild-slated homes that have good construction access
Last, but not least, is the structure itself. While many waterfront buyers chose to make substantial changes to put their signature on their home, many still prefer turnkey homes with desirable floor plans and amenities. Because desired amenities change over time and the typical owner/buyer can usually afford to create what they want, waterfront homes tend to see the wrecking ball far earlier than non-waterfront properties.
In summing it all up, waterfront value is affected by many different criteria with supply and demand often determining how quickly a home will transact. The fewer potential buyers for a given price point, the longer the market time will typically be. That said, many waterfront buyers spend years waiting for the right combination of personally-desired features and amenities to come to market—making the demand less predictable than in other real estate arenas. This explains why you might see an expensive, rare waterfront property transact very quickly while similar homes sit on the market for years. Another old saying might sum up waterfront value best, “Beauty (and value) is in the eye of the beholder.”
Valuing waterfront is far more complicated than it looks. Following a process to arrive at value lessens the risk of overlooking key elements. Utilizing a knowledgeable waterfront appraiser or local real estate broker is a savvy strategy when valuing any waterfront parcel or shared waterfront parcel.
Find a Home | Sell Your Home | Property Research | Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2020 Windermere Mercer Island.
How to Determine the Value of Shared Waterfront
The concept of shared waterfront incorporates many different waterfront-sharing situations. Establishing the value of the share isn’t as simple as dividing the overall value of the waterfront parcel by the number of shares…although that’s a good start.
The term “shared waterfront” has been used to describe everything from a private parcel shared by two owners to one shared by an entire private community of hundreds of owners. The value, as you can imagine, is much different in each of these situations.
Valuing the Waterfront Parcel: Establishing the value of the shared parcel itself is the first step in determining the value of a share. Like assessing the value of private waterfront, its rarity, location, waterfront access, maintenance cost, and amenities like docks and available moorage all play a role in determining value when compared to like parcels.
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- Rarity: Waterfront shared by only a few parcels is much harder to find than a private community beach shared by many parcels. Rarer still is one with a dock and deeded moorage.
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- Location: Value will be influenced by where it sits on the map and the properties surrounding it.
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- Waterfront Access: Being able to easily walk to the shared waterfront adds to its usability and value. If driving is necessary to access it, is there readily available parking? Can you easily launch watercraft? If not, where is the nearest launch access? What limitations on access exist?
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- Maintenance: The cost of maintaining the parcel of land and any docks, bulkhead, and access trails or roads is a factor in valuing a share. What is the present condition of these features? What are future anticipated expenses? How are these expenses shared or assessed?
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- Docks and Moorage: A dock adds considerable value to a waterfront parcel by expanding its use and functionality. Temporary, rotating and deeded moorage each add value to both the shared parcel itself and to the individual parcels based on how they benefit.
Valuing Each Individual Share: Once you have determined the value of the waterfront parcel, looking at the number of shares is the next step in determining each share’s value. But, not all shares are created equal. Some will have better access than others.
Often, limited by dock size, some parcels will have deeded moorage while others won’t. And for those with deeded moorage, some will be premium spaces while others are less than ideal. Some shares utilize an annual lottery or rotation system for assigning moorage.
Weighing the value of the individual share’s amenities and benefits is essential to understanding how the share contributes to the value of each individual property. This establishes each share’s percentage of value in the waterfront parcel.
Valuing shared waterfront is far more complicated than it looks. Following a process to arrive at value lessens the risk of overlooking key elements. Utilizing a knowledgeable waterfront appraiser or local real estate broker is a savvy strategy when valuing any waterfront parcel or shared waterfront parcel.
Find a Home | Sell Your Home | Property Research | Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2020 Windermere Mercer Island.