HOW MUCH WILL A HOME REALLY COST?
Buyers, especially those who are first-timers, will often ask Coldwell Banker Gosslee agents how much money a home will sell for.
There are obviously quite a very variables in that discussion, but it basically comes down to a supply and demand question.
The fewer homes for sale – if there are a healthy number of buyers – is considered a seller’s market. The competition for a suitable home creates demand which leads to higher prices at the beginning and potentially bidding wars.
The reverse occurs in a buyer’s market where prices will be flat or lower at the start and the buyer has advantage traditionally because there are fewer people interested in that specific home.
Caddo, Bossier and Desoto Parishes are just about right in the middle. We have a 5.7 month supply of homes which is just shy of the 6 month benchmark considered a balanced market. The number of buyers equates well to the number of homes for sale so neither side has an advantage.
The price set by the seller when the home comes on the market is called the “list price.” Obviously, a home owner would like to sell their home for as much as they can. But the danger in overpricing a home is that is remains on the market for longer than it should and buyers begin to question its value and worth.
Coldwell Banker Gosslee agents work really hard with their sellers to set the proper price at the outset and use a variety of resources to help gauge the price. We use various tools including our proprietary CBx which utilizes big data to help us craft what is called a Competitive Price Analysis (CMA). By looking at several factors, including recent sales, we are able to suggest a price.
Sellers seem to be listening carefully to the advice they are getting from their agents in Caddo, Bossier and Desoto Parishes because homes are selling at 96% of listed price.
As an explanation, if a home is listed at $200,000 a buyer would expect to pay within 4% of that price - $192,000.
The buyer’s real estate agent will obviously help in the negotiations and counsel the buyer, but we thought this would help address a frequently asked question.
If you are interested in buying or selling a home or are considering a career in real estate visit Coldwell Banker Gosslee @