How-to Monday: Competition
Sun photo
Sometimes a seller's competition is an exact duplicate house, but sometimes it's simply the variety of homes in the same price range. How can you tell if you've picked a good price range to compete in -- or, if you're a buyer, to look in?
It doesn't hurt to find out how many homes are listed and compare it to sales. A little tally for the metro area in December shows some interesting results.
Overall, the Baltimore metro region had about 1,800 home sales in December and about 18,000 homes that were listed for sale, according to Metropolitan Regional Information Systems. At that pace, it would take 10 months to get all the 18,000 homes from "for sale" to sold. The longer the time, the easier it is for buyers to make a deal if the owners really need to sell.
Everyone following along? OK.
Three price ranges did better than the metro average: $100,000 to $149,999 (eight months), $150,000 to $199,999 (seven months) and $200,000 to $249,999 (also seven months).
Three price ranges were right spot on the 10-month average: $250,000 to $299,999, $300,000 to $349,999 and $800,000 to $899,999. Yes, you read that last one right.
Just as the $800 range is an odd one out in the midst of the cheaper prices, the under-$100,000 range is an interesting one: 11 months. Perhaps people in the market for an under-$100,000 house can't qualify for a loan now, or perhaps they don't like the homes available for that price, or perhaps these properties are vying for attention from the now-much-smaller pool of investor-rehabbers.
Here's how the other price ranges turned out:
$350,000 to $399,999: 13 months
$400,000 to $449,999: 11 months
$450,000 to $499,999: 15 months
$500,000-$599,999: 14 months
$600,000 to $699,999: 17 months
$700,000 to $799,999: 16 months
$900,000 to $999,999: 19 months
$1 million to $2,499,999: 21 months
$2.5 million to $4,999,999: 98 months (one home sold, 98 listed)
$5 million and over: infinity. (Well -- probably not. But zero sold and 11 were listed.)
Curious to know what the months' supply looks like in your jurisdiction or ZIP code? Click HERE to go to Metropolitan Regional Information Systems' stats page, where you can get the numbers to do your own calculations.
Sign up for the At Home newsletter 
Comments
... or have a local expert come to your house with 12 other professionals and give you advice and feedback. When pricing a home it is important to get a local Realtors' advice, whether you use them or not. Place your house on a Realtor Caravan, a showing just for Realtors; they will suggest marketing tips, improvements and pricing. Collectively they know what's happening, the market trends and have seen most of your neighbors houses and competition.
Many of the services Realtors provide are free. They are often a part of your community, provide a lot of support and want to see it do well.
It never hurts to get an expert opinion.
Posted by: Christian Dunn | January 21, 2008 12:31 PM
Hey where are those condos at in that picture?
Posted by: Henry | January 21, 2008 1:14 PM
Henry, the homes are in Owings Mills. (I don't know where in Owings Mills exactly, since I didn't take the photograph.)
Posted by: Jamie Smith Hopkins | January 21, 2008 1:30 PM
Jamie if you can let me know, I'd appreciate it. THanks!!!
Posted by: Henry | January 21, 2008 8:03 PM
Your stats are right on, however, all sellers must know that if their home is priced correctly in this marketplace...that it will sell quickly. Price is the number 1 factor today!!!
Posted by: Mike | January 22, 2008 7:59 AM
Sure, Mike -- that almost goes without saying, though I did have an earlier How-to Monday post about that. Here's the link: Pricing
Posted by: Jamie Smith Hopkins | January 22, 2008 8:28 AM
OK, Henry, I finally tracked down an answer for you: The photograph shows Greenwich Place, a new housing development opposite Owings Mills Mall.
Posted by: Jamie Smith Hopkins | January 22, 2008 8:56 AM
Jamie, I liked your pricing article, however I will disagree with Pat about using comparables. You have to use comparables, because thats exactly what the bank will be using for the appraisal. As an agent, you must focus on the last 3 months more than the normal 6 months like in the past. The banks are tightening up, but they still want to loan money.
Posted by: Mike | January 22, 2008 10:02 AM