The inventory is at an historic low and prices are increasing. However, how should you price your property? Most importantly, you need to look at what has sold within the last 3-6 months and take an average sold price of similar homes (that might be challenging to do if you are trying to sell on your own or ask your agent for the more accurate information) You can price a property anyway you want, but “how high” is the big question. Yes, we all know the market has improved drastically, but are you looking to chase customers or do you want them to chase after your property. It boils down to correctly placing a number that will not scare off or lose customers that would have bought, if you assigned an amount that was based on proper research and accurate information. You obviously are looking to create a “feeding frenzy” when you put your home on the market, but pricing it too far away from the real market value will only create a “ricochet affect”, whereby they pass your home and buy another somewhat similar home in the area. However, pricing it where the market is, will surely provide you the traffic you are looking for leading to an offer and a sale.
The following graphs are courtesy of KCM (Keeping Current Matters) which I subscribe to and has been a very good indicator of past, current and future trends. Obviously, nothing is ever guaranteed, except, “birth, taxes and death”, as the saying goes. Pulsenomics gathers the information from the expert opinions of over 100 economists, real estate professionals, investment and market strategists, throughout the country and compiled into a understandable graph/survey. You can make your own judgements as to whether or not it appears reasonable, as to where this market is heading. These surveys were done in the second quarter of 2015. The issue with the Long Island areas, is that the population is getting older, many are staying in place and making their homes, handicap accessible. They spend the winters in Florida or a warm region and then come back, so as they have told me “I will let my kids worry about selling the home, when I am gone.” Unfortunately, Nassau County is not growing anymore land, so whatever the number of existing homes there are, that’s it. Many move up buyers cannot find the next place to call home, for many reasons: prices & taxes too high, the available inventory of new homes has not caught up with demand, not the right location, school district, too far from their job or business, etc. Most important, more people are leaving New York than are relocating here, although Governor Cuomo is trying to help by offering no income or real estate taxes for 10 years for businesses that come to New York State.