When meeting with midtown Tulsa home sellers, Realtors will bring comps (comparable sales) to review in order to establish a list price. Even more thorough Realtors will additionally provide an Absorption Rate Analysis which is helpful in establishing a list price.
Let’s say we have review home sales in your neighborhood and establish that homes of similar size in similar condition are selling for $190 per square foot. You can see that homes around you have taken anywhere from 2 weeks to 2 years to sell.
If it appears that you should list at $850,000, let’s go one step further to look at an Absorption Rate Analysis for homes in that price range in the general midtown area.
Criteria: Subject property is east of Woody Crest subdivision, and closer to Harvard than Lewis. Size is 4500 square feet and home was built in 2008.
My first analysis is of homes sold in midtown – mapped from 15th to 41st, from Riverside to Harvard, with a list price of $750,000 to $950,000. There’s no need to add a home square footage value in this case, because there are no 1800 square foot homes selling in that price range.
A quick glance for activity in the past six months will show 23 active properties, 2 pending properties and 5 closed properties. The pending and closed properties total 7, showing that 1 home is selling per month in this price range. With 23 properties currently for sale, this represents almost a 2-year supply of homes in this price range. So when you become the 24th competitor, you must decide where to price your home so that you will be the next one picked!
But, this analysis does not reflect that your home is newer construction, so let’s modify that search. If we narrow the search to include homes built in the year 2000 or after, the result is 9 active properties for sale, 1 pending property and 2 closed properties.
And because we are doing this research in April and going back only six months, we are picking up data from winter months. To humor myself, I’m going back one year to see whether/how those results change.
And change they do! We still have the same 9 active properties for sale and the same single pending property. But the closed properties increase from 2 to 11! Combining the single pending property and 11 closed properties, we can estimate that newer construction in midtown Tulsa is selling at 1 property per month.
Again, becoming the 10th competitor, where do you want to price your home so that you will be the next property selected by a prospective Buyer?
Midtown home Sellers and Realtors can learn a lot from the detailed research of comparable sales and an absorption rate analysis. Reviewing the most recent comps, I see several properties for sale that have been on the market almost two years – ouch!
It always is worth our time to read the description and look at photos of those listings to determine why they haven’t sold and decide whether or not they are truly our competition at this point.
So, many factors go in to establishing an appropriate list price for your midtown home for sale, but the one thing I can assure you of is that it pays to get it right from day one – versus multiple price reductions and extended days on market.
If I can assist you in evaluating the worth of your property and discuss my marketing plans, please do call! Midtown Tulsa is the best little corner of Tulsa – I know because I live here! 918-852-5036
Content written and published by Lori Cain.