A homeowner can make all the necessary repairs to their home, clean it, stage it, maybe even remodel it. But there are some factors that may impact the eventual sales price of Carroll County homes that are out of their control. So, regardless of how impeccably the home has been maintained, and despite its ideal location, one or more of these circumstance may rear its head and dash those dreams of riches at the closing table. Let’s take a look at three factors that can affect what homes sell for in Carroll County.
1. The condition of the current market
You’ve no doubt heard real estate markets referred to as a buyer’s, seller’s or balanced market. A buyer’s market occurs when there are lots of homes for sale and few buyers competing for them. Since the buyer is in the driver’s seat, prices tend to stagnate or fall in this type of market. When the inventory of available homes is tight and there are many buyers seeking homes, we are in a seller’s market and home prices rise.
Currently, in Carroll County, as well as many other parts of the state and country, the market is a seller’s market. This is because there is high demand from buyers, with a shortage of homes for sale.
So, what creates these micro-markets? Many factors affect both national and local housing markets, chief among them is the strength of the economy. When times are good, consumers have money to buy homes and home prices typically increase. In tough times, when unemployment is high and incomes stagnant, the real estate market will feel the pinch.
Then, there are interest rates. When they rise, many buyers are priced out of the housing market and when they fall, folks clamor to buy homes. Mortgage rates have remained low and affordable. Low rates continue to encourage buyers to find a home to purchase. Therefore, the overall strength of the economy may help dictate the eventual sale price of a home in Carroll County and the surrounding area.
2. Neighborhood changes
The neighborhood, and the surrounding area, may look nothing like it did when the home was purchased. Even the most careful research performed before committing to buy a home can’t foresee future zoning changes, the neighbor that builds an extra story on his home and blocks your view, or the sex offender that relocates to your neighborhood. All of these events can negatively impact a home’s value and, subsequently, how much it will sell for.
Suppose a change in zoning allowed a dump or landfill to be placed near a particular neighborhood. Nearby home values will drop by as much as 7.3 percent according to Business Insider’s Mandi Woodruff. A power plant will ding the value from 4 to 7 percent, a sex offender as a neighbor will drag down a home’s value by up to 12 percent and, woe to you if a neighbor forecloses because, according to Woodruff, the national average loss of value of nearby homes is $7,200.
Now, some neighborhood changes should be applauded, at least by nearby homeowners. There’s even a name for the phenomenon: The Walmart Effect. The name typically describes the economic impact on local businesses when a big-box store, such as Walmart, moves into the area, but it’s been found to apply to home values as well. So, if a Walmart is near the neighborhood, rejoice – you may just get a 3 percent increase in home value, according to a study by the University of Chicago and Brigham Young University.
And cheer loudly when you learn that a Starbucks is coming to town and hope that it’s within walking distance of your home. Real estate portal Zillow found that between 1997 and 2014, the average increase in home value nationwide was 65 percent. Homes within walking distance of a Starbucks, however, saw a hefty 96 percent increase. Add Trader Joe’s and Whole Foods to the list of please-come-to-my-neighborhood” businesses. If they do, your home may see a 17.5 percent increase in value.
3. Your real estate agent
While pricing a home for sale in Carroll County isn’t rocket science, it’s also not something the inexperienced can do and meet with success. It takes years to learn how to properly research a real estate market, to learn how to find truly comparable homes and all of the various other factors that go into determining a home’s current market value. If the listing agent comes up with the wrong price, the bottom line is impacted. Overpriced homes are notorious for eventually selling for far less than expected.
Buyers’ agents know how much homes in a particular area are worth and won’t show their clients overpriced homes. So, they sit on the market. The listing becomes stale and agents and buyers think there must be something wrong with the home. Underpricing is also a gamble. Sure, some agents may tell you that it will create a bidding war, but what if it doesn’t? Are sellers in Carroll County really willing to take rock-bottom dollars for their home?
After pricing a home, the number one job of a listing agent is to market the home to find the buyer who will pay the most amount of money the market will bear. Did you know there is more to marketing a home than putting a sign in the ground and the property in the multiple list? Marketing not only requires know-how, but money as well. Ensure the agent you hire not only has a marketing budget but also has a robust marketing plan.
The phrase “you get what you pay for” is very true when it comes to selling a home in Carroll County. Do you really think “discount” agents market properties the same way other agents do? Do you really believe agents who work for a lower commission will work just as hard as the agent who works for a higher commission? Agents who are willing to discount their services are also willing to sell a person’s home for a discount price. Ugh! Some agents will provide bare bones service, which is not a good way to sell a home in Carroll County. Sellers want their home sold for the most money in the shortest amount of time. When deciding to sell a home, homeowners are wise to hire the agent who knows the neighborhood, knows the current market, and knows how to sell in the shortest amount of time for the most money. Choose wisely!
Looking for homes for sale in Carroll County? Learn more here.
Thinking about putting a home up for sale in Carroll County? Want marketing that beats the rest?Learn more here.
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