Monthly Archives: February 2011

Birmingham 2011 Home Sales: Market Thoughts

If you’re thinking of selling your home during 2011, does it make sense to sell sooner, rather than later?

This may be something to consider after listening to Tom Horn, an appraiser who specializes in home values in the Birmingham and Shelby Co. areas.

That’s because of what may be ahead in the coming months, which could make it tougher to sell later in the year.

On the other hand, Tom has been looking at price trends in the Birmingham and Shelby Co. area during the past year, and he has seen some changes from previously observed drops. For homeowners uncertain about trying to sell their properties, the trends—while not wonderful news—are actually a little encouraging.

We caught up with Tom to get his thoughts on what’s happening with home values here, and to ask what he thinks may be ahead. Whether you’ve been thinking about selling or buying a home in the Birmingham/Alabaster and Shelby Co. area, you may find Tom’s observations helpful.

Click the player just below…

…or click here if you’d like to download and listen to this interview on your personal listening device.

You can learn a lot more about pricing and trends from visiting Tom Horn’s Birmingham Appraisal blog, a great source of information on values and other appraisal-related news affecting the Birmingham and Shelby Co. area.

If you’re interested in knowing more about Tom’s services, visit his appraisal-source website here.

Tom is a good source of information on home values. He is even having folks who are thinking of selling their home call him in advance to appraise their properties … that, coupled with talking with an Agent familiar with the area, is a good way to know up front what your home’s ultimate selling price is likely to be.

Thanks, Tom, for the great information…

David

How Pricing Makes Or Breaks A Quick Sale

Real estate Agents are always preaching the virtues of pricing correctly for the market. Recently, we’ve seen a good example of the role pricing plays in determining how long it takes a home to sell.

Lake Forest, considered one of the Alabaster area’s nicest communities, is a good case for showing that Buyers are still around (despite suggestions you may hear to the contrary).

Like just about every other community you can think of in the Birmingham and Shelby Co. area, Lake Forest has seen its share of distressed properties (either already in Foreclosure or already facing it).

The owner of the home at 144 Red Bay Dr put the property up for sale in June, 2008, asking $297,000. The home didn’t sell, and was Foreclosed in October, 2010.

When the property came back on the market after being Foreclosed, it was listed at $224,900. Despite the new price, Buyers still weren’t interested. It took cutting the home’s price even further—down to $189,900—to get a Contract (the actual selling price won’t be known until after the sale closes).
144 Red Bay Dr

Does this mean all Sellers have to cut their home’s price by more than $100,000? Absolutely not. But it does show that—in the current market—Sellers have some major decisions to make when it comes to putting their home up for sale.

The biggest decision every Seller will make is whether or not they are willing to meet the Buyer on the Buyer’s terms. That may sound very fundamental, but there are still a lot of Sellers around who allow their pricing decisions to be affected by:

  • Emotions …”It’s the principle. This home should be worth a lot more.”; or by
  • Beliefs …”Since other nearby homes have similar asking prices, my price must be right.”
  • Emotions and beliefs like these are not your friend when it comes to getting your home sold.

    Your real friend toward getting a successful sale is the willingness to price your property low enough that potential Buyers will express interest soon after your home has gone on the market. This is not something many Sellers are anxious to do, given recent drops in home values. But those who do also typically realize another key fact about the current market: After they’ve sold their home and become Buyers again, the same market will be very much working in their favor, thanks to a large supply of properties available, as well as continuing low interest rates for financing. Buyers are getting some awesome deals these days.

    Buyer interest is one of the most valuable keys to knowing whether a home is likely to sell sooner, rather than later, or at all. If your home is priced attractively, you’ll know it by the amount of calls and showing requests you receive. If your home gets plenty of showings but no Offers, this is another important factor, suggesting that the price is still not where Buyers feel comfortable.

    If your home is on the market but the phone never rings, the silence should be deafening. It means Buyers are looking the other way, finding other properties they consider more attractive.

    David