Iowa City Real Estate Blog

What do you think the chances are of your home selling at an open house? Probably not great. At least not here in the Iowa City area. (I represent sellers in the Iowa City real estate market and can only speak for my area of course). Selling a home is all about getting the right buyer in the right home at the right time. Seems to me the stars need to be aligned just right for all of that to happen on a day that you and your agent choose! 

Does that mean if you have a home on the market you shouldn't bother with open houses? That depends. Can you expect a lot of buyer traffic? Will it mess up your day completely if you have to vacate the property for two hours on a Sunday afternoon? Those are the things you should look at. (Not necessarily in that order).

Now what does buyer traffic have to do with anything you ask yourself? Well, we're assuming THE buyer is unlikely to come through your home on a random day this month, but the more people that do come through, the better the chance is that word gets out that your house is for sale. The whole idea of marketing your home is to make sure as many people as possible know it's for sale. Don't underestimate word of mouth. It's as good a tool as any in our marketing tool box. While I'm on the subject, have you told everyone you work with that your home is for sale?  And the folks at church too?

Is holding an open house a good return for the effort? Maybe. Maybe not. That would depend on how much of an effort it is for you. Your agent is usually happy to hold open houses for you. The question becomes is it a major inconvenience to you to vacate your home for the afternoon? If the answer to that question is yes, don't do it. You work hard. You earned your weekend, so enjoy it. If you on the other hand are out and about anyway, because you have multiple activities outside the home, then go for it. What have you got to lose?

So who really benefits from open houses anyway? The easy answer is that buyers just love to browse homes - Especially in spring time after a long cold winter! (Hence the timing of this post). Comparing homes and "seeing what's out there" is the favorite response when I ask visitors to my open houses. We Realtors also benefit from open houses. Even if a buyer doesn't buy your home they may work with us to buy a different home. It doesn't come up all that often, but it does come up.

Ultimately Open Houses are very hit and miss for everyone involved - Buyers, Sellers and Realtors. Will you sell your home at an open house? Probably not. Will it still be worth it? Maybe... 

If you're thinking of listing your home in the Iowa City area, give me a call. I'd love to show you what I do to market your home to get it sold.

Coralville Home Sellers Market Update November 2009

It's coming to the end of the month and almost time for my monthly real estate market report giving a general picture of how the market is trending in Coralville. As we are going through a time of transition I figured it would be a good time to put together a few numbers with home sellers in mind. If you have your home listed right now, or are thinking about listing it, then the idea is to look at the real estate market from your perspective.



17 Homes sold in Coralville November 1 - November 23

That's a 31% increase over last year. 13 homes sold in Coralville in November 2008

7 of the homes sold were priced below $200,000. Coralville bucks the trend of both Iowa City and North Liberty in that there is a higher percentage of higher priced homes sold than lower priced homes.

Average sale price: $211,163

Average Days on Market: 96


Active Listings: 183

Absorption Rate: 6.9 Months (Here's an explanation of how the absorption rate is calculated if you need it).


Coralville has stiff competition when it comes to home prices in Iowa City and North Liberty, especially when it comes to lower priced homes. In a price driven market where buyers are looking for deals this means if you're thinking of selling your home in Coralville, you really need to look at the bigger picture before you list your home for sale. The new tax credit for repeat buyers  should impact the Coralville market in a positive way, although at this point it's a little early to tell. The first time homebuyer tax credit did not impact Coralville in any significant way, so I'm not going to stick my neck out on that one!
 
There are so many nuances when it comes to selling a home. If you are thinking of selling your home in Coralville in the near future and would like to talk about your specific situation, please contact me @ 319-400-0268.

North Liberty Iowa Home Sellers Market Update November 2009

It's coming to the end of the month and almost time for my monthly real estate market report giving a general picture of how the market is trending in North Liberty. We are in a time of transition so I figured it would be a good time to put together a few numbers with home sellers in mind. If you have your home listed right now, or are thinking about listing it, then the idea is to look at the real estate market from your perspective.



45 Homes sold North Liberty November 1 - November 23

That's a 50% increase over last year already, (and we still have a few days left in November). 30 homes sold in North Liberty in November 2008.

39 of the homes sold were priced below $200,000. (A pretty good sign that it's still the first time home buyer that's driving the market in North Liberty).

Average sale price: $150,807

Average Days on Market: 111


Active Listings: 252

Absorption Rate: 4.7 Months (Here's an explanation of how the absorption rate is calculated if you need it).


North Liberty remains a hot tip in the area. In fact with 4.7 months absorption rate, North Liberty is trending towards a sellers market and with the new tax credit for repeat buyers there's a good chance this trend will improve even more in the coming months. That's the good news. Even in North Liberty though sellers can't afford to be complacent. We still have a price driven market place. When you list your home for sale you will do best if you keep that in mind.

There are so many nuances when it comes to selling a home. If you are thinking of selling your home in North Liberty in the near future and would like to talk about your specific situation, please contact me @ 319-400-0268.

Iowa City Home Sellers Market Update November 2009

It's coming to the end of the month and almost time for my monthly real estate market report giving a general picture of how the market in Iowa City is trending. As we work our way through a time of transition I figured it would be a good time to put together a few numbers with home sellers in mind. If you have your home listed right now, or are thinking about listing it, then the idea is to look at the real estate market from your perspective.



Homes sold in Iowa City November 1 - November 23: 49

That's an increase of 58% over last year already - 31 homes sold in the entire month of November 2008.

33 of the homes sold were priced below $200,000, the remaining 16 obviously above.

Average sale price: $186,263

Average Days on Market: 104


Active Listings: 530

Absorption Rate: 7.2 Months (Here's an explanation on how the absorption rate is calculated if you need it).


Home sales are up significantly for the month. With the new tax credit for repeat buyers there's a good chance this trend will continue and improve in the coming months. As a seller though you can't afford to be complacent about that. We still have a high inventory of homes on the market, so buyers can afford to be picky. When you list your home for sale you will do best when you keep that in mind. Your home needs to be priced right and look spectacular to get a buyers attention in the current market. We haven't made the transition to a sellers market so far, so nothing's changed there just yet.

There are so many nuances when it comes to selling a home. If you are thinking of selling your home in Iowa City in the near future and would like to talk about your specific situation, please contact me @ 319-400-0268.

Iowa City Real Estate - Selling a Home in Iowa City - A couple of reasons why now is a good time to list your home for sale

Have you been wondering lately whether now is a good time to sell your home? It might be. If you look at the big picture and factor in the long term I can give you at least a couple of reasons as to why it's a good idea to list your home in Iowa City now.

Let me start off by telling you that the Iowa City real estate market is more resilient than many other markets. Iowa City is a relocation town. Lots of the time folks are moving because they must  - not because they choose to. That puts a totally different dynamic into buying or selling a home in the Iowa City area.

That's the good news. The not so good news is that prices are kind of flat, so the chances of making a big profit when you put your home on the market are not great. (This is where you need to start thinking long term). Think of it this way: Buyers market or sellers market, it's unlikely in any market that you will make on both sides of the transaction. You might make a little less in this market than you expected, but you will get a good deal when it comes to buying your next home. Conversely, if you make big money when you sell your home, chances are you'll need to pay more when you buy a new one too.

In fact, if you're busting out at the seams of the little house you're in now and are upgrading to buy a bigger and better home, there's a good chance you'll end up really coming out ahead. You may wonder how. Well, there's a high likelihood that you will make great deal on your new (more expensive) home AND profit from the incredibly low interest rate (= lower mortgage) you'll pay for that lovely new home of yours.

What if you're downgrading and buying a smaller home? It still looks good. We have a flat market, not a declining market. In fact, if you check out my absorption rate analysis from last week you'll see that the Iowa City real estate market is definitely trending in the right direction for sellers. And as far as prices are concerned, year over year home prices in Iowa City are down by 2%. That's not too bad when you think about it.

If you're downgrading after many years in a home, you'll be just fine. Even if you're selling a home after living there just a few years there's still a chance you'll break even. (Depending on whether you bought the home in the boom years or not and paid a premium for it). And you will still profit from the extremely low interest rates available right now. Not to mention the big motivator that smaller homes cost less to maintain - right down to the utility bills.

There you have it. If you look at the big picture, upgrading or downgrading, there are a few good reasons for listing your home for sale now. In my estimation prior planning is key to getting a home sold, so with that in mind I'm including a few links below for you to check out. Also, once November rolls around you can expect to see my monthly real estate market reports for October, not just for Iowa City, but for Coralville and North Liberty too.

Selling a Home in Iowa City - The most important aspect to getting a home sold is pricing it right. (And I do mean pricing a home right and NOT underpricing it!)

Iowa City Real Estate Market Report - This report includes info on homes sold in Iowa City in September. (And contrary to national numbers Iowa City did well in September). Along with a look at the home sales for the 3rd quarter.

Iowa City Absorption Rate Analysis - What the absorption rate gives us is is insight on how the real estate market is trending. Whether we are in a buyers market, a sellers market or in a transitional or balanced market.

Selling Your Home in the Iowa City Real Estate Market - What do you think is the most important aspect to getting it sold?

I was recently asked the question whether marketing or price are more important when it comes to selling a home. It got me thinking. Ultimately we all know it is a combination of both, but the question was interesting, because it forced me to consider them separately.

So what is the most important aspect to selling a home in Iowa City? In my opinion it's price. If you take a look at my absorption rate analysis from last week you'll see the market is turning and we are trending away from the buyers market and towards a more balanced market. The fact is though that buyers are still looking for deals and our market is still driven by price.

So what? You may ask. If it's properly marketed, even if it's priced higher, a nice house will rise above the competition and sell anyway. Wrong. Buyers are bargain hunters, they will walk straight past a higher priced home and go for the deal almost every time. No amount of marketing will help you there. Is there a slight chance that your home will sell at a higher price? Of course there is - if you get lucky and the stars are aligned right! Personally I think "luck" is something you need when you go to the casino, not when it comes to selling your home. When it comes to selling your home you need a plan. And the plan is to price it right on day one. Don't be tempted to test the market with a higher price and reducing it later either. Buyers are very savvy, (or they're working with savvy buyers agents) - They will notice and the time on market will be reflected in the offer.

So how exactly do you go about pricing your home correctly for the market? You need to find the "sweet spot." Not too low, not too high, but right there where it should be! This is pretty difficult to do on your own and maybe one of the most important reasons to work with an agent. Me, I'm a data freak. I do monthly reports that show how the market is trending. I also look at the absorption rate for homes in the area. And when it comes to advising you on a listing price for your home I'll use a combination of this kind of data along with any other factors I might consider important about your particular situation.

Sometimes I think sellers are skeptical when they hear about pricing a home right and think that's code for pricing it lower than the market. Not so. When it comes to listing a home I'm as much against underpricing a home as I am overpricing it. If I'm representing a buyer, then I want them to get the lowest price possible. For sellers I am shooting for the highest price possible. (That's also why I don't like dual agency, but I guess that's a topic for a different post). The point being, I know the market, but have no influence on it. I analyze the data and advise you what you can expect when you sell your home. Sometimes you will like what you hear. Other times maybe not so much. Either way you will have the information you need to make a decision...

Right now, you heard it here... Pricing your home right is the most important aspect to getting your home sold in the Iowa City real estate market.

I also help clients in Coralville and North Liberty. For your reference below are links to market reports and absorption rate analysis reports for those areas.

Coralville Real Estate Market Report September 2009

North Liberty Real Estate Market Report September 2009

Coralville Real Estate Market - Absorption Rate Analysis

North Liberty Real Estate Market - Absorption Rate Analysis

Iowa City Real Estate: Selling Your Home in a Tough Market

When times are tough it's time to get back to basics. There are  no secrets. There are three basic factors to consider when it comes to selling a home in Iowa City or anywhere else for that matter.

Condition of a home

Price of the home

Location

Let's start with condition: the condition of your home has never been more important than it is in the current market. The Iowa City market may be stable compared to other areas, but buyers are are still VERY picky in this market, so to get their attention you want to make sure your house"stands out from the crowd".

How do you do that? The easiest way is for you start thinking like a buyer. Pretty soon you'll be in the market to buy a new home. Go to some open houses and figure out what's important to you when you buy a home. Chances are you're on the same page as most other buyers out there... That's when you go back to your own home and start preparing your home for future open houses. Keep in mind my comment about buyers being picky... To sell your home in this market it doesn't need to look good - it needs to look GREAT!

If you think your home may need more than a little TLC before you put it on the market it might be a good time for us to talk. You want to be careful with those upgrades.You don't want to do anything that has little or no return on investment. When it comes to selling your home, some updates make sense, others don't. I can help you decide which ones should take priority.You want your home to appeal to as many potential buyers as possible, but there's no reason to be over the top about it. I subscribe to the "keeping it real" principle of doing what's reasonable before putting a house on the market. And actually that's a principle I subscribe to in any market, but perhaps more so in this one where the bottom line is on everyone's minds.

So now let's move onto pricing your home: This is something that's not exactly easy to do on your own and a very good reason to work with an agent. Figuring out the market is something we are good at. It's not just a question of finding out what homes sold in your neighborhood through some online resource. That would be too easy. When I prepare a Comparative Market Analysis (CMA) I do an in depth analysis of what's currently on the market, how many homes are pending sale and how they all relate to your specific property. I'm all about pricing a home based on data and use all the tools as my disposal to figure out the right price to list a home at. I will advise you on EXACTLY what's going on in your market and make you aware of what the competition is doing. Working with the data, we'll be able to price your home in such a way that it attracts maximum attention with the potential for the most showings.

Pricing your home right is key to attracting buyers to come look at your home. It's widely accepted that homes sell closer to their asking price within the first 45 days on the market. After that all bets are off. This is not the market to "test" a higher price. If you price your home in line with market conditions you can expect buyers to come see it and it will only be a matter of time before the right one walks through the door and makes an offer. Not really rocket science at all. Just a good game plan!

Now all we're left with is the question of location as a factor when it comes to selling your home. Everyone's heard of the term that selling real estate is all about location, location, location. Well, if may not be quite as true as it was once, but it is still a very important factor for almost all buyers.

What have you got that puts your home in a location potential buyers want to be? It's not a factor you can change, so you work with what you've got. What makes the location of your home a good place to move to? There is probably a reason why you moved there...Is it close to the elementary school? shopping? work? Your agent will ask you these questions, (and probably have some of the answers too).

Going back to price briefly, where your home is will also contribute to the analysis when it comes to setting a price. In Iowa City for instance, if your home is within walking distance of either the UIOWA or the UI Hospitals then yours is going to be a pretty popular house! Popular neighborhoods translates into higher prices, that's the way it works.

That about sums it up. When you have these 3 things covered you will be well on your way to selling your home. Some of the information in this post is specific to the Iowa City real estate market, but the three basic factors to consider when your selling your home probably apply to just about anywhere in the country.

Of course there is still the secret ingredient of a good marketing plan...There would be no point in all this preparation if buyers didn't know your home was on the market, would there?

That's the part where you step back and let me do my job. No worries, we're well-prepared, so you can just relax and wait for the showings to start...