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It always amazes me how you can pick 5 agents out of any market and ask them how the market is doing and how varied the responses will be. Some can rattle out a list of houses in any given price range and some might struggle naming even a few houses for sale anywhere. Then of course there’s the agent who says “It’s a seller’s market” while the person next to them says “It’s a buyers market.”
Here’s a fun little exercise for you to try to test your market knowledge and to make sure you’re right next time someone asks you what kind of market you’re in. Not only will it give you an edge over your competition, but it will also boost your client’s confidence in you.
See how well you can answer the following questions:
1. What is the average Days on Market (DOM) before a house goes under contract in your primary market over the past 6 months? What is the lowest DOM? The longest?
2. What is the average or median sales price of a home in your market?
3. Name 5 houses for sale in the following categories: Under $200,000, Between $200,000-$500,000, and over $500,000.
4. List 4 “must-have’s” buyers are looking for: (Example, finished basement, granite counter tops, etc.)
5. What percentage of your market consists of new construction?
6. What percentage of your market consists of single family homes? What’s the percentage on condominiums?
7. Where do Buyers come from? Are they in-town move-up/scale down buyers or out of state transferees?
8. Where are sellers going? Are they moving up? Scaling down? Transferring?
9. What is the typical commission being charged by agents and brokers?
10. What is the difference between the list price and the actual sale price on homes that have sold? What percentage are selling higher than the listing price? What percentage are selling lower than the listing price?
11. What percentage of homes have had price reductions in the past 6 months?
If any of these questions stumped you, you can look up the information easily through your MLS and tweaking the seach criteria. Many offices are also now offering software that can help you find these answers quickly and easily and even print them out as reports to show on listing appointments.
