REALTY REPORT: Think about doing a market analysis when buying a home

Posted 10/24/17

With a hot real estate market, sellers often start to think about listing the property as a “for sale by owner.”

This is not intended to go into the advantages and disadvantages of listing …

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REALTY REPORT: Think about doing a market analysis when buying a home

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With a hot real estate market, sellers often start to think about listing the property as a “for sale by owner.”

This is not intended to go into the advantages and disadvantages of listing with a Realtor versus doing it yourself, but I’d like to discuss the value of a well-thought-out market analysis completed by a Realtor.

A majority of homes sold will require bank financing, and with financing comes an appraisal. An appraiser will use data from sales to compile the market value of the home. This is the same process that a Realtor uses for a comparative market analysis.

Another benefit of a thorough market analysis is pricing strategy.

In Jefferson County, most sellers are making decisions based on a lifestyle change. These reasons include moving closer to family or downsizing, which means sellers have different needs regarding the timing of their move, financial considerations and ease of transition.

Taking these reasons into consideration, coupled with concern for a seller’s tolerance of risk level, a thorough market analysis can help a Realtor discuss a suitable pricing strategy for the seller.

A third benefit is the opportunity for the seller to discuss the Realtor’s marketing plan for the property. Every Realtor is different, and with the changing methods buyers use for finding real estate, it is important that sellers feel comfortable with their Realtor’s marketing approach.

Along with discussing marketing, this is an advantageous opportunity to touch on communication during the listing process and negotiation strategies.

A well-thought-out, complete comparative market analysis performed by a Realtor should give sellers all the tools they need to make an informed decision on list price and strategy.

2017 PRICES

Prices in Jefferson County for 2017 have continued to trend up this year compared to 2016. The number of residential transactions stayed level or were fewer throughout most of the county, often due to low inventory levels, while land transactions climbed a bit when compared to 2016.

The highest appreciation in the county when comparing 2016 to 2017 was seen in the areas between Port Townsend and Port Ludlow. These areas saw anywhere from 19 percent to 28 percent appreciation when looking at median and average selling prices.

When looking at year to date versus 2016, Port Ludlow saw a 17 percent increase in median selling price versus a 15 percent average selling price, and Port Townsend saw a 1 percent increase in median price and a 7 percent increase in average price.

One other development worth noting is the continued hot market in Kitsap County. The strength of the Seattle market is forcing buyers to seek homes in outlying communities. This is influencing the Kitsap market as buyers are finding good values when compared to Seattle neighborhoods. This will reach our county as some sellers in Kitsap will cash in on an elevated market and purchase here in Jefferson County.

Steve Kraght, president of the Jefferson County Association of Realtors, is a broker at John L. Scott Real Estate in Port Townsend.

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