Consider The Size Of The Buyer Pool When Pricing Your Home


Consider The Size Of The Buyer Pool When Pricing Your Home
By Scott Rogers • March 7, 2024
This isn't an exact science, as I'll explain below, but... When you are pricing your home, it is important to consider the size of the pool of buyers who might be considering your home. If you're selling a townhouse in the City of Harrisonburg for less than $250K that's a pretty big pool of buyers -- there were 93 such sales over the past year. If you're selling a townhouse or duplex in the Spotswood High School district for more than $500K, that's a much smaller pool of buyers -- there were only 5 such sales over the past year. If you're selling a detached home in the Turner Ashby school district for less than $400K, that's a pretty big pool of buyers -- there were 82 such sales over the past year. If you're selling a detached home in the Turner Ashby High School district for more than $700K, that's a much smaller pool of buyers -- there were only 4 such sales over the past year. So, as you consider a pricing strategy for your home, we will want to dial in on how many buyers are paying that sort of a price for your sort of a home in a given timeframe so that we have reasonable expectations related to how much interest we will have in your home and how quickly it might sell. Two significant(ish) caveats... [1] We'll be predicting future demand based on past demand which is usually a reasonable estimate, but it's quite possible that -- for example -- 40 buyers wanted to buy your sort of home over the past year, but only 25 buyers will want to do so in the coming year. [2] Sometimes a seemingly small pool of buyers is actually a supply-side constraint. When we see that only five buyers paid over $500K for an attached home in the Spotswood High School district in a year's time part of that may be a result of only five buyers wanting to buy such a property, but it is quite possible (or even likely) that it is also a result of only five sellers being willing to sell such a property during that timeframe. Regardless of the caveats, it is important to understand how many buyers will potentially be considering your home when it hits the market based on how many buyers have bought such a home over the past 6 to 12 months. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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