You’ve seen those “home sold” signs around your neighborhood.
Maybe the signs leave you wondering about the sellers’ future:
- Where are they moving to?
- Why are they moving?
- Who will purchase the home?
Although you may have questions, neighborhood home sales can help answer several questions when you’re preparing to sell your home.
If you are living in southwest Arlington and the home around the corner is similar to yours in size and layout, it could give you an idea of what home prices are like in your community. However, if the neighbors have put in some major upgrades — or have a tough time selling! — you can also learn something.
Here are additional things to consider and uncover when your neighbor’s home is on the market.
Do You Have Time To Check Out Open Houses?
Are you friendly with your neighbors? If you are, you may get insight from them about their home sell by asking about the feedback they’ve received. If they are hosting an open house, ask if you can attend. Pay attention to what open house attendees are saying about the home. Take note of the feedback you hear.
When several visitors comment on an outdated feature that your home also has, consider making plans to update it. For example, let’s say they loved your neighbor’s outdoor living space. Now you know it’s important to highlight the outdoor living space you have.
What Kind Of Real Estate Market Is It Right Now?
A home could sell in a couple of days in a hot real estate market. When the market is slow, it could take months for a home to sell. It’s helpful to know how long it takes your neighbor’s house to sell. This is even more important if their house is like yours. When looking at comps, ask yourself these questions:
- Did the house sell fast or did it stay on the market for a while?
- What was the final sale price?
- Was the original asking price close to the selling price?
- Did the sellers drastically lower the price after a long time on the market?
- Were the sellers urgent to sell because of a life event (relocation or financial distress)?
- How did your neighbor’s home sell price and time on the market compare with other nearby homes?
I have to remind you the key number is what the house sells for. Don’t get too caught up with the original asking price. The original asking price may be out of touch with the market’s reality. The sellers may have started with that number for a variety of reasons.
Lastly, the house can not be a true comp until it actually sells. A real estate agent can verify that for you.
Can I (And Should I) Time The Market?
If your neighbor priced their home right and the house sells quickly (i.e. within a few days to a couple of weeks) it might be your time to sell.
Conversely, maybe you’re not sure if you want to sell. If your neighbor’s home is not getting much interest, and appears to be a buyer’s market based on a lack of interest in your neighbor’s home and lots of competition, consider waiting. Your home may also sit on the market for a while.
What Can My Neighborhood Demographics Tell Me?
It’s common for a neighborhood to develop a personality. A neighborhood could be primarily young families, singles, empty nesters, retirees, etc. A real estate agent can help you uncover information about a neighborhood. Information can include average age of residents, crime statistics, school ratings and walkability scores.
A better understanding of who your neighborhood will appeal to can help you target that group when marketing your home.
Once you get the details on your neighbor’s home, you’ll have a better idea of what you should and shouldn’t do when you’re ready to sell.