Selling Your Home: It Really Boils Down To Supply and Demand. Do You Have An In Demand Product or is the Market Over-Saturated?
Selling your home really boils down to supply and demand as the first element. Do you have an In demand product or is the market over-saturated? The typical home seller has an amount in their head that they believe their home is worth. This is all too common. There are generally improvements that a home seller has made over time that are considered of value and then there are the emotional ties.
One of the biggest driving forces that predicates where a home seller can price their home effectively to get it sold is supply and demand. It is this same driving force that determines basically how much we pay for everything. Anything from the price we are willing to pay for toothpaste on up to or latest Nintendo Wii. Why? Because when the supply of an item is low and many people want it, this generally drives the price of that item up. This makes perfectly logical sense. You can charge more for it because people who want the item will engage in competitive bidding, stand in long lines, participate in lotteries…whatever it takes. We’ve seen this happen in the housing market.
This simple phenomenon seems to have always existed and will most likely continue to exist. What home sellers and home buyers alike must always analyze is plain and simple “supply and demand.” When selling or buying a home, one must ask and understand two crucial questions:
How many homes are currently offered for sale?
How many homes for sale have closed in the last six months?
With a bit more calculation, the probability of your home selling can be garnered. But to keep it simple, the first question tells us what the supply currently is and the the second question will tell us more or less what the demand is. The rule of supply and demand is the fundamental principle of value. The value of your home in a competitive market is determined by the levels of supply and demand. It is worth more when demand exceeds supply and worth less when supply exceeds demand.
Keisha Hosea is a local Market Expert and Realtor in Chino Hills, California with Keller Williams Realty, She is the Team Director and CEO of KASI Homes. Keisha Hosea and the KASI Homes team offer help to home buyers and home sellers throughout the Inland Empire. She has been a local resident of Chino Hills and the Inland Empire for over 25 years and enjoys volunteering with the City of Chino Hills in her spare time. For more information on foreclosure, short sales and real estate you may call her direct at (909) 261-6377. Visit the website at http://KASIHomes.com
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