We have been asked: “Why do you put the median sales price on your just listed postcards and just sold postcards?” We hear that the majority of people like to use the term average. Average Sales Price doesn’t always accurately depict our real estate market areas.

Median Sales Price vs. Average Sales Price

When you’re buying or selling a home, you might evaluate the average sale price or the median sale price in your town. But what’s the difference between the two figures, and which number should you rely on as a valid measure of typical home prices in your area?

The Difference Between the Median Sale Price and Average Sale Price

The average sale price is calculated by adding all the sale prices for homes sold in a specific town and within a certain time frame and dividing that total by the number of properties sold.

Average Sales Price Example: 29 homes sold in a Lincolnville Maine last year, the average home price would be calculated by adding the sale prices for all 29 homes and dividing that figure by 29. Which creates an average sales price of $345,924.

The problem with the average sale price is that if one or more properties were sold at a very high or very low price, the average becomes skewed by that higher or lower home price. The median sale price, on the other hand, is the sale price in the middle of the data set when you arrange all the sale prices from low to high.

The median sale price, then, represents the figure at which half of the properties in the area sell at a higher price and other half at a lower price.

Median Sales Price Example: Using the same 29 homes that sold in a Lincolnville Maine last year, the Median sold price is $240,000

Is the Median Sale Price or Average Sale Price a Better Figure? It’s beneficial to calculate both the average sale price and median sale price to help you determine the ideal listing price when buying a home. In the Lincolnville examples above there is an over $100,000 difference between the median and average sales prices.

When you list the current listing prices in your area or the sale prices for sold properties, you can easily determine if there is an outlier that could be inflating the average price calculation. It’s important to take into consideration all figures.

For more advice on how to make the most money from selling or buying a home, contact a Dwelling in Maine Real Estate Agent. We can walk you thru determining the best price for a property in Midcoast Maine.

Some Highlights:

• For Sale By Owner (FSBO) is the process of selling real estate without the representation of a real estate broker or real estate agent.
• According to the National Association of Realtors’ Profile of Home Buyers & Sellers, 36% of homeowners who decided to FSBO last year did so to avoid paying a commission or fee. But, homes sold with an agent net 6% more than those sold as a FSBO according to Collateral Analytics!
• Before you decide to take on the challenges of selling your house on your own, sit with a Dwelling in Maine real estate agent in your marketplace and see what we have to offer.
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In real estate, (especially in Midcoast Maine) the spring is often seen as the ideal time to buy or sell a house. The term “Spring Buyer’s Season” exists for a reason, as renters and those looking to move on from their current home thaw out from the winter and hit the market ready to buy.

According to Bank of America’s annual Home Buyer Insights Report, 41% of renters surveyed agree that spring is the best time to buy a home. The surprising result, however, is that when ranking the seasons, winter comes in second at 24%.

In many areas of the country, the spring and summer are the most competitive seasons for buyers. Here on the coast of Maine, we have our summer residents who add an increase and additional competition to this seasonal buying market.

Families with children often want to move over the summer to make sure that their kids are ready for school in the fall. This often leads those families who haven’t found homes to buy to push pause on their search in the fall and winter months.

This creates a great environment for buyers to find a home with less competition. According to moving.com, scheduling a move during the winter months also comes with the best price.

“If you define ‘best’ by cost then, generally speaking, you are more likely to save on a move during the late September to April window. Demand for movers usually slows down during this time frame and rates are low.”

There are also many benefits to listing your house for sale during the winter months as well!

As we recently mentioned, buyers who are out in the winter are serious about wanting to find a home, and there is traditionally less competition on the market which gives you greater exposure to those buyers.

Bottom Line

As always, the best time to buy or move all depends on each individual buyer or seller’s goals and needs. If you are one of the many who would like to make a move this winter, contact a Dwelling in Maine real estate professional who can help you create a plan to make it happen!

In today’s market, where demand is outpacing supply in Midcoast Maine, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them.

There is no “later.”

Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.

John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered the their price. In his article, Listing Price, Time on Market and Ultimate Selling Price published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.

Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.

Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right

Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. Look for an agent that will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home. You need an agent that will tell you what you need to know rather than what you want to hear. This will put you in the best possible position.

Many home sellers in Maine believe that spring is the best time to place their homes on the market because buyer demand traditionally increases at that time of year, but what they don’t realize is that if every homeowner believes the same thing, then that is when they will have the most competition!

The #1 Reason to List Your Home in the Winter Months is Less Competition!

Housing supply traditionally shrinks at this time of year, so the choices buyers have will be limited. The chart below was created using the months’ supply of listings from the National Association of Realtors.

As you can see, the ‘sweet spot’ to list your home for the most exposure naturally occurs in the late fall and winter months (November – February). This is especially true on the coast of Maine.

Temperatures aren’t the only thing that heats up in the spring – so do listings!

In 2017, listings increased by nearly half a million houses from December to June. Don’t wait for these listings to come to market before you decide to list your house.

Added Bonus: Only Serious Buyers Are Out in the Winter

At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere ‘lookers’ or casual summer buyers. The lookers are at the mall or online doing their holiday shopping!

Bottom Line

If you have been debating whether or not to sell your home and are curious about market conditions in your area, talk with a Dwelling in Maine real estate professional who can help you decide the best time to list your house for sale.

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For more information, call-text Chuck Brawn at (207) 975-5139 or send him an email. 

Calling all nature and Maine lake lovers! Rare opportunity to own 18+ surveyed and private acres with 793+/- feet of frontage on desirable Megunitcook Lake. This building site with old stone walls has been surveyed, cleared, underground power and generator hook up is in place, has septic design, waterfront set-back lines marked, driveway in place and trails to the waterfront set. This is the perfect opportunity to watch loons and other wildlife, boat from your dock, and have your very own private fishing hole. Bring your dreams and home plans!

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Ever wonder how to calculate the size of your chandelier?  

Measure the length and width of your room then add those figures together. The sum of those two numbers is the approximate recommended diameter of your chandelier in inches.

 Example

12′-0″ + 20′-0″ = 32′-0″

Result as Inches = 32″

Correct Size Fixture = 32″ diameter

Chandelier can add to your room, give it character, and set the mood. Additionally, changing out light fixtures to more modern pieces can enhance the selling value of your home. 

As a home seller, are you prepared for the home inspection (building inspection)?

The buyer home inspection is one of the most critical stages of a real estate transaction and is often the contract item that causes the most anxiety for both the buyer and seller. By properly preparing for your real estate home inspection, you can avoid some problems that raise flags in the inspection report or complicate the sale of your home.

We’ve put together a home inspection checklist to help you go into the home inspection and minimize potential snags. 

Routine maintenance is an easy way to keep up with minor problems and prevent them from turning into bigger problems.

Outside the home:

1. Repair masonry on steps, foundation, and chimney.

2. Re-caulk around doors and windows and check any weather stripping.

3. Check flashing and replace any missing shingles. 

4. Replace any broken glass

5. Make sure all windows open, shut and lock.

Inside the home:

1. Have furnace cleaned and a current inspection tag hung from the unit.

2. Have fireplaces, wood stoves, and chimneys cleaned.

3. Check for and repair any leaky faucets.

4. Re-caulk and re-grout around sinks, tubs and toilets.

5. Check all regular outlets and GFI outlets to be sure they are functioning properly.

6. Make sure all appliances that are selling with the property are in working order and service if necessary.

7. Make sure all smoke and carbon monoxide detectors are working and install new batteries

8. Have water filtration systems (especially for wells) serviced and have service records available.

On inspection day, make your house shine! Make sure it is clean and that all doors, windows and utility rooms/basements are accessible. You want to make sure the inspector likes your home and does not becoming frustrated while inspecting it.

Allow ample time for the inspection and plan to be away from your home during the inspection. Also, make plans for your pets to be out of the home or contained. An inspection can be stressful for them. Typical buyer home inspections last 2-3 hours but can be more-or-less depending on size of home and any other inspections (like water tests and radon tests) that may be conducted at the same time.

Taking these steps can go a long way towards preventing issues that can negatively affect the home inspection and make buyers less confident in their purchase. It can also impact your final selling price as buyers often use the inspection to renegotiate the final selling price.

We all want your sale to go smoothly. If you would like more information please feel free to contact us.

Want to know how much money your Maine Home is worth on today’s market? Our online property valuation tool will give you an initial estimate. A Dwelling in Maine real estate agent can provide you with a more accurate price after viewing your home features, renovations, fixtures, and condition.