Everyone loves to play the nosy neighbor from time to time. Did you know you can use that curiosity to your advantage? A neighbor’s home sale can be a gold mine of knowledge when preparing to sell yours. See what you can learn when your neighbor sells their home.
What’s the market like?
When your neighbor sells their home, one of the first things you’ll probably look for is the sales price. Whether this means asking your neighbor directly or making an assumption based on their listed price and how long the home was for sale before that SOLD sign showed up, this step can be a great indicator of the current real estate market in your area. If the home sells immediately, there’s a good chance you’re in what is known as a “sellers market,” meaning that the inventory of homes for sale is so low that homes sell quickly and for a high percentage of their listed price. On the other hand, if you see the FOR SALE sign in the yard for quite some time, this could mean your local market is closer to a “buyers market.” A buyers market happens when the inventory of homes for sale is high and there aren’t many buyers looking for a new home. This gives the power to the buyer, meaning they can often get a much better deal on a home they’re interested in. It’s true there are more complicated and reliable factors that go into making that determination, but looking at the listing price and speed of sale is a step in the right direction when your neighbor sells their home.
What home trends are current?
Another great piece of information you can snag when your neighbor sells their home is a look into what home trends are current and popular. Especially if your neighbor used an expert real estate agent for home staging, there’s a good chance they updated parts of their home and furnished it with accessories and décor that is considered “in.” Just like with the market scenario above, analyzing these features and additions and comparing them against your own can help you determine the marketability of your own home. Did your neighbor’s home have new appliances and updated hardwood flooring? If that’s the case, you may think of purchasing a new appliance package along with replacing your old, carpet flooring. Of course, you’ll have to be fairly close with your neighbor to be invited inside their home to see what changes they’ve made. If you and your neighbor aren’t on that level, watch for an Open House sign in the yard and stop by to look around during the Open House. Don’t forget to also inspect the outside of the home: the exterior of the home is the first thing buyers will see, so look for ideas that could help boost the curb appeal of your own home.
Think about the micro level…
It’s easy to get hung up comparing numbers when your neighbor sells their home, especially if you start analyzing market data from your community as a whole. You have to remember: not all buyers will be interested in all homes. Is your neighbor’s home a cookie-cutter type of house? If the layout and exterior are essentially a duplicate of yours, you’ll be able to get a much better understanding of what “that type” of home will sell for. However, two very different homes can sell for two very different prices. Even if your homes were built the same year and have a similar layout, your neighbor’s two-story, 4bed/3bath home will sell for much more than your one-story, 2bed/1bath home. That example offers an obvious distinction between each home, but sometimes even small differences can create a much different sale price. Even if your neighbor’s home is significantly different from yours, you can try looking at what features and additions they have that you could potentially add to your home. Just be sure you’re investing in the right improvements!
Whether you’re thinking about selling your own home or you’re just a curious person, looking at the overall house and selling experience when your neighbor sells their home can provide you with a starting place for valuing your own. For a much more detailed analysis and a presentation of what your home is currently worth, contact the Horton Team today to schedule a no-obligation walkthough of your home.