The answer is no. This doesn’t mean we don’t get asked nearly every day, “So, how’s the market”? This is always a loaded question. Our local real estate market over the past 4 years has been dynamic to say the least. With rising prices, leading to higher property values, which leads to higher property taxes, which leads to some owners assessing their options. In some cases, this can lead to more inventory in the market, and the cycle continues. Higher inventory will eventually bring prices down, but how much?
Throw in a highly contested presidential election year and interest rates trending downward, and well, there are lots of variables at work. Here in the Okemo Valley area, at any given time, we have a diverse assortment of property types in our market, from farmhouses on acreage, to ski condos to village multifamily homes, and no two are alike. Some say that a property is worth whatever a seller is willing to sell it for and a buyer is willing to pay for it. This is partly true, but unless a buyer is paying cash, and an appraisal isn’t needed, “worth” or “value” needs to be substantiated.
This process is very much tied to the type of loan a buyer is qualified for and how much money the buyer has for a down payment on that loan. An appraisal is essentially a professional assessment conducted by a licensed appraiser who analyzes various factors such as the property’s location, size, recent sales of comparable homes, and unique features that may enhance or detract from its value. This comprehensive analysis culminates in a formal report, which serves not only as a benchmark for pricing but also as a necessary document for lenders during the mortgage approval process. For sellers, a well-executed appraisal can affirm their asking price, while for buyers, it protects them from overpaying in a competitive market.
A real estate agent works to help determine the value of your property and the best listing strategy by weighing several factors beyond square footage and the number of bedrooms and bathrooms in a property.
#1 Location
The age-old adage "location, location, location" remains true in the real estate market. This is arguably the most influential factor in pricing a property for the market. A property's location can dramatically influence its desirability, accessibility, and ultimately, its price. Ensure and don’t assume that your real estate agent is educated about the nuances of your location in order to properly determine value.
#2 Condition of Property
When it comes to real estate pricing, the condition of a property plays a crucial role. A well-maintained home not only enhances its aesthetic appeal but also gives potential buyers peace of mind. We all know first impressions count. A real estate professional can help you determine the priorities for updates and addressing any deferred maintenance.
#3 Supply and Demand
Certainly, in our seasonal market, real estate pricing is also influenced by seasonal fluctuations. Typically, in primary home markets spring and summer often see heightened activity as families prefer to move during warmer months. While this can be true in a resort market, the seasons are viewed much differently depending on the primary draw, such as a ski resort market, will be heavily influenced by the start and end of their winter season. Learning the market for your property, who your buyer most likely will be, and what months your property will most likely attract the most buyer activity are factors to consider with your agent in making an informed decision.
#4 Comparable Home Sales
Comps are properties that are similar in characteristics to the one being evaluated, typically located within the same community. They provide a realistic snapshot of the local real estate market, reflecting current buyer demand and pricing trends. Comparable sales not only provide essential data points for pricing but also serve as a crucial tool in strategizing how to present a property in the market.
Whether you are buying or selling, your real estate agent is your resource. Real Estate Agents are said to be the “source of the source”. A true professional helps buyers and sellers connect with the information and the services they want and need. No, we don’t have a crystal ball to determine the future, but we do have a treasure chest of tools and resources to help you along your way.
