Enderly adds that she doesn’t expect to see astronomical gains in prices. “I do feel we’re going to have increases—but perhaps at a more normal level than what we experienced in 2005.”
The big picture
For Monmouth County area homeowners who are thinking about selling their houses, the good news is that prices are still at or near their peak.
According to data compiled by the NAR for the New Jersey Association of Realtors, the median sales price of an existing home in the Monmouth/Ocean County area was $444,300 in the third quarter of 2006—higher than a year earlier. The median sales price is the price at which half of all homes sold for more and half sold for less.
Even in areas where prices may have dipped, those who have lived in their houses for many years are still way ahead of the game. In 1976, for example, the median sales price of a single family home in the U.S. was about $40,000, according to the Department of Housing and Urban Development. As of November 2006, says the NAR, the median U.S. price stood at $218,000 (and the median price in the Monmouth area is twice that).
This example represents a 445% increase. Not a bad investment, especially considering that a $40,000 home was typically financed with a 20% down payment, or $8,000.
The right time
Of course, a home is much more than an investment; it’s where you carry on your life. Above all it must serve the way you live or want to live. If your house has become more than you really want to deal with, waiting for that elusive “best time to sell” could be self-defeating.
“Your best bet,” said journalist Holden Lewis in a column for Bankrate.com, “is to time the buying and selling of your home based on your needs.”
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Tips for selling in a competitive market
1. Be wary of going it alone.
The “for sale by owner” route has always been for the strong of heart, and in a market where buyers have lots of other choices, there is much less margin for error. Most would do well to get a reputable professional agent who understands the local market as it is today.
2. Price your home correctly.
A house that is priced too high is going to sit, and a house that lingers on unsold becomes a stale property. On the other hand, a right-priced home gets attention and perhaps even competing bidders. Listen to your agent’s recommendation, and don’t fight it too hard.
3. Make your house stand out.
With lots of otherhouses on the market, it’s crucial that your house shows its best. You don’t and shouldn’t have to spend a lot of money—fresh paint or a thorough cleanup can reap big returns in a home’s final selling price.
There are firms that specialize in “home staging,” and the best real estate agents will also help you dress your house for success. “Prior to listing the property I go through everything,” says Maureen Enderly. “Should furnishings be removed? Should the hardwood floors be exposed? Should a room be painted? What do we need to do in order to get optimum dollars and cents for our sellers?”
4. Think creatively.
Your competitors in the market for newly built homes are throwing in free swimming pools, granite kitchen counters, and vacations. You and your agent might also think about added-value deal-makers—from basic things like a home warranty to help with the buyers’ closing costs. A more unusual offer might be that extra car sitting in the driveway—perfect for that couple moving from the city.