One thing you should take with you always in your real estate endeavors is the timeless wisdom that knowing your local real estate market is the key. The market dynamics in your neighborhood might be different from another. Yes, you heard it right. You must set your sight not only on the county or state level, but also right to the individual block in your area.  

It’s crucial to be up to date with the supply/demand, inventory, and pricing dynamics. Also, familiarize yourself with the seasonality of your local market. Knowing these facets of the local market can help you hit the right timing and pricing when selling your property. 

Well, let’s better get down to the ways on how to learn and understand your local real estate market. 

Follow Local Real Estate Market Reports

Read and listen to what the local media is saying about local real estate market trends. Your source of information is wider now because of the internet. Besides local broadcasting networks and newspapers, there are blogs and social media to tell you what’s up with the local real estate scene. 

For instance, Patch.com has over a thousand hyperlocal websites that provide real estate reports across cities in the United States. Curbed, an American real estate platform, is also an excellent source for local real estate news. 

Development projects in your city or neighborhood can also give you clues on the situation of the market. For example, new road constructions or rising business establishments near you may bode well for the values of properties in your area.

Comparative Market Analysis

Conducting a CMA is a great way to appraise the price of real estate properties. This method relies on comparative properties or “comps” for the appraisal process. For example, if there’s a property similar to yours that has sold recently, it will give you an idea of the saleable price of your property. 

Listing websites like Zillow provide information on recently sold houses in your area. Look at the more recent comps (not older than thirty or sixty days) and ones closer to you. Pick comps with the same condition, square footage, number of rooms, and other variables to your property. 

If you’re looking at a comp that’s not similar enough, you’re looking at the wrong comp. Choose at least three or four comparables to provide you with an idea of the best price range for your house. 

Know Your Market’s Slow and Peak Season

Another crucial dynamic of the local market is its seasonality. For example, the highest listing prices in the San Francisco Bay Area are in November, while the lowest is in April. Of course, slow and peak seasons in a particular local market may not be the same every year. 

Talk to a real estate professional or read an expert market studies that analyze historical property price trends across cities to understand the seasonal cycles in your local real estate scene. Make sure to time your property listing to get the most profit when selling your home.  

Walk Around Your Neighborhood

“House for Sale” signs should prompt you to walk around the neighborhood and get a sense of the local real estate market. Ask neighbors about how open houses are faring, how property listings interest potential buyers, and what the folks are buying in your area. This in-person interaction can provide crucial information that data statistics cannot. 

For instance, you’ll learn how fast a house sells or sits stagnant in the market. The trends on asking prices in your neighborhood can also tell you what’s up in the local real estate scene. In turn, this gives you an idea on the best pricing of your property. 

Befriend Real Estate Professionals

Data drives the real estate industry forward. State-of-the-art tools allow real estate agents to gather and analyze data faster and more accurately. Just imagine how vast the resources are in the hands of real estate professionals. Thus, it’s wise to turn to these folks when you want to ask for relevant information on the local real estate market.  

It doesn’t automatically mean you pay money to talk with real estate agents. Many of them can give you information about the local market or your property’s value free of charge if you simply ask. 

Go to real estate seminars or events to meet such professionals and build your network. If you have contacts with real estate agents, ask for their opinions and compare their analyses to get relevant details and come to your own conclusion on what’s happening in the local market. 

Takeaway

So, those are the means to get a good grasp of the local real estate market. Market knowledge is crucial to get the right timing and pricing when selling your property. Follow local real estate news, ask real estate agents, do comparative market analysis, learn about the market’s slow and peak seasons, and walk around the neighborhood to boost your local real estate market knowledge.