Why a Market Analysis?

A market analysis or CMA is a free service offered, and is to a large degree an non-subjective way to pin-point the market value of property.  Why is this important?  If you are considering selling your home, having an experienced agent perform a complete CMA will eliminate error in pricing.  If you are considering making an offer on a home, you will want to know the value you are getting.  In rural areas such as Table Rock Lake, Kimberling City and Branson Missouri there is such a variety of properties that include custom homes built on wooded acreage, lake-front or lake-view lots.  There are variances such as neighborhood conditions, construction type, and location to conveniences.  In this particular market a computer CMA can have a significant margin of error.  One way to reduce error is to include a “Cost Approach” in the Market Analysis. This is where you re-build the home to find a replacement cost.  You then depreciate the age and condition of the home then average the price per square foot with the base price of comparable homes (sold and currently on market).  The result is you now you have all the elements necessary to get an accurate price.

How Long will Your Home be on the Market?

If you are a homeowner in the price range of $450,000 – $700,000 you understand that the inventory in this market is taking quite some time to move.  In a recent article by Stewart Mednick, he discusses a formula that can be adapted at different price points to find out how long it will take for a home to sell. 

I applied Mednick’s formula to the real estate market in Table Rock Lake and Branson Missouri and adapted the price range to fit local conditions.  In the Tri-Lakes area, there 11 homes in this price range that have sold in 2009.  I divide that number by 6 (representing 6 months) = 1.8 homes per month sold.  In Branson West and Reeds Spring there are 34 homes on the market.  I divide 34 by 1.8 (number of homes that sell per month) = 18.9 months necessary to sell a house in this price range.   In Kimberling City, Lampe and Shell Knob there are 25 homes on the market.  I divide 25 by 1.8 = 13.9 months.

According to Mednick, this is important information that needs to be included in any marketing plan or market analysis.  This information is especially beneficial when considered with pricing the home in a price point that is most competitive.

Dressing the House You Live In

Most buyers who are inquiring about real estate in Branson Kimberling City and Table Rock Lake are retiring, or looking for a second-home/vacation home, which in their mind should be the perfect opportunity for them.  That said, it becomes even more critical that the property is “show ready” at any given time.  It has been by experience the selling party will typcially feel stress wondering “How can I keep this house ready to show… and where are my things?  If you truly dress your house for sale, it’s going to be on the market for a short period of time before offers start coming in.  My recommendation:  simplify your life.  You are going to be moving soon anyway, so why not pack your things, purge the closets, and clean out the garage.  You will be amazed as to how little you will actually need over a period of 90-120 days.  In the process of simplifying your life, you will make your home stand out above the vast mix of homes and properties in the Ozarks.

6 Reasons Why Some Homes Sell and Why Others Don’t

There is not ultimate answer to this question.  We have to ask ourselves what draws our attention to some homes and identify the issues that create a barrier to the buyer.  Here are top reasons properties linger on the market:

1.  Lousy pictures on the Web.

2.  Priced to high for the neighborhood or the local market.

3.  Blah interior/landscaping.

4.  Hard to find on the MLS (not filed or keyed in correctly).

5.  Miserable maintencance, including ceiling stains, leaky faucets, and ancient furnaces.

 6.  Low commissions.  Practitioners make sure their their customers see properties that offer a payoff.

Market Snap Shot for Table Rock Lake Kimberling City and Branson West Missouri (July 29 – Aug 5, 2009)

Statistics provided by Search of properties in Branson West, Galena, Indian Point, Kimberling City, Lampe and Reeds Spring.

Courtesy of Tri-Lakes Board of REALTORS©

Homes & Condo’s	This Week	Year to Date
	7/29/09 – 8/5/09	1/1/09 – 8/5/2009
New Listings	17	680
		-6.34% of same period 2008
Sold Listings	6	132
		-28.65% of same period 2008
List to Sell Percent	91.3%	93.7%
Average Days on Market	208	134
		+2.29% of same period 2008

Why do homeowners so often price their homes so unrealistically far out of the market?

It is very difficult to narrow it down to one answer.  There could be several reasons:

1.  The seller does not understand what a qualified buyer is willing to pay for it.  A home wihtout a buyer has no value. 
2.  Lack of understanding of common properties that are currently on market and more importantly homes that are pending/sold and expired.   
3.  Lack of ability to identify objective criteria that can be compared to other similar properties.  These items could include square footage, number of bedrooms/bathrooms, type of heating system, lot size etc. Other criteria that may be subjective but would help in determining value would be location, school district, type of view.  

Overall it is important to understand that pricing a property is a complex process.  A seller will deal with real estate two to three times in their lifetime whereas real estate professionals work with comparing properties, assisting in the sale of properties every day.

Market Snap Shot for Table Rock Lake Kimberling City and Branson West Missouri (July 22 – July 29, 2009)

Statistics provided by Search of properties in Branson West, Galena, Indian Point, Kimberling City, Lampe and Reeds Spring.

Courtesy of Tri-Lakes Board of REALTORS©

Homes & Condo’s	This Week	Year to Date
	7/22/09 – 7/29/09	1/1/09 – 7/29/2009
New Listings	19	665
		+13.29% of same period 2008
Sold Listings	3	124
		-23.46% of same period 2008
List to Sell Percent	91.8%	90.76%
Average Days on Market	131	132
		+4.80% of same period 2008

Market Snap Shot for Table Rock Lake Kimberling City and Branson West Missouri (July 15 – July 22, 2009)

Statistics provided by Search of properties in Branson West, Galena, Indian Point, Kimberling City, Lampe and Reeds Spring.

Courtesy of Tri-Lakes Board of REALTORS©

Homes & Condo’s	This Week	Year to Date
	7/15/09 – 7/22/09	1/1/09 – 7/22/209
New Listings	26	648
		+14.89% of same period 2008
Sold Listings	6	120
		-22.58% of same period 2008
List to Sell Percent	88.3%	90.4%
Average Days on Market	132	132
		+8.20% of same period 2008

Offers that Stick – Bullet Point

- Start with a Large Deposit.

-  No Contingencies.

- Time the closing to suit the sellers’ convenience.

- Don’t be a bully & Don’t nit pick clauses.

- Don’t try to negotiate furniture.

Market Snap Shot for Table Rock Lake Kimberling City and Branson West Missouri (July 1 – July 8, 2009)

Statistics provided by Search of properties in Branson West, Galena, Indian Point, Kimberling City, Lampe and Reeds Spring.

Courtesy of Tri-Lakes Board of REALTORS©

Homes & Condo’s	This Week	Year to Date
	7/1/09 – 7/8/09	1/1/09 – 7/1/209
New Listings	41	597
		+15.47% of same period 2008
Sold Listings	4	108
		-21.74% of same period 2008
Average Sales Price	$192,250	$165,167
		-11.59% of same period 2008
Average Days on Market	171	134
		+9.84% of same period 2008