Current “Market Conditions” Now Available for Every Listing!

Thursday, May 22, 2008

The press sure loves writing about real estate doesn’t it? “Market Booming”, “Real Estate Collapsing”, “Prices Skyrocket”, blah, blah, blah.  But can the information in these news stories really help you make smart decisions if you’re in the market to actually buy or sell a home now?

Unfortunately, the answer is NO, not really.  Even if the information portrayed is accurate (questionable), the problem is that closed sales only reflect activity on properties that went into escrow (under contract), 30 to 180 days ago.  If you find a property for sale now that you want to buy now, what you really want to know is “How hard can I negotiate the price?” If you are a seller with a home for sale now, you want to know “How hard can I hold out for my price?”

Many years ago, I created a simple indicator of current market “Supply versus Demand” for a location. (in fact we have a Patent Pending approval by the US Patent Office) By knowing what percentage of the listings for sale now in an area are in escrow (under contract) you get a great idea of whether that area is currently a buyers’ or sellers’ market and to what degree.

For example, if there are 100 homes for sale in Palo Alto, California and 15 are in escrow (under contract) than the percentage in escrow is 15%.  CleanOffer’s opinion is that 15% indicates a “Strong Buyers Market”.  These opinions take into consideration lots of factors including how long it generally takes a property to close escrow once it is under contract.

To get the Market Condition for any listing you view on CleanOffer, simply click the “Market Condition” link under the property photo for that listing. 

You’ll be smarter for it!