Do These 4 Things When Your Neighbour’s Home is for Sale
Some people say high fences make good neighbours, and others are happy to build close relationships with those who live next door or in close proximity to their home.
Whether you’re happy, sad, or indifferent that your neighbour is moving, there’s a lot to be learned from real estate transactions taking place in your neighbourhood. Perhaps you’re thinking about selling in the near future or are interested in refinancing your mortgage and want an idea of the current market value of properties in your area. Maybe you just want a sense of how much your home is worth compared to your initial investment. Whatever the reason, here are a few ways to benefit from a neighbour who is selling their home:
Here are four things to do when your neighbour’s home is for sale:
1. See how much traffic your neighbour’s home generates to gauge potential interest in your own.
2. Talk to your neighbours to find out what kind of feedback they’ve had.
3. Take note of how long your neighbour’s home takes to sell and the price.
4. Note who is moving in and what they did and didn’t care about when buying.
1. Preview demand
It’s not unusual for buyers to start showing interest in a property as soon as the for sale sign pops up in the yard, particularly if the market is hot. Find out when open houses are scheduled and observe the traffic of Realtors® showing the home. You may even notice cars slowing down on your street or pulling over to get a peek at the property in question. Making note of the volume of interested buyers helps you gain insight into whether your home, if comparable, will be in demand should you choose to sell.
2. Be a friendly neighbour
Now is not the time to be shy – strike up a conversation with your neighbours to wish them well on their home sale. Ask them what kind of feedback they’ve had from potential buyers and Realtors® and if they have any advice to offer you. You’re likely to get some useful information about what buyers are looking for in your area which may inform decisions you make about your own home. For example, if your backyard has been neglected and your neighbours have had rave reviews about the care they’ve put into creating an inviting outdoor space, you may want to consider investing some time and money there. Take note of any negative feedback as well – it may provide you with a heads-up on upgrades you may need to make on your home. Ask about the experience they had with their Realtor® and whether they would recommend him or her to others. Don’t forget to congratulate your neighbour after their home sells, and after you wish them well, be sure to ask about their experience again; they may have more valuable insights for you.
3. Gather data
Your neighbour’s house can be a valuable real-time indicator of your own home’s position in the market. Pay attention to:
- How long it takes to sell, or in real estate terms, days on market
- The final sale price, and if it was less than, at, or more than the list price
- If the sale price was adjusted at any point to achieve the sale
Make sure to compare any data you gather to other homes that have sold recently in your area in order to gain a clear understanding of market activity. Engage a Realtor® for a professional, in-depth analysis.
4. Note the trends
Your new neighbours can be an indication of trends emerging in your area. Perhaps they’re first-time home buyers who were happy to overlook dated décor or light repairs in order to get in the market. Maybe your new neighbours commute to work, but are thrilled to own a home with a large yard, demonstrating fresh demand for homes like yours. Once you get a sense of your area’s appeal, you’ll be better equipped to make decisions related to your own home’s future sale, like if it needs updating or would sell as-is to a similar audience.
If you’re thinking of selling, or are interested in learning more about a recent sale in your area, contact Faris Team to learn more about our portfolio of Free Home Evaluations.
