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Pricing Your Home

Pricing Your Home

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USING COMPARABLE SALES

Know what is for sale, pending and recently sold will help you price your home correctly.

No matter how attractive and polished your house, buyers will be comparing its price with everything else on the market. Your best guide is getting your homes value using our CMA tool. 

The CMA will provide you with data on “comps” so you can analyze them for a more accurate listing price.  The list of comparable sales, along with data about other houses in your neighborhood presently on the market, is used for a “Comparative Market Analysis (CMA).” To help in estimating a possible sale price for your house, the analysis will also include data on nearby houses that failed to sell in the past few months, along with their list prices.

In the normal home sale, a CMA is probably enough to let you set a proper price. A formal written appraisal (which may cost a few hundred dollars) can be useful if you have unique property, or if there hasn’t been much activity in your area recently, or if co-owners disagree about price, and any other circumstance that makes it difficult to put a value on your property.

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Simple, Easy and all online

Pricing a home for sale is as much art as science, but there are a few truisms that never change.

Setting The Listing Price

In setting the list price for your home, you should be aware of a buyer’s frame of mind. Based on a list of houses for sale in your neighborhood (online search results that you’ve found yourself or from your CMA), buyers will determine which houses they want to view. Consider the following pricing factors:

  • Fair market value attracts buyers, overpricing never does.

  • The first two weeks of marketing are crucial.

  • The market never lies, but it can change its mind.

  • If you set the price too high, your house won’t be picked for viewing, even though it may be much nicer than others in the area.

  • If you price too low,  you’ll generate a lot more activity and might end up with multiple offers which will drive the price up.  Remember, you don’t have to accept any offers, even if they are at your list price.

 
 
Fair Market Value 
Generally, fair market value can be determined by comparables – other similar homes that have sold or are currently for sale in the same area.

Sellers often view their homes as special which tempts them to put a higher price on the home, believing they can always come down later, but that’s a serious mistake.

Overpricing prevents the very buyers who are eligible to buy the home from ever seeing it. Most buyers shop by price range, and look for the best value in that range.

 
First Two Weeks Are Crucial
1. Your best chance of selling your home is in the first two weeks of marketing. Your home is fresh and exciting to buyers and to their agents.

2. If you don’t get many showings or offers in the first two weeks, you’ve probably overpriced your home, and it’s not comparing well to the competition. Since you can’t change the location, you’ll have to improve the home’s condition or lower the price.

Consult with buyers and agents for feedback. Perhaps you can do a little more to spruce up your home’s curb appeal, or perhaps stage the interior to better advantage.

The market can always change its mind and give your home another chance, but by then you’ve lost precious time and perhaps allowed a stigma to cloud your home’s value.

Intelligent pricing isn’t about getting the most for your home – it’s about getting your home sold quickly at fair market value.

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