Why
is it that some homes sit on the market for a year while others sell
like hot cakes? Frustrated sellers will blame a bad market, while a
good real estate professional will tell you that many times, a slow sale
is often attributed to the listing price.
If a
home is overpriced, buyers will stay away. But, if the price is
competitive with similar homes in the area and “shows” better than the
competition, it will have a better chance of being sold quickly.
The
secret is perfecting a technique that’s as American as apple pie:
comparative shopping.
Although comparing houses with different styles, square-footages and
locations is challenging, real estate professionals still feel it’s one
of the best methods to use when determining a home’s market value.
A
responsible real estate agent will effectively evaluate a home’s worth
through a process known as Comparative Marketing Analysis (CMA). Taking
a look at assets, such as a swimming pool, bigger than normal living
spaces, a fantastic view, adjacent city parks and other attractions, the
agent will begin to compare your home with similar properties, called
“comparables,” that have sold in the area within the last six months.
Typically, the agent is able to recommend a realistic price range that
will ensure you top dollar and a reasonably
However, factors such as the amount of time needed to sell your home can
alter the agent’s price recommendation dramatically.
Typically, people should check with real estate offices in the community
to determine the typical duration that listings are on the market.
Sales associates will explain that the marketing “norms” vary with
prices and properties. Based on this criteria, the agent feels
confident that he or she will be able to sell it for a price that both
you and the buyer will be happy with. However, if you’re under time
constraints because of unexpected job changes or moving agreements
you’ve made on another property, this will narrow your chances of
selling the home for top dollar in the market.
Assuming you have sufficient time to market the home, here are a few
small steps you and your agent can take to finding the right price for
your property.
The
best comparisons can be made with similar homes that have been sold
within the last 45 days as opposed to the standard six months. Any
longer and other factors, such as the economy, could cloud your view of
how much your home is really worth.
Another good benchmark is to review the selling prices of homes that
have just been sold and are pending closes. Most MLS services provide
information on deals pending that most real estate agents should be able
to shore with you.
A
good rule of thumb before setting a price is to make 20 comparisons of
comparable properties within a one-mile radius of your house. Once
completed you can feel comfortable that the price you’ve picked is a
good gauge of the home’s worth and won’t discourage qualified buyers.
Being open and honest about what you see as the home’s greatest
strengths and biggest weaknesses will also help an agent get a better
feel for how to best evaluate (or assess) and market your home. Think
of your home as if you were the buyer. If your home is listed at
the right price, you’re well on your way to a speedy and fruitful sale.
Click Here for an online, free analysis of your homes value.
