INDUSTRY INSIGHT
REAL ESTATE
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Pricing Your HOME
Why is it that some homes sit on the market for a year while others sell like hotcakes ? 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 Market Analysis ( CMA ). Taking a look at assets , such as a swimming pool , bigger-thannormal 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 , it is a realistic price range that will ensure top dollar and a reasonably quick sale .
However , factors such as the amount of time needed to sell your home can affect the agent ’ s price recommendation dramatically .
I can determine the typical duration that listings are on the market and can explain that the marketing “ norms ” vary with prices and properties . Based on this criteria , we will be able to sell your house 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 , following are a few small steps you and your agent can take to find 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 ( multiple listing ) services provide information on deals pending that most real estate agents should be able to share with you .
A good rule of thumb before setting a price is to make 10-15 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 your 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 .
Hampton | Spring 2017 | icmags . com 31