Last article talked about getting your house ready to sell. Now we need to discuss pricing. How do you determine the correct price in order to meet your personal goals?
Most real estate professionals will present you with a Comparative Market Analysis (CMA) in order to determine the fair market value of your home. It is an excellent way to ascertain the value of your home compared to similar homes that have recently sold or are currently on the market for sale. Or been on the market for an extended period of time but have not sold yet. One of the mistakes that we see sellers make in putting a value on their home is they will look at a neighbor’s property and say they are asking X dollars for their house so mine must be worth Y.
The problem with that is the asking price of a property for sale is only one piece of the puzzle. One SMALL piece I might add! The asking price of a neighbor’s property is only what you are competing against in the current market and may not reflect the true market value of their home. Even selling prices of homes nearby may not be able to be use as comparables based on the circumstance of that particular sale.
We use two methods to determine market value at Harford Real Estate: 1) objective and 2) subjective. The objective approach is extensive and includes assessed value, tax ratios, square footage, beds, baths, garage space, acreage and more. This gives us a benchmark as if all properties were in the same condition, same location, and with the same amenities. Then we apply the subjective approach which is where the CMA comes in. CMAs are subjective because agents my make decisions on what properties to use for comparison to the subject property, including location, style, condition, and amenities. Our unique approach may be a little unconventional and make take more effort and time, but have proven to be very effective in determining the three price points for our clients: 1) Highest Price; 2) Middle or Average Price; and 3) Lowest Price.
This is where your goals begin to play a role. If you want to sell quick for whatever reason, you might list at the lower end of the scale. If you have some time (2 – 3 months), you may pick the middle of the road price point. And if you are in no hurry, you may want to go for the gusto and see if you can get the top shelf price for your house by waiting it out a little longer.
No matter what the situation is, we can certainly help you get a handle on the health of the current market, pricing, trends and more.
If you are interested in learning more, please let us know. In 2018, we will be conduction mini-seminars or we would be happy to sit down with you one on one and discuss any topic regarding real estate that is most concerning to you. We will give you a behind the scenes look at what we do and how we are able to stay on the cutting edge of real estate marketing.