A proper list price that reflects current, realistic market conditions and attracts the maximum number of potential buyers is critical to getting your property sold quickly. I don’t want you to under–price, but it’s far worse to over–price the house.
How do I come up with a suggested list price that reflects your home’s competitive position? It’s a combination of services and experience, art and science. I will be very careful and detailed in my analysis and market evaluation to make sure you don’t leave money on the table or sit around wondering why you aren’t getting offers, worried about maybe having to lower the price or, worse yet, cancel the sale.
When we tackle the subject of preparing your house for sale, I will suggest some worthwhile corrections you should consider to improve the property’s marketability. We will talk about the advantages, cost, and payback for professionally staging your home. We’ll also discuss the pros & cons of full disclosure, that is, marketing your house with a professional Pest Inspection and a thorough Home Inspection. Once I know what your home will look like when listed, what improvements, if any, you’ll make, and the disclosures you’ll provide, I’ll prepare a thorough CMA (Comparative Market Analysis).
CMA of Sold Properties
First I select comparable properties out of those sold recently and nearby. These “comps” are selected primarily for similarity in location and square footage, but also based on similarity in age, features, and characteristics with your home. They must have been sold as recently as possible in order to most accurately reflect current market conditions. Then I use those sold prices to arrive at a preliminary listing price for your home.
I say “preliminary” because I have two more CMA steps.
CMA of Current Listings
Next, I get comps for properties currently listed. These homes are your current competition–the ones many buyers will be comparing to your home. I review the details of these listings, and I come up with another, possibly higher or lower, price suggestion for your home. This second CMA gives me more up–to–date information about the market which could cause us to lower or raise our preliminary list price to adjust to the current market.
CMA of Pending Listings
Here is where I distinguish myself and offer superior service. Most agents don’t take the time or have the connections or reputation to analyze Pending listings, but I do. I pull all such listings of comparable size and location and I call the listing agents. While it is unethical for a listing agent to reveal the exact price at which a home is in contract, we often do extend the professional courtesy of assisting one another by revealing the approximate price or a range or a percentage of list price under which the property is in contract. I do my best to find out this information as well as how many offers were received and the relative strength of the terms of those offers. This analysis of “Pendings” is by far the most current and therefore most accurate way to determine the optimal list price for your home.
Using the three CMA results, an experienced analysis of your home’s position in the marketplace, and insight into current market trends we can set a listing price that will get your home sold for top dollar in the shortest amount of time possible.