In determining the asking price for your property, there are several important considerations. In most cases, the higher the asking price, the longer it takes to sell. Hence, it’s important to price it right. Overpriced properties are not as competitive as those that are well-priced. Why not, you ask?
- Most Realtors won’t show them.
- They are often shown only to help bring offers on other well-priced properties.
- Prospective buyers won’t view them because they’re ‘beyond their price point’.
- Even if they like them, prospective buyers won’t place offers on these properties because they ‘don’t want to insult the owners’.
In working with you to determine the best selling price for your property, the following factors need to be considered:
- Buyers dictate the best price available for your property.
- Most buyers engage in comparison shopping in print advertising and on the internet and are very well informed before they contact a realtor.
- A buyer will not pay more for one property than s/he would have to pay for another similar property.
- It’s our job to know what buyers are buying and how much are they paying in our area today?
Comparative Market Analysis (CMA)
- A CMA shows what buyers are willing to pay in today’s market.
- It demonstrates what buyers have actually paid recently for similar properties.
- It shows what buyers have not been willing to pay under current market conditions.
- A CMA focuses on other properties which are now competing for your buyer’s attention.
When we know what buyers are buying and what they’re paying, we’re able to help you set a price point which will sell your property within a reasonable timeframe and for the best possible price.
It’s important to be clear about which factors do and do not affect your home and property’s value. We must consider the following:
Factors that Do Not Affect your property’s value
- What you paid when you bought (or built) your house
- The cash proceeds you want or need from the sale.
- What we, or other real estate professional say your property is worth.
Factors that Do Affect the marketability of your property
Beyond your control
- Fixed physical features of the property
- Market conditions in and beyond our community
- The competition – other listings
Within your control
- Listing price and terms offered
- Condition of your property – inside and out
- Marketing and promotional strategy (including public exposure and ease of showing).
Consideration of these key factors will provide a solid foundation for the realistic pricing of your property. All of these factors must be considered in planning the successful sale of your property.