PROPER LIST PRICING

A proper list price that reflects current and realistic market conditions is critical to getting your property sold quickly. We don’t want you to under–price, but it’s worse to over–price in any market. Buyers discount value by DOM, Days On Market. The longer a home stays on the market, the greater buyers will discount their offers. They will wonder what is wrong with the home that no one else has already jumped on it. So, a realistic list price is how we make sure your property sells without languishing on the market.

How do we come up with a suggested list price that reflects your home’s competitive position? It’s a combination of services and experience, and we’re going to be very careful and detailed in our analysis and market evaluations to make sure that you don’t leave money on the table or sit around wondering why you aren’t getting offers.

Our evaluation of how your property compares to the current competition is the first step. Then we may suggest some worthwhile corrections you can make to improve that position. Once we know what your home will look like when listed, we will go into our thorough CMA, Comparative Market Analysis, process.

CMA of Sold Properties

First we select comparable properties out of those sold recently in the neighborhood or nearby. These “comparables” or “comps” are selected based on similarity in condition, features, location and characteristics with your home. They must have been sold as recently as possible so the sold prices are of maximum value. We know how an Appraiser will evaluate your home in assessing it’s value so we then do a thorough “adjustment” process to adjust their sold prices for any differences with your property. If a home has one more bedroom than yours, we would adjust that property’s sold price downward for the value of one bedroom to make the comparison “apples to apples.” We make adjustments for garages, bathrooms and other major features to bring our comps to closely compare with your home. Then we use those sold prices to arrive at a preliminary listing price for your home.

We say “preliminary” because we have another CMA step.

CMA of Current Properties

Now we get more comps, but now this includes properties that are currently listed and your competition. We go through the same adjustment process, and we come up with another, possibly higher or lower, price suggestion for your home. This second CMA gives us 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. Using the two CMA results and an experienced analysis of your home’s position in the marketplace, we can set a listing price that will get your home successfully sold.

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