How To Determine The Price Of Your
Home
by: W. Troy Swezey
Why is it that some homes sit on the market for a
year while others sell like hot cakes? 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 thats as
American as apple pie: comparative shopping.
Although comparing houses with different styles,
square-footages and locations is challenging, real
estate professionals still feel its one of the best
methods to use when determining a homes market value.
A responsible real estate agent will effectively
evaluate a homes worth through a process known as
Comparative Marketing Analysis (CMA). Taking a look at
assets, such as a swimming pool, bigger than normal
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, the agent is able to recommend a realistic
price range that will ensure you top dollar and a
reasonably
However, factors such as the amount of time needed to
sell your home can alter the agents price
recommendation dramatically.
Typically, people should check with real estate
offices in the community to determine the typical
duration that listings are on the market. Sales
associates will explain that the marketing norms
vary with prices and properties. Based on this criteria,
the agent feels confident that he or she will be able to
sell it for a price that both you and the buyer will be
happy with. However, if youre under time constraints
because of unexpected job changes or moving agreements
youve 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,
here are a few small steps you and your agent can take
to finding 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 services provide information on deals
pending that most real estate agents should be able to
shore with you.
A good rule of thumb before setting a price is to
make 20 comparisons of comparable properties within a
one-mile radius of your house. Once completed you can
feel comfortable that the price youve picked is a
good gauge of the homes worth and wont discourage
qualified buyers.
Being open and honest about what you see as the
homes greatest strengths and biggest weaknesses will
also help an 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, youre well on your way to a speedy
and fruitful sale.
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