When you and your REALTOR®sit down to price your home, you'll be looking at competitive homes that are the most similar in size, location and amenities as your home. You may find that prices can be thousands of dollars higher or lower. It's tempting to pick the highest price and say, "Let's list it here." But what if your home doesn't sell at that price?
High prices are a strategy that can work in an accelerating market, but it's risky. Your home can sit for months without selling and you'll end up marking the price down, perhaps lower than it should have sold for in the first place.
Pricing your home is a science. The science is choosing the right price at which your home will sell quickly. How do you do that? By analyzing your local market conditions and where your home fits in the spectrum.
The only way your home will sell at the highest price possible is if your buyer agrees to your home's value. To best determine market value, you have three important tools: CMAs, appraisals, and your REALTOR's®knowledge of the market.
The comparative market analysis
A comparative market analysis (CMA) is a side-by-side comparison of similar homes for sale as well as homes that have recently sold in your neighborhood. REALTORS®use CMAs to compare the features that make each home unique, including age, location, number of bedrooms, baths, room sizes, updates, condition, etc.
As a seller, you should be able to see where your home fits -- in the top or lower price range of similar homes. For example, if a similar home to yours has been recently renovated with a new kitchen, expect it to sell for more than your home if your home has not been improved.
An appraisal is a market analysis performed by a professional appraiser using a variety of sources, including multiple listing system data and conforming loan formulas.
Appraisers most often work for lenders to determine market values, so that lenders can weigh the risk of making a loan to a homebuyer. Appraisals come after an offer is made when the buyer applies for a loan. Even though the buyer pays for the appraisal, the lender uses it to determine whether or not to make the loan at the contract price.
Other market data
Your REALTOR®has access to data that may not be public through the Multiple Listing Service. This data is provided to broker members to track market trends over weeks, months and years. Some brokers pay data companies for specific markets that help them plan their business, such as the number of listings on hand, which zip codes are the hottest, and whether closings are trending up or down over last month or last year.
Your REALTOR®uses all this data to help you hit the sweet spot of pricing. That's high enough to reflect your home's value, but attractive enough to buyers to get it sold quickly.
Author:Ed Finlan Phone: 360-661-4593 Dated: November 18th 2015 Views: 720 About Ed: I have been fascinated with real estate & its potential to grow wealth my whole life and have been a...
About Ed Finlan Group - Keller Williams Western Realty
Ed Has been fascinated with real estate & its potential to grow wealth his whole life and has been a real estate investor since he was in his early 20's.
Ed has a background in Construction & Real Estate Appraisal and will use these as well as his interpersonal skills to help you find your dream home, a piece of property to build your dream home or help you sell your home or property. He is also here to help you with your real estate investment needs no matter what level of investor you are.
Ed grew up in the Arlington, WA area and moved to the Skagit Valley in the late 80's. He was a Law Enforcement Officer for about 10 years as a K9 handler while at the same time assisting in his family's custom home building business. After being injured and leaving Law Enforcement he continues t o help in his families construction business and has also worked in sales and appraisal. He is married with a blended family consisting of 2 children and 2 step-children as well as a new grandson. He enjoys home brewing and wine making and is very active as a soccer referee.
Experienced in all aspects of construction and building as well as design & development.
Several years of residential home appraisal experience.
Highly skilled negotiator.
Familiar with all area's of Whatcom, Skagit, Snohomish & Island Counties.
Thoroughly versed in all aspects in home selling and buying.
Customer service friendly.
Knowledgeable about Real Estate Investing
Areas of Expertise:
Residential-Buyers and Sellers
For Sale By Owner assistance
Selling homes that other agents could not sell
Buying at the trustee (foreclosure) sale
Locating properties that have a good cap rate and cash flow for investment
Locating properties that have a good potential to rehab & resell (flip) for investment