Establishing the market price for a home is a very important part of the Sale. A great deal of time and effort is invested in a seller’s home, and the same should be put into determining it's value. It is necessary to perform a Comparative Market Analysis (CMA) to establish market value.
I have access to information and tools to be able to do this thoroughly. Before listing your home, I not only perform this type of in-depth market analysis, I also apply my knowledge of emerging market trends and view comparable properties on an ongoing basis. My report, tailored to your property, will thoroughly study recent sales and current listings in your area. From this analysis, I will recommend a list price-range. However, the list price is ultimately your decision.
There are three main pricing strategies used in the real estate market: Pricing above market value, at market value, and below market value.
Priced Above Market Value
Sellers like to price their homes high, hoping that a buyer might just pay the asking price. Unfortunately, this is unlikely, as today’s buyers are extremely well educated. With the information available on the internet, buyers understand the market value of the homes that interest them. Pricing above the market is especially dangerous in a falling market, where prices are adjusting downward and supply outweighs demand.
In a falling market, the seller runs the risk of “chasing the market down” and ultimately selling for less than if the home was listed properly in the first place. Homes priced above market value may take longer to sell, which can also cause a property to become stigmatized. However, sometimes this strategy can work in a rising market, where demand outweighs supply.
Priced at Market Value
Always a good strategy – this is what your home is worth in a perfect market. As all property is unique, determining the market value is both an art and a science.
Priced below Market Value
This can be an excellent strategy as long as safeguards are in place, such as only reviewing offers after a specified period of time. Buyers like, and recognize a deal. Pricing below market value may set up an auction-like atmosphere, where several buyers bid for your home and sometimes bid-up the price. This strategy can work well in a falling market, attracting attention to your home in a situation where there is on oversupply of housing.
Let's get together and discuss the best pricing strategy for your home!