PROPER LIST PRICING
How a price adjustment looks like based on the current market CMA? Well, let’s look at an example. The CMA of previously and recently sold similar homes shows that the listing price should be around $245,000. However, those sales were between one month and three months old. Our current market listing CMA shows that similar homes in the neighborhood are listed at $259,000 or thereabout. We may decide that the market is improving and justifies raising the listing price of your home to $255,000 so that it’s still competitive but a better deal for you.
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 Days On Market. The longer a home stays on the market, the greater they’ll discount their 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’ll go into our thorough CMA, Comparative Market Analysis, process.
CMA of Sold Properties
First, we select comparable properties sold recently in the neighborhood or nearby. These comparables are selected based on similarity in features, location and characteristics with your home. They must have been sold as recently as possible. After that we make the “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.” We adjust 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.
CMA of Current Listings
We also compare properties that are currently listed. We go through the same adjustment process, and we come up with another, possibly higher or lower, price suggestion for your home. 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 the job done.