Seller Pricing The Comparative Market Analysis (CMA)
We log onto the Multiple Listing Service computer and pull up houses in the neighborhood in ALL of the following categories for the prior 12 months.
ACTIVE - Currently listed for sale
PENDING - listed but under contract and not yet closed
CLOSED - Most important . . . so speaketh the market.
We compare these homes with your home addressing: CONDITION, LOCATION, SQUARE FOOTAGE, SPECIAL FEATURES, LOT SIZE, COMPETITION, PERSONALITY
We analyze this data WITH you to determine a price both agreeable to you and competitive in the current market.
Pricing your home
80% of the marketing of your home . . . is done when you decide what price to ask.
The first 3 weeks are the most productive time for selling your property. Studies show that the longer a property stays on the market, the LESS the seller will net at closing.
IT IS ESSENTIAL To price your property at a competitive market value FROM THE START.
Our market is SO competitive that even over-pricing by a small percentage can mean that your home will not sell. Interestingly enough, your first offer for sale is usually your best offer. According to the National Association of REALTORS (NAR) if your home has had 10 showings and no offers, statistics show that the home is either over-priced and needs a price reduction or the condition of the property must change (i.e. carpeting replaced, wallpaper removed and painted, or updating of kitchen and/or baths). If after 2 weeks, you have had no showings it is an indication that the price is too high and a price reduction is in order.
Some reasons to price your property at market value from the START!
Sits on the market - will not net you the most amount of money in the shortest amount of time.
Minimizes offers as other like-kind homes are priced more competitively and the buyers KNOW the market.
Lowers agent response - agents are aware of over-priced listings and don’t like to show them.
Wastes YOUR time - Showings can be intrusive and inconvenient – and even more so when no offers are made!
Limits qualified buyers - Buyers in the TRUE market range are eliminated. They never see the property.
Limits financing - Lender appraisals almost always kill the deal in over-priced homes.
Wastes advertising dollars - Ad dollars are ineffective when the property is over-priced.
Nets LESS for the Seller - Owners continue to make unrecoverable interest payments to their loan.
Makes buyers suspicious of Sellers - Sends a message to the buyer that the Seller may be unreasonable to deal with.
We realize that pricing is NEVER this simple because everyone has his/her own ideas of value so we offer the following discussion points at this stage. We want to make sure you price your home to fit your specific needs based upon YOUR motivation to sell. We do NOT want to "leave money on the table." Pricing too low is money out the window.
Pricing slightly under the market = quick sale
Pricing "tight" with the market = moderate sale
Pricing over the market puts you at a distinct disadvantage. People will play the waiting game with you. Your home will become "stale."