Appropriate List Pricing For Your Property
Based on what the current market CMA (Comparative Market Analysis) is, what would a lower or upward price adjustment look like? Let’s consider an example. Say the CMA of recently and previously sold similar houses show that there should be a listing price of approximately $265,000. However, these sales occurred between one to three months ago. On our CMA of current market listings it shows that similar houses in the neighborhood have an approximate listing price of $279,000. We might believe the market is improving and that justifies increasing your home’s listing price to $280,000 to make it a better deal for you but still competitive. It could work the other way around also, if prices are falling in a bad market.
Having a proper list price that is a reflection of both realistic and current market conditions is crucial to getting your real estate property in Wellborn, Bryan and College Station sold quickly. Of course, you don’t want to under-price your property, but it’s even worse in any market to over-price. Buyers discount value based on Days On Market (DOM). The longer a house remains on the market, the more their offers will be discounted. So the best way of ensuring your property sells without lingering on the market too long is to set a realistic list price.
So how do we determine a suggested list price that is a good reflection of your house’s competitive position? It is basically a combination of experience and services. We will be very detailed and careful in our market evaluations and analysis to ensure that you aren’t leaving any money on the table or sitting around wondering why no one is making an offer on your property.
Evaluating Your Property
The first step is we evaluate how your property compares with the current competition. We might suggest you make some worthwhile improvements, upgrades or renovations to improve your situation. After we know what your house is going to look like when it is listed, then we will go through our Comparative Market Analysis (CMA) process.
Sold Properties Analysis
The first thing we do is choose comparable properties from those that recently sold nearby or in the same neighborhood. These “comparables” (comps) are chosen based on their similarities in characteristics, location and features that they have with your house. They need to have been sold recently so that these sold prices have maximum value.
Next we conduct a detailed adjustment process which involves adjusting the sold prices for whatever differences they have with your property. For example, if the house has one more bedroom compared to yours, then we will adjust the sold price of the property downward for one bedroom’s value so that the comparison is an “apples to apples” one. In addition, we will make adjustments for bathrooms, garages, and other major features so that our comps compare closely with your house. Those sold prices are then used by us to come up with a preliminary listing price to use for your house.
The reason why we say “preliminary” is due to the fact that there is another CMA step that we take.
Current Listings Analysis
In this step we use more comps. However they are your competition this time because they are currently listed properties. We use the same adjustment process to come up with another, potentially lower or higher, suggested price for your house. The second CMA provides more up-to-date information on the market which might cause us to make an adjustment to the current market or raise or lower the preliminary list price that we came up with. Utilizing our two CMA results along with an experienced analysis of your house’s position within the marketplace allows us to come up with a listing price to get the job done, and the most amount of money in your pocket.