How to Price Your Home for Sale: CMA and Beyond

The comparable properties included in a CMA should be similar recently sold homes. When selecting “comps,” the date of sale, location, and size of a home are the most important factors, but amenities, floor plan/style, age, number of bedrooms/bathrooms, garage size, improvements, and potential negatives may also be considered.

Also Read:

Insider Home Staging Tips: Here’s How To Sell Your Home Fast and For The Best Price

When reviewing a CMA to determine sales price on a particular property, it’s also helpful to examine the following:

Competing properties:

These are substantially similar homes that are currently listed for sale. Since they haven’t been sold yet, they’re usually distinguished from other “comps” in a CMA. Buyers know that sellers are competing against these properties, so it’s important to factor currently listed homes into the pricing strategy.

Days on market:

May indicate how appropriately a property has been priced for sale, especially when compared to absorption rates. If, for example, the absorption rate is two months, but a competing property has been listed for over three months, a potential buyer of that property might have a stronger negotiating position.

Absorption rates:

Are used to analyze the strength of a market, in terms of the supply and demand for current competing properties (the number of homes on the market relative to the number of homes sold). A low absorption rate indicates that sellers are in a stronger position, whereas a high absorption rate is favorable for buyers.

Sales price/List price ratios:

For specific categories of homes, statistics for Sales price to List price ratios will help you understand how much less than the listing price you can realistically expect to achieve.

Sellers

• Sellers receive a fact-based, objective assessment of their home’s value

• Sellers don’t experience the stress and disruption that can occur when homes languish on the market.

• Sellers are protected from undervaluing their home, to their financial disadvantage.

• Sellers avoid the delay that occurs when they accept a high offer and the property does not appraise.

Buyers (experienced buyers’ agent will create CMA for their clients)

• Buyers receive fact-based, objective information about homes where they might not be familiar with the local market.

• Buyers are less likely to lose the home they really want because their offer is too low.

• Buyers are less likely to encounter problems obtaining a mortgage because the house appraises below offer price.

• Buyers are less likely to overpay for a home, thus preserving financial resources for other important home and life expenses.

Professional Home Appraisal

As a special service to my clients, I offer another very effective method of pricing your home – Professional Home Appraisal. When you list – and close – your home with me, I’ll pay for a pre-listing appraisal.

Benefits of having a professional appraisal:

• You receive an unbiased third party opinion of the market value of your home by a trained professional.
• You are positioned to quickly recognize and respond to a market offer.
• You are positioned to effectively challenge a low lender’s appraisal of your home, maintaining your higher contract price. A lender will consider a well-known appraisers valuation – they will not consider an estimate provided by a real estate agent.
• You avoid the common practice of a real estate agent “buying your listing” by suggesting a higher price than can be achieved. Because the agent would then be reluctant to suggest a price reduction early in the marketing process, you lose valuable time during those critical first several weeks on the market.

Your real estate agent is your best resource for professional insights on current market conditions. With your agent’s assistance, you’ll be in a better position to make an informed and realistic decision on  the sales price of your home.

If you are ready to make a move, please contact me to schedule a free no obligation Seller Consultation.

Natasha Lingle Your Pricing Strategy Advisor (PSA).

And please, don’t forget to download

My Sellers’ Guide:

“Learn How to Have a Successful Home Sale”

This guide is a supplement to the information provided above, and it describes in detail traditional and modern marketing techniques and lists my real estate services you can expect me to provide including:

• Accurately pricing your home.
• Enhancing the perceived and real value of your home, enabling you to command a higher asking price by using latest marketing techniques.
• Providing unmatched marketing including professional staging, photography, video and custom property web sites.
• Showing latest statistics on how buyers search for homes today.
• Securing a qualified buyer within your specific time frame.
• And More!

The best part is, my Guide is free and available to download right now.

Just provide your name and email, and I’ll send it directly to you.

[red-button url=”https://natashabackupadmin.truedes.com/have-successful-home-sale/”]Download Your Seller’s Guide HERE[/red-button]