YOU are considering selling
your home. Most people know exactly what there home is
worth to a potential buyer and the marketplace. You’ve thought long and hard about
it’s worth. You’ve added up all the nice amenities
you’ve added since you bought it and you know its
worth. And if you want to feel even better about what price
to use when you put on your home on the market, just ask
your friends and neighbors. We’re sure you will be
pleased by what everyone tells you and can’t imagine
that your home could possibly be that valuable. “We’re
going to make a bundle on the sale of our house!”
NOW THE TRUTH!
We’re always good for an age-old adage. Here’s
one that fits this special occasion: “The
Buyer determines the price for your house, not the Seller”.
Interesting thought…why is that?
We are sure that you would consider
yourself a good competitive shopper. You compare prices,
models, extras and before you buy something, you feel
good that you are not going to pay a nickel more than
you should to get this beautiful “thing” you
wanted to buy. Guess who is doing the same thing…the
person or family that wants to buy your house. Buyers are
now educated, intelligent, savvy, and more often than not,
represented by an incredibility successful real estate
agent who does this for a living.
WHAT SHOULD YOU DO?
Have a Competitive Market Analysis
(CMA) completed by one, two or even three real estate
agents. Why a CMA? Understanding the value of your home
is not as easy as asking your neighbors. But it is, by
far, the most important thing to consider when selling
your home. A CMA can give you a solid basis for the reasonable
pricing of your home. I would call this your “Best Price”. Why is a “Best Price” important?
The price at which your house is marketed must draw enough
attention among buyers to produce showings and offers for
you. So, thank your neighbors then call in a few real estate
agents to help you determine your home’s Best Price
to use when marketing your house.
WHAT IS A CMA?
A Competitive Market Analysis (CMA)
is a tool you can use that helps you be aware of what
Buyers are prepared to pay for a house in today’s market. Since Buyers
shop competitively, as you do, it is a fact they don’t
want to pay a nickel more than your house is worth. Where
have we heard that before?
A CMA looks at similar properties
that have recently sold and what buyers were willing
to pay for them. It will also show you some properties
that you will be in competition with when you put your
home on the market or those properties currently available.
Lastly, it will show you properties that buyers refused
to pay for in our current market. These are properties
that did not sell. This should help you understand the
range of pricing possibilities in today’s
market.
Most people are not aware of what
affects the value of their home. Here’s a list
of things for you to consider:
Items that affect your value but you have NO CONTROL
OVER:
- The Location of your home
- Your home’s age
- The current Interest Rates
- The number of Competitive Properties
- The Size and Style of your house
- The prices paid for other recently Sold Properties
- The State of the Economy
Items that have NO AFFECT ON THE CURRENT VALUE of
your Property:
- What you initially paid for your home
- The amount of money you NEED to get out of the sale
- What your neighbors and others say is the value of
your property
Lastly, most people, when they have decided to sell their
home want it to go quickly so there are a couple of things
to think about BEFORE you put your home on the market:
- There is a risk of overpricing. If
you price your house above a reasonable market value,
it may take longer to sell.
- When houses come on the market,
there is always a rush by agents looking for homes
for their clients. They will show your home if the
price is realistic. If it’s
too high you, the seller, miss that initial excitement
about having your home on the market. Then you wonder
why no one is looking at your home.
- Lowering your price later means admitting to everyone
that you were not being competitive then and now you
may need to lower it even further to compete with other
Best Priced homes.
So, get a Competitive Market Analysis (CMA) today! They
are usually free and real estate agents will also help
you understand the marketing approach they feel would be
most appropriate for your home.
Don’t be afraid to get a CMA. You’ll
be able to put your house on the market at a price that
should drive in the Buyers and before you know it, you
are packing! Good Luck! |
