Ideas By Sky

No matter how identical two houses may appear, no two parcels of real estate are ever exactly alike; each occupies its own unique charm and  geographic location.

Keep in mind. buyers can always relocate to areas with greater supply. The fact is you cannot relocate a property you like to satisfy your demand in another location. Therefore location will be the biggest factor when we price your property. For these reasons, real estate markets are local markets. Each geographic area has different types of real estate and different conditions that drive prices. In these small, well-defined areas, your agent will keep track of the types of property in demand and assist you to establish price.

There are 2 ways your agent/ broker can do this:

If you took my suggestion and interviewed with at least three different agents before hiring one of them, a good chance that you witnessed there was no single list price the agents suggested. Each broker has different perspectives, they may as well suggest different home values. The important thing is for you to understand where these suggestions come from.

When you interview your agent, she will give you a listing presentation. She will provide you a complimentary Comparative Market Analysis or what we call in short: CMA. The CMA will outline the proposed sale price, the reason for it, and include a marketing plan explaining how she expects to sell the property.

Pricing the property with CMA

Because the average seller usually does not have the resources needed to make an informed decision about a reasonable listing price, your agent should offer her knowledge, information, and expertise. Ultimately, however, you determine the listing price for your property.

Not all estimates of value are made by professional appraisers. Unlike an appraisal, which compares only recently sold properties, a CMA compares location, size, age, style, and amenities of properties that are comparable to the seller’s property, as follows:

• Recently sold properties—what buyers were willing to pay for a similar property and what lenders considered to be a value on which they make the lending decision
• Properties currently on the market—the competition to the seller’s property
• Properties that were listed but did not sell—generally, what buyers have been unwilling to pay for a similar property

Your agent will help you to arrive at a competitive asking price and/or buyers to make a fair offer. If no adequate comparisons can be made or if the property is unique in some way, you may prefer to have a professional appraiser prepare a formal appraisal.

Although you make the final decision about the asking price, your agent should help you to understand the consequences about setting a price that is substantially exaggerated or severely out of line with the CMA or appraisal. These tools are the best indicators of what a buyer will likely pay for the property and the basis on which lenders make loan decisions.

If your agent suggests or accepts an unrealistically priced listing, she will do you an injustice. An overpriced listing gives you false hopes. Also, your agent will have difficulty marketing the property within the agreed-upon listing period, costing you time and money. Failure to move an overpriced listing can also cost your agent future business opportunities as well. My best advice is to list your home with an agent whom you trust her judgment and expertise.