Do I really need a CMA to price my property?

Do I really need a CMA to price my property?

ANSWER:

Houses are a commodity, which means they will be bought and sold at the price the market will bear.

Overpriced homes only sell when there is a “perfect storm” shortage of real estate inventory in a “sought after” neighborhood.

The longer a property stays on the market, the more expensive it becomes to sell.

Consider all the additional costs to keep the home in “showing shape” as well as ongoing costs for utilities, landscaping, mortgage and insurance. Below-market value homes will always sell because they can be immediately resold for a profit. The original seller is the loser for leaving money on the table. There is a fine line between selling a home for as much as possible and overpricing. Be intelligent and flexible. A comparable market analysis, or CMA, is a good bench mark for what your local market will bear. A CMA will help you understand what similar homes in your neighborhood have sold for in the past. Use this information to decide whether you want to push the envelope to try to “max out” your sale price or price your home in alignment with the current market for a quick sale.

Click here to learn more about what a CMA is.

A few other thoughts on pricing your home:

  • The asking price is not the same as the appraisal price. The appraisal price determines how much a lender will loan to a prospective buyer.
  • Your asking price may not reflect the true market value of the home. Planned future constructions, anticipated changes in the neighborhood and zoning changes may have an impact on the price of your home, even though these factors may never come to pass.
  • Your listing price is not permanent. You should be prepared to negotiate. Many sellers have refused a solid early offer only to see interest in their home decline over time.
  • Interest rates can affect price…because interest rates impact the final monthly mortgage payments for the buyer.
  • Location also dictates price. Identical homes in separate neighborhoods will command different prices based on the allure of the neighborhood.
  • You can always price the house a little bit higher to make allowances for repairs or improvements during closing…BUT BE CAREFUL! This strategy might price your home out of the market.
  • Always be clear on what is included in the sales price. Exclusions such as removable fixtures, appliances, draperies, etc., should be written into the contract.

 

A CMA is included with each of our listing packages. However, if you want to purchase a CMA only, visit our order page, and we will call you to get the below information:

What year was it built?

How many square feet?

What is the name of the subdivision?

How many bedrooms?

How many bathrooms?

What is the lot size / acreage?

Is there a pool on the property?

By | 2015-04-14T23:22:52+00:00 April 14th, 2015|Pricing Questions|