Pricing a home correctly is defined as pricing a home in a price range of comparable other homes sold in the last 3 to 6 months. A home priced more than 5% under the lowest sale may be considered under priced. A home priced more than 5% above the highest sale would be considered overpriced.
In considering a list price, you might want to think about…
- Appraisal: What is the highest potential appraisal value of my home? One of the main reasons to price a home correctly is to avoid appraisal issues. Even when a seller sells a home above the market value, if the lender’s appraiser will not support the sales price value, the home will only close at a price the appraiser will support.
- Comparative Market Analysis: Most real estate agents are able to perform a Comparative Market Analysis (CMA) when a current appraisal is not available. A comparative market analysis should give an accurate idea of how your home stacks up against comparable sales within a mile radius of your home. All comparable sales used should be no older than 6 months to give a correct approximation of the current market.
- Pending Home Sales: Pending Listings or homes that are currently under contract waiting to close escrow may indicate where the market is headed. If pending properties are selling for less than previous closings, then the market is declining. If pending properties are higher than previous sales then the market is appreciating.
- Active Home Sales: How many homes are active in the MLS in your area? This is important, because this is a list of your competition who are seeking to steal your buyer! The winner gets to move, and the loser gets to wait for the next buyer.
- Location, Conditions, and Terms: Keep in mind that if your home has issues in any of these areas, buyers will want a discount the price to deal with the issue. If you are able to fix the issue up front, your home is much more likely to return market value and to sell quicker!
Do you want to learn more about this or other ways to get the most money from your sell? Contact us at (602) 753-0177 or www.ThompsonGroupAZ.com.