Pricing Your Property

In order to help you choose the most appropriate pricing strategy and to estimate the market value of your home, your agent will create a Comparative Market Analysis (CMA) to compare its location, condition and layout relative to its closest competition and to the most recently sold homes in the area.

The key to determining the most accurate pricing strategy is in your agent's analysis and interpretation of the data. The CMA will also provide you information on how long it took those properties to sell (days on market, or DOM), which is usually a good barometer of how closely a property sold relative to its listed price – the lower a home's days on market, on average, the higher price you should expect. You and your agent should consider the results of the CMA and the average days on market relative to your needs in determining the pricing strategy for your home.

Some factors to consider in your pricing strategy:

• Similar sized homes in your neighborhood
• Supply and demand
• Interest rates
• Location
• Condition
• Layout

Some qualities that you may be surprised to know DO NOT factor into the market value of your home:

• The cost of renovations or upgrades you have put in
• The price you need or want to get
• What another agent, neighbor, family member or friend told you (without substantiating through a CMA)
• The price you paid plus any published growth factor

Dangers of Over Pricing

• An asking price that is beyond market range can adversely affect the marketing of a property. Marketing time is prolonged and initial momentum is lost
• Fewer buyers are attracted, and fewer offers received.
• The property attracts 'lookers' and helps competing houses sell
• If a property sells above the true market value, it may not appraise, and the buyer may not be able to secure a loan.
• The property may eventually sell below market value.