Pricing is likely your biggest concern in selling your home. You are probably wondering, “How will you determine my suggested listing price?” This is a great question as pricing your home correctly is absolutely necessary in order to sell.

I will extensively research homes comparable to yours that are currently on the market, pending or have recently sold. I also review listings that expired or were cancelled prior to selling. I will use this information to prepare a Comparative Market Analysis (CMA). CMA preparation is something you can expect most agents to do for you. While considering comparable sales is extremely important, it is necessary to consider more than historical data to determine an accurate listing price. It is also essential to consider current market conditions as it is likely that the market has changed since other homes have sold.

In addition to analyzing recent sales I:

  • Determine the odds of selling.
  • Assess the number of listings that are active on the market vs. the number of listings that are pending. This enables me to determine market ratios and identify whether we are currently in a buyer’s market, balanced market, or seller’s market. "We still can’t believe you were able to sell our home in Harbour Point in less than 30 days, even in a declining market. We are very impressed with you and your team, from the lender to home inspector and even your color coordinator and window washer. At a time when honesty and trust is not always easy to come by, we wanted you to know how much we appreciate what you have done for us. We are so happy we put our trust in you because we would not be where we are today without you!"

    - Ted & Debbie     This is critical information that has a significant impact on the pricing of your home. If the data indicates the market is to the sellers advantage, you may opt to price your home fairly aggressively. Conversely, if we are in the midst of a buyer's market, it will be necessary to price your home more competitively.
  • Monitor competing listings. It is important for us to be aware of the competition, along with price adjustments and other changes applied to competing homes.
  • Review the number of days homes are spending on the market. Comparing your timeframe to sell with the average number of days homes are on the market may impact your listing price. For example, say you are relocating to a different state for employment in 60 days, yet the average market time for homes is current 180 days. This information may lead you to apply a more competitive asking price to your home than you would if the average market time was 30 days.
  • Track absorption rates to determine how many months of inventory are currently on the market.
  • Note the average price per square foot for recently sold homes.
  • Calculate original list prices vs. sales prices and final list prices, for homes that have had price reductions, vs. sales prices to identify averages and trends.
  • Consider market appreciation rates
  • Monitor buying patterns to see if there are seasonal trends in sales of similar homes.
  • Review assessed values vs. the sales prices of recently sold comparable homes to determine the ratios. This enables me to identify if there are any consistent current market trends between assessed values and sales prices.

Your pricing strategy will have a direct correlation with whether or not your home will sell and the corresponding timeframe. I will educate you about current market trends and conditions and will help you determine a list price that will attract buyers and provide the greatest possible return on your investment. Ultimately, my research and analysis yields data that is necessary to provide you a competitive position in the marketplace.

It is important to consider your odds of selling are highest when your home is new on the market. The reason for this is your home will receive the most interest and excitement from agents and potential buyers when it first enters the market. As a result, it is critical to price your home accurately from the start. Of course too low of a list price would not allow you to realize the highest net possible on your sale. On the other hand, an excessive listing price will not attract agents or buyers and your home will begin to accumulate days on the market.

An extended market time is counter-productive as statistics from the Multiple Listing Service demonstrate a correlation between the number of days homes spend on the market and price reductions. At the same time, the costs of keeping the home, such as property taxes, utility expenses, and interest on the mortgage, continue to accumulate. An extended market time can also lead potential buyers to assume there is something is wrong with your home and they may decide to forgo it altogether. As a result, it is more strategic and cost effective to have a competitive listing price from day the "For Sale" sign goes up rather than "testing the market."