Market Analysis and Pricing Strategy
Analyze Prices of Comparable Properties
To begin the entire process of selling a home, a seller needs an objective valuation of the property. To obtain such a valuation, we will provide the seller with a comparative market analysis (CMA) that is comprised of:
- Current properties on the market.
- Properties that have recently sold.
- Properties that have recently sold, but haven’t yet closed.
Often we will be able to have comparable information within the same building, neighboring buildings or competing properties.
The properties used in this comparison must be comparable to the seller’s property in terms of location, size and type (i.e., Coop or Condo). This analysis will be the basis for the seller’s pricing strategy.
Visit Homes For Sale Like Your Own to Determine Value
We suggest that the seller visits other homes on the market to gauge the competition’s pricing. The seller must look at each property objectively and through the eyes of a buyer, leaving emotion out of the equation.
Pricing is Really Determined by the Market
Pricing a property is not an exact science, however, because pricing is very transparent in the US. The market, which is rather well educated about current home prices, will ultimately decide what the price of a particular home is worth.
It is important to accurately price the home at the outset, otherwise the property will languish on the market. If this happens, brokers and potential buyers will take note. Without seeing the property, these brokers will make judgments about why it hasn’t sold. For example, they will likely infer that there is something wrong with the property and, therefore, steer their clients away from it based on this blind assessment.
It is also very important for the seller to watch the market’s reaction to the home once it is listed for sale and adjust their expectations accordingly.
THE NEXT STEP IS TO SIGN AN EXCLUSIVE AGREEMENT.