“The Secret To Selling Is Proper Price Positioning!”
Here is what you really need to know about how to price your home! The right price is not based on “What you paid for it”, “What your neighbor’s house sold for” or “The amount of money you need from the sale”, “Your personal attachment to the home” or ‘ what some broker told you your home is worth in order to win your listing”. The most creative comprehensive aggressive marketing plan is useless if your home is overpriced!
How to price your home is both an art and a science.
State of the art technology allows brokers to get a very detailed comparable pricing analysis based on many variables. The art is being able to interpret this data correctly and take into careful consideration all the nuances that could impact price positively or negatively after previewing the home.
Here is an overview of the most important data needed from a comparable pricing analysis report that help determine the baseline market price of your home.
• Active comparables on the market – This is the easiest way to get the mostly likely price range where your home would be positioned to sell.
• Pending comparables – This data and knowing the signed contract date is very important because this is real time data. Sold data can be from a year or two years ago. The use of this data is especially critical during faced paced markets where prices are rising quickly.
• Sold comparables – Best sold comparable homes are those that sold in the last 6 months however in a slower paced market a year is a good rule of thumb.
After the above general data is analyzed then a further fined tune analysis needs to be conducted on the following criteria:
The other piece of valuable information you need to know when pricing a home is the absorption rate which is the rate which available homes are sold in a specific real estate market during a given time period. The rate determines whether we are in a balanced market, seller’s market or buyer’s market.