Proper List Pricing

What would an upward or lower price adjustment look like based on the current market CMA?  Well, let’s look at an example.  Let’s say that the CMA of previously and recently sold similar homes shows that the listing price should be around $235,000.  However, those sales were between one month and three months old.  Our current market listing CMA shows that similar homes in the neighborhood are listed at $249,000 or thereabouts.  Me and you may decide that the market is improving and justifies raising the listing price of your home to $245,000 so that it’s still competitive but a better deal for you.  Of course, this can work the other way as well.
 
A proper list price that reflects current and realistic market conditions is critical to getting your Bermuda Run, Bethania, Boonville, Clemmons, Cooleemee, Danbury, Dobson, East Bend, King, Lewisville, Madison, Mayodan, Mocksville, Mount Airy, Rural Hall, Stoneville, Tobaccoville, Walkertown, Walnut Cove, Yadkinville, Winston Salem, Alamance, Asheboro, Biscoe, Burlington, Green Level, Denton, Elon, Franklinville, Gibsonville, Graham, Haw River, High Point, Archdale, Jamestown, Kernersville, Eden, Lexington, Liberty, Mebane, Milton, Mount Gilead, Oak Ridge, Pleasant Garden, Ramseur, Randleman, Midway, Reidsville, Seagrove, Sedalia, Staley, Star, Stokesdale, Summerfield, Thomasville, Trinity, Troy, Wallburg, Welcome, Wentworth, Whitsett, Yanceyville, Greensboro, Elkin, and Jonesville real estate property sold quickly. I don’t want you to under–price, but it’s worse to over–price in any market. Buyers discount value by DOM, Days On Market. The longer a home stays on the market, the greater they’ll discount their offers. So, a realistic list price is how I make sure your property sells without languishing on the market.
 
How do I come up with a suggested list price that reflects your home’s competitive position? It’s a combination of services and experience, and I'm going to be very careful and detailed in my analysis and market evaluations to make sure that you don’t leave money on the table or sit around wondering why you aren’t getting offers.
 
My evaluation of how your property compares to the current competition is the first step. Then we may suggest some worthwhile corrections you can make to improve that position. Once I know what your home will look like when listed, I’ll go into our thorough CMA, Comparative Market Analysis, process.

CMA of Sold Properties 
First I select comparable properties out of those sold recently and in the neighborhood or nearby. These “comparables” or “comps” are selected based on similarity in features, location and characteristics with your home. They must have been sold as recently as possible so the sold prices are of maximum value.

I then do a through “adjustment” process to adjust their sold prices for any differences with your property. If a home has one more bedroom than yours, I would adjust that property’s sold price downward for the value of one bedroom to make the comparison “apples to apples.” I make adjustments for garages, bathrooms and other major features to bring our comps to closely compare with your home. Then I use those sold prices to arrive at a preliminary listing price for your home.

I say “preliminary” because I have another CMA step.

CMA of Current Listings 
Now I get more comps, but instead they’re properties currently listed and your competition. I go through the same adjustment process, and I come up with another, possibly higher or lower, price suggestion for your home. This second CMA gives me more up–to–date information about the market which could cause us to lower or raise our preliminary list price to adjust to the current market. Using the two CMA results and an experienced analysis of your home’s position in the marketplace, we can set a listing price that will get the job done.
 

If you’re putting your home on the market, especially if you live in an area where prices are going up and buyers are competing for homes, you may be tempted to try listing it at a high price just to see if you can get it.

Experienced Realtors® will tell you that pricing your home appropriately from the beginning is critical to getting it sold quickly and at the best price. Research shows that overpricing your home and then dropping the price several times while it languishes on the market usually leads to selling it at a much lower price than what you originally should have asked for it. The longer a home stays on the market, the deeper the discount is likely to be off the original price.

For example, according to McEnearney Associates, a McLean, VA, real estate company, homes that sold in August 2013 within their first week on the market sold for an average of 2.08 percent above list price. Homes that lingered on the market for four months sold for an average of 11.53 percent below their original price.

How to price your home correctly

Many homeowners want to set their list price based on what they paid for their home, the balance of their mortgage, or on the profit they want to make so they can move into another home. In reality, your home is worth only what the market will bear. If you price your home too high, some potential buyers won’t want to look at it at all, while others will simply walk away without making an offer.

If you’re interviewing several Realtors® to choose a listing agent, you may be tempted to pick the sales professional who suggests the highest price for your property. But sellers, like buyers, need to beware. The Realtor who provides the best comparative market analysis and explanation of how your home should be priced will be more likely to sell your home quicker and for a higher price than someone who tells you only what you want to hear.

A comparative market analysis should include sales prices for similar nearby homes that sold in the last month or two. In addition, many Realtors® include prices for homes currently on the market that will be your competition, as well as homes taken off the market because they didn’t sell. Other data Realtors® can use to suggest a price range include how many days homes were on the market at various price points and the average difference between the list prices and sale prices on homes that have sold.

Your Realtor can help you estimate who might want to buy your house and what else those buyers are looking at so you can measure your price against the competition.

A knowledgeable Realtor can factor in all of these issues in the context of your local market conditions, including whether home prices are rising or falling and whether it’s a buyer’s or seller’s market.

Choose the right professional to help you with your home sale and then listen to your Realtor’s advice and your transaction is more likely to go through quickly and smoothly from the beginning.

Find Nearby

  • Hospital
  • School
  • Pharmacy
  • Airport
  • Bank
  • Post Office
  • Nursing Home
  • Church
courtesy_mls.png

Get-a-Free-Home-Evaluation.jpg
 
See-What-is-on-The-Market.jpg
 
How-We-Market-Your-Home-Online.jpg

Contact Info
Agent
Realtor | Broker

Michael Jones

RE/MAX Of Greensboro

204 Muirs Chapel Rd
Greensboro  North Carolina 27410

(336) 750-6453 (800) 950-6453 (336) 346-1280

Facebook
Social Media

Our RSS Feeds
  • Global Pros Shaping an Industry 21 Apr 2017 10:40:00 ES

    In March, more than 6,000 real estate professionals representing 60 countries attended the annual RE/MAX R4 Convention in Las Vegas. Even among the highly energized crowd, the international groups stood out, waving flags, singing national songs and boisterously cheering on their colleagues.

  • 5 green home improvements that can help sell your home for more 20 Apr 2017 11:15:00 ES

    Demand remains high for energy-efficient, eco-friendly home features, according to a survey by the National Association of Home Builders. In fact, the majority of builders now put energy-efficient windows, heating and cooling systems, thermostats and appliances in their construction, the survey says. If you’re selling your home and hope to compete with new construction — as well as set your house apart from other resales — making green improvements could significantly pay off.

  • Finally, a True Picture of Asian American Homeownership 14 Apr 2017 10:56:00 ES

    “Real estate professionals who take time to learn more about the unique needs and challenges of the AAPI community position themselves to provide better service and offer more value to customers,” stated Geoff Lewis, president of RE/MAX, LLC, which presented the report.

  • Small nest egg, big dreams? Tips for buying your retirement home 28 Mar 2017 12:53:00 ES

    Planning for retirement means making a lot of decisions, including when you'll stop working, how much you'll withdraw from your savings each year, and where you'll live. Many Americans view retirement as an opportunity to move into a house they'll love and live in for all their golden years. In fact, 64 percent of retirees either have moved or plan to move, according to a Merrill Lynch survey.

  • 6 easy, affordable smart home features that could help you sell your house faster 10 Mar 2017 12:06:00 ES

    Fresh paint on the walls, professional staging and an asking price that ends in 999 — when you’re selling your home, you’ll do whatever you can to help it stand out and sell faster. Because the National Association of Realtors is predicting modest growth for the 2017 real estate market, as a seller you want every edge you can get. And on the heels of the popular Consumer Electronics Show in January, perhaps that edge is a smarter home.

  • Re/Max Agents Are House-Sellin' Know-It-Alls in These Fun Ads Directed by Roman Coppola 09 Feb 2017 18:29:00 ES

    Camp + King portrays Re/Max agents as helpful know-it-alls in these cute ads directed by Roman Coppola. “We were inspired by house hunting/DIY shows where they always focus on the latest trends,” agency creative director Rikesh Lal tells Adweek. “The home-buying process is heavily influenced by these shows, so we played into that culture to show there’s more to buying a home than what the wainscoting looks like or what your friends think.”

  • Mortgage rate increases dampen refinancing 30 Nov 2016 17:29:00 ES

    With mortgage rates ticking up as investors anticipate the Federal Reserve raising interest rates in December, the cost of borrowing is increasing, and that's leading some new-home buyers to speed up their purchases, while discouraging homeowners from refinancing existing mortgages.

  • Autumn and early winter: The best times to be a homebuyer? 21 Nov 2016 13:48:00 ES

    The long-held belief that summer is the only time to buy a home is fading fast. Savvy home-buyers are learning that when temperatures drop, numerous benefits emerge that simply aren't available other times of the year.

  • First-time homebuyers: You're closer to a down payment than you think 13 Jul 2016 12:45:00 ES

    For many first-time buyers, saving for a down payment is the most difficult step in the home-buying process. However, it's a common misconception that you need 20 percent down to buy a home. Actually, lenders across the country offer mortgage products with very affordable down payments — some as low as 3 percent.

  • REW Online: All Eyes on Suburban Workhorse as it Makes Fresh Push into NY 08 Mar 2016 11:15:00 ES

    RE/MAX is the top story featured in the March 2, 2016, Brokers Weekly section of Real Estate Weekly magazine.