Today’s real estate market requires a down-to-earth pricing strategy. Determining a price for your home requires the consideration of several variables:
- How eager are you to sell your home? The greater your urgency, the more realistic the price needs to be.
- How quickly are homes in your neighborhood selling, and how much competition do you have? When there is less competition with other listings (more demand/less supply) prices are higher.
- What extras does your home offer that will help it to compete with other homes in the price range?
A comprehensive market analysis will help you to understand the trends of demand and supply in the real estate market by examining not only past sales of homes as similar to yours as possible, but also the current market competition. A market analysis, or “CMA,” will also attempt to predict a reasonable listing price based on the current market competition.
An appraisal from a certified appraiser will give you an idea of the current market value of your home, but it will not provide you with an assessment of pricing strategy. In today’s world, pricing your home is more of an art than a science and requires a thorough understanding of the local real estate market. We look at the absorption rate (the percentage of homes sold relative to those on the market) as well as examine data on specific properties. If there is a 15-month supply of homes in your neighborhood, we must price your home more aggressively if we are to be successful. A four to six-month supply of homes is typically considered a healthy market that can tolerate the testing of a higher price.
We want your home to sell for as high a price as possible. We do not try to “buy” a sale by sacrificing your equity; we want to put as much money in your pocket as possible! To do this we often have to be realistic when we set the listing price so that we don’t lose the market and fail to sell your home.
Pricing your home too high will place it in a category in which you will not be able to compete with other homes in that price range. For example, if our market analysis suggests that your home will sell for $350,000 and you decide to price it at $425,000, you will be competing with homes in the $400,000s which will likely offer more features and amenities.
You are in charge! At Lynn Hayes Properties, we recommend a listing price but we understand that this is your house and your money, and we respect your right to set the price at which your home will be marketed. Our careful followup and continued monitoring of the market will provide you with the data we need to see if our pricing strategy is working. We want to be aware of changes in market conditions which may require a change of strategy.
Ready to hire us? Send us an email, fill out this form for a comprehensive analysis within 24 hours, or call us at 919-968-9989.