Column - January 2020
How RE Agents Determine Listing Price Opinions
A Comparative Market Analysis (CMA) is done to set an accurate and realistic property price. A CMA compares similar homes sold in a neighborhood and considers many factors about the seller’s property, such as: age, square footage, and number of bedrooms and baths.
But that isn’t the whole story and shouldn’t be all that is considered! Neighborhood amenities, location, school districts, commutes to major employment centers, property condition (most buyers are turned off by ‘fixer-uppers’), external forces such as road closures, re-routed highways, traffic congestion, etc. and other items are also heavily considered by buyers and must be weighed in a pricing decision.
It is also important to know what price is entirely unacceptable to buyers. To do that, an agent looks at area expired listings (homes that were listed for sale – but, did NOT sell). These tend to reflect unrealistic and inflated prices.
When selling a house, it's vital to price it correctly. Too high and the house stays on the market forever, while other homes in the area are bought. Too low and the seller doesn’t get fair value in the sale.
If a seller is interested in a quick move, they need to know how long neighborhood homes stay on the market. This information is used to further inform the seller and provide realistic expectations of how long the house could be on the market and whether they can expect to obtain their full list price. Sellers should know that buyers pay attention to good deals, many times regardless of quality, when the market is extremely competitive.
Savvy buyers will also make use of an agent who will do a buyer’s CMA to ensure that they're getting a good deal on their housing purchase.
Who are you going to call to learn more about the local market, the value of your home and to help make Your Real Estate Dreams Come True? Why me of course! See you next month!
RE Questions? Email: firstname.lastname@example.org call/text to (210) 608-0650.
Gina M. Sohmer, is a veteran, a Graduate of the REALTOR® Institute, a Seller’s Representative Specialist, an Accredited Buyer’s Representative, a 2019/2020 Winner of the Nextdoor Neighborhood Favorite Award, and a REALTOR® with eXp Realty, LLC.