How We Approach the Market to Price Your Home
The real estate industry has done a great job keeping up with the latest technology to increase the effectiveness and ease of navigating the buying and selling processes. However, not all real estate agents are as forward-thinking with their approach pricing a home.
The Comparative Market Analysis (CMA) is a pricing tool that the real estate industry has used for years to help determine a fair asking price for a home. The problem is that using the CMA alone does not help sellers get the most money for their property.
Actually, numbers show that homeowners using the CMA alone get nearly 10 percent less than their asking price.
Why does this happen?
The Comparative Market Analysis only looks at some homes in the same price range as your home. This analysis does not take into account other factors that could have reduced (or increased) the price of certain homes. Things like a dated interior, low curb appeal, staging, and divorce can all affect how a home sells.
When a real estate agent focuses on the CMA as the only way to determine a price, market data can be easily skewed based on the homes the agent uses as a comparison to your home. This could cost you thousands of dollars.
Our Approach is Different:
We approach pricing homes from multiple angles to ensure a good asking price.
1. We review the national housing market. This includes looking at interest rates, the financing climate, and the inventory of our local market.
2. We examine the local market. We compare supply and demand (what types of homes are selling, what buyers are looking for and what is available) and figure out where your home falls.
3. Then we look at homes that are similar to yours. This allows us to give you a more accurate assessment of your direct competitors.
A more thorough approach to pricing your home puts more money in your pocket.