Determining a Price With Your Realtor – “The CMA”
By: Darian Rausch, REALTOR
An important conversation that you’ll have with a member of the Urban to Suburban Realty Team is setting the price of your home.
First and foremost, homes should be priced at market value. A common definition of market value is “what a ready, willing buyer will pay, at a price a willing seller will accept”.
Using the many tools available to them, your Urban to Suburban agent will do a competitive market analysis (CMA) of your home in order to determine its market value. The CMA will compare your home to other houses in the area in terms of square footage, amenities, condition, and relative age. It’s best to compare “apples to apples”, and look at sales within the last 90 days and within your neighborhood. If comps are not available within your neighborhood, your agent will then look at neighborhoods nearby with similar features, etc. Again, the goal is to compare apples to apples.
You may want to provide a list of your home’s advantages and special features to a member of the team.
In addition to the CMA, your Urban to Suburban agent will check out the competition and find properties similar to yours and see how they’re priced and how long they’ve been on the market. If they’ve been on the market too long, a couple of factors come into play #1 Price and #2 Condition.
It’s also recommended to have a professional home inspection performed prior to listing the home for sale. This provides two purposes:
#1 It will provide the seller with a list of items to repair prior to the listing the home and demonstrates to your buyer that your home is well maintained.
#2 May eliminate any “surprise” repair issues, like foundation, termite damage, a faulty A/C, or a leaky roof. In many cases, when these issues come up during the buyer’s home inspection that may want these items repaired prior to closing.
In closing, “be flexible”, as your asking price shouldn’t be set in store. Of a period of time, if your house doesn’t sell, you may need to adjust your price. Your Urban to Suburban Realty team member will monitor showings, etc., and will keep you current on the market and make recommendations to make price corrections as needed.