Market-sensitive pricing can be the key to maximum market exposure and, ultimately, a satisfactory sale.
The existing pool of prospective buyers determines a property’s value, based on:
•Location, design, amenities and condition.
•Availability of comparable (competing) properties.
•Economic conditions that affect real property transactions.
Factors that have little or no influence on the market value of a house include:
•The price the seller originally paid for the property.
•The seller’s expected net proceeds.
•The amount spent on improvements.
The impact of accurate pricing:
•Properties priced within market range generate more showings and offers, and sell in a shorter period of time.
•Properties priced too high have a difficult time selling.
An impartial evaluation of market activity is the most effective way to estimate a property’s potential selling price. A Comparative Market Analysis considers similar properties that:
Have sold in the recent past
–This shows us what buyers in this market have actually paid for properties similar to yours.
Are currently on the market
–These are properties that will be competing with yours for the attention of available buyers.
Failed to sell
–Understanding why these properties did not sell can help avoid disappointment in the marketing of your property.
Dangers of Overpricing your Home
•Fewer buyers will be attracted and fewer offered received.
•The property attracts “lookers” and helps competing houses look better by comparison.
•If a property does sell above true market value, it may not appraise, and the buyers may not be able to secure a loan.
•The property may eventually sell below market value.
Advertisement
Great idea with the pyramid of viewers – really brings it home graphically
With all the instability in the market over the last couple of years, it is difficult to be precise on exactly what fair market is – so that will tend to skew the number of prospective buyers that will view a given property