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.