How to Price Your Home
Question: How is a home's value determined?
Answer: You have several ways to determine the value of a home.
An appraisal is a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage, and construction quality. This service varies in cost depending on the price of the home. On average, an appraisal costs about $300 for a $250,000 house. This is usually paid for by the buyer as their mortgage company will require one to make a loan. However if you want a really accurate one to help you set the price of your home, happy to arrange an appraisal for you.
A comparative market analysis is an informal estimate of market value performed by a real estate agent based on similar sales and property attributes. I offer free analyses in the hopes of winning your business.
Setting the Price
A key part of the marketing plan is setting the list price. If a home is priced too low, it may cost you money. If a home is priced too high, potential buyers may be scared away. To determine the best asking price review the cost of recently sold homes, evaluate the competition and study marketplace trends. Coldwell Banker agents are trained to use this information to help you reach the right asking price. It is also helpful to discuss other terms and conditions, such as timing and items that can be included with the sale of the home. Both of these can make your home more attractive to potential buyers.
An Explanation of a Comparative Market Analysis
The highest price estimated in terms of money which the property will bring when the property is exposed for sale in the open market by a willing seller, allowing time to find a willing buyer, neither buyer nor seller acting under compulsion, both having full knowledge of all the uses and purposes to which the property is adapted and for which is capable of being used.
This market value definition presupposes perfect knowledge on the part of the buyer and seller. Since this perfect world rarely exists, the cma estimate of price is generally indicated as a range. In evaluating your property I use many of the tools that a professional appraiser utilizes: comparable sales, competitive listings in escrow, square footage, location, amenities, and the general condition of the property.
When I compile a market analysis the enclosed data is researched from the reliable information currently available from the multiple listing (MLS). It does not reflect every property of comparable value for sale now, but does represent a good cross section of the competitive real estate inventory and recent sales. Please note that while none of the properties are exactly like yours, they do provide a good reference source in a comparative market analysis.
The estimated value range I give to your property does not mean that the sale of the property could not occur at a higher price. The price you ultimately receive, of course, will depend on your motivation, the motivation of the buyer, and market conditions at the time offers are received.
Once we have tested the market at this price, we will make periodic reviews to ensure we remain competitive.
Setting the Commission Rate To List Your Home For
When a buyer comes to a Realtors office and they want to see property in your sub division- the agent we will look it up on the MLS. If for example in your sub division there are 30 houses for sale all offering different commission splits to the agent who brings a buyer, then a buyers agent is going to show the houses that have the most commission split. Hopefully they would also show homes that fit your criteria that have a lower commission split (or they are not very honest !) but if they have say 10 out of the 30 homes that fit your criteria and 5 of them have a better split they obviously will show those first.
Find Out Steps and Strategies for Successful Selling
Now it's time to get your home ready for the spotlight. Start with a good cleaning, then eliminate any clutter, add a fresh coat of paint and tidy up the yard. Talk to me about other tips that can help boost a home's curb appeal and impress potential buyers once they're in the door.
Showing Your Home I cannot sell your home if I cannot show it, please bear this in mind when you give me your showing instructions. I use a electronic lockbox this way there is always a key available to the agent that wants to show your home. In most instances I use an electronic lockbox which has to be opened with a special electronic key that registers which agent has been in the home, this is accessible to me through a website.