Steve Diadoo reporting from Lakeville, MN
When a Realtor works to determine a price to list a home, there are many factors that go into that deciding factor. First your realtor must look at homes in your neighborhood that are comparable to your home, and can be found in three categories on the MLS. These three categories are current homes for sale, recently sold homes and homes that expired or cancelled because they did not sell. Once this information is researched and put together for a seller, they now have a COMPARATIVE MARKET ANALYSIS.
When a realtor tells you they will be using homes that are comparable to your home; they are referring to finished square footage, number of bedrooms, bathrooms, garage spaces and amenities that your home and others offer. This differences will typically show on the COMPARATIVE MARKET ANALYSIS as a “+” or “-“ and may even show an estimated dollar figure of the increase or decrease related to this amenity.
Current Homes for Sale:
This section of your COMPARATIVE MARKET ANALYSIS will show what other home sellers are hoping to get for their home. As a seller, you will want to look at each of these homes carefully to determine the similarities and differences to decide if you should price your home with the higher or lower priced listed houses. Setting your sale price will determine your competitiveness in the market.
Houses that Did Not Sell:
Houses that did not sell can ultimately show you the ceiling of what buyers in the market are willing to pay for a house with amenities and features similar to your criteria. Pricing your home in this price range may not be in your favor if you are truly looking to sell your home and in a short period of time.
Houses that Sold:
BINGO! This statement says it all and shows you exactly not only what a buyer is willing to pay to purchase a house in your neighborhood with similar amenities, but also that the house has a chance to appraise for the offered purchase price. Pricing your house above the range determined successful is entirely up to the seller, but one must be prepared to lower the price accordingly to achieve the successful sale.
More Factors to a COMPARATIVE MARKET ANALYSIS:
When your Realtor is researching the information to help determine that correct price to list your home at, there are other factors that come into play. Here are a few to consider when looking at your potential Realtors COMPARATIVE MARKET ANALYSIS:
- Price per Square foot
- Market Conditions
- Your Enthusiasm to Sell or Not to Sell
All in all, the best thing you can do is trust your Realtor. Your Realtor has done lots of research to determine the best sale price for your house. After all, isn’t that why you hired your Realtor? For their knowledge, expertise and marketing to receive the highest and best offer to get your house “SOLD”.