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As your Realtor®, I will prepare a comparative market analysis for your home based on the most current market information. Together, we will establish the proper list price for your home.
The following pages provide a comprehensive analysis of properties similar to yours that are currently for
sale, or were recently for sale, in your area.
By carefully reviewing the locations and features of these "comparables" you'll be better able to approximate
your property's ultimate selling price, which can be defined as the highest price that the market will
recognize and pay. Approximating your property's selling price will then help you to strategically determine
a listing price that enables you to successfully sell your property for its top market value.
This analysis is divided into four categories:
1. Comparable properties that are currently for sale.
2. Comparable properties that have recently sold.
3. Comparable properties with sales pending.
4. Comparable properties that failed to sell.
Looking at the properties currently for sale will enable you to assess the alternatives that a serious buyer
has to choose from. It will also help to insure that you do not underprice your property.
Looking at properties that have recently sold will enable you to see what home sellers in your area have
actually received over the last few months. It is also important to note that these selling prices are used by
lending institutions to determine how much they will lend buyers for a home like yours.
Looking at properties that failed to sell will help you to avoid listing your property at a price that does not
attract qualified, motivated buyers. As you will see in the pages ahead, overpricing a property often results
in sellers actually getting less money than they would if they had priced it realistically in the first place.
The bottom line is that studying what has recently worked — and what hasn't — in your area will help you to
develop a clear picture of the potential market for your property. This will in turn enable you to strategically
price, position and stage your property such that you sell it for top dollar in a reasonable time frame, with
the least inconvenience for you.
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There are many factors to consider when trying to determine your home's market value.
Market-sensitive pricing can be the key to maximum exposure and, ultimately a satisfactory sale.
Your home's value is based on:
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Location, design, amenities, age, size and condition
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Availability of comparable (competing) properties vs. buyer demand
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Prices of recently sold properties in your area
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Current interest rates
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Overall economic conditions in your area & seasonal demand
The impact of accurate pricing:
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Properties priced within market range generate more showings & offers, and sell in a shorter period
of time
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Properties priced too high have a difficult time selling
The consequences of overpricing:
The strategy of overpricing your property — knowing that you can reduce the price later — might make
sense at first glance. However, it seldom works. In fact, sellers who overprice their properties, even just
10% above market value, often end up getting less than they would if they had priced it properly from the start.
Here is why:
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A high price on your property makes other comparable properties more attractive, so you actually
help to sell your competition.
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Fewer buyers will respond to ads, fewer REALTORS® will show your property to their buyer clients, and
you'll get fewer serious offers.
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Inflated prices often lead to mortgage rejections and critical lost time waiting for finance approvals
that don't go through.
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Reducing the price after buyers have begun to perceive your home as a "stale" listing will not
generate nearly as much interest as if you�d priced it properly from the start.
This is why rightly pricing your property to coincide with its window of maximum market exposure and
buyer interest is so important.
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