When selling your home, it is very important to price your home right. The market determines what the price of your home is. Meredith will run a Comparative Market Analysis (CMA) to assess what we think your home should be priced at. A Comparative Market Analysis is designed to show a property’s price based on other like properties that have recently sold. Many times a CMA will include homes that are currently on the market to show what the existing competition is. CMA’s are designed to give an overview of facts such as approximate square footage, number of bedrooms and baths, room sizes, location and amenities such as fireplaces and pools. Typically this information is derived from properties that have sold within approximately the past six months. Meredith will provide a suggested list price based on a combination of facts and perception; however, Meredith is not an appraiser and the appraiser will ultimately determine the value of your home. It is important to get as close to the appraiser’s price as possible.
There will be situations where the seller wants to price the home higher than what the market will allow, with this risk comes the hazards of overpricing. This is why it is imperative that we don’t use our emotions in this process. Meredith understands that selling your home is a very emotional process, unfortunately when pricing the home, it is a must that you be objective and listen to Meredith’s advice and suggestions. It is her objective to sell your home quickly and at the best possible price. This quick overview might help you understand how a few percentages can affect your home’s ability to sell:
- Fair Market Value ———- > Property Sells
- 4-7% Overpriced————> More Showings. Buyers purchase a competitive home.
- 7-10% Overpriced———–> Few or No Showings. Lowball offers. Poor feedback as Buyers compare to superior comps
- More than 10% Overpriced—-> No Showings. No offers. Qualified buyers never see the home because it is out of their price point.
This illustration demonstrates what happens when the property is overpriced and the time that is lost in the price reductions as well as the consequences.