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Factors and Strategies for Pricing your Property

A member of the real estate team will show you a Comparative Market Analysis, commonly called the CMA, which will present the similar homes in a seller-friendly format that should be able to help you figure out the right price for your property. Although the CMA is very effect, it is not the only item.

Many other factors determine the price of your property. The factors include: the motivation for selling, the condition of the property to be sold, the improvements that have been made to the property, the items that will be included with the sale, and other factors which will be brought up during the presentation.

One of the most vital things to remember is that the price that is agreed after the information provided to you has been reviewed, and is almost always a bit higher than the prices the CMA is showing for your area. A common mistake made by most sellers is pricing the property out of the market range. Later on, they question why the buyers will not schedule meetings with them. The reason for this is because both the buyer and the realtor will recognize that the property is overpriced, and will not include the property in their tour of homes. Buyers are much more educated in the modern day than they were years ago. The buyers can use the internet and gain more knowledge buy looking up the information on the stats for the area, the original purchase price of a home, and even the appreciation rates. When all the multiplication comes out to be correct, a buyer can get a good estimate on what the price of the property is really worth. An important thing to remember is that a buyer is rarely by themselves. Usually they will have a professional with them such as a Mortgage Broker, Realtor, CPA, Financial Advisor, or another professional. They will all be giving the right advice on what is a good offer for a specific property.
Many sellers assume that the appreciation rates over the recent years will continue the recent trend. But, that assumption is incorrect. Many of the investors would hold out and wait for extremely high prices, and most of them lost everything they had invested, and also the profit that they had gained. The real estate prices will continue to rise, but not at the same trend as the recent years. That is one of the main reasons the sellers higher their price, and use that as an excuse as to why their price is so high. They will usually put a high price and test out the market and hope to catch a buyer with a fat wallet. Or, they will say that they are in no hurry to sell the home, and will wait until they get the offer they want.
Most of these strategies usually fail, and both the seller and Realtor will usually regret it. The seller will tend to miss out on a chance to get a good price for their property, and then will have to wait another round and hope a buyer will come with a good offer. Usually, the first few weeks will be the best chance to get an adequate buyer. The reason for that is because the listing will be new in the MLS, and will attract the Realtors. If you over price your property, the Realtor will recognize it and be sure not to include it for their buyer. The other situation is when a property has been on the MLS for a long period of time. The Realtor will know that there is obviously something wrong with the property, which is why it has been on the MLS for so long. They know not that if the house was alright, it would have been sold by now. Both the buyer and realtor have the same assumption, and are not interested in the house.

About the Author: Joe Lane -

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