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The Correct Price for Your Home

Your Realtor wants to sell your home as soon as possible, for the best price. He or she will use a Comparative Market Analysis to help you determine a fair price for your home. A comparative market analysis is based on information from similar properties in the area. The analysis uses information on properties that are currently for sale, properties that have already sold, and expired properties (ones which did not sell). The current sale price of similar homes will indicate what the competition is asking. Properties that have recently sold will indicate what buyers are willing to pay, just as properties which have expired may indicate what buyers are not willing to pay.

By carefully considering these three aspects your Realtor is able to determine a "fair market value"--the price which a buyer is willing to pay and the seller is willing to receive for the property.

In the real estate world, a large group of people are looking to buy homes at any given time. These are the seller's best prospects. This ready group of buyers is wasted, however, if your house is overpriced.

While shopping for a home, buyers will visit many similar homes in their price range and measure the features of each one against the price. They decide which house offers them the maximum value for the price. Buyers do not expect a home to be a "steal" or dramatically under-priced, but they do expect it to be a fair value. If your home is overpriced and they have been shopping around and comparing properties, they will probably refuse to look at your home. You and your Realtor may know that you would sell for ,000 less, but the buyers do not know this. As a result, your overpriced property may receive little attention.

Don't be fooled into thinking your house is worth more than someone is willing to pay for it, or that it's just a matter of waiting for the "right" buyer to show up. Surveys show that the longer a house is on the market before being sold, the greater the drop in price from the listing price when it does sell. The buying public eventually sets an accurate price. An overpriced house just sits on the market, waiting for a price adjustment before it will attract a buyer.

Consequently, your Realtor may advise you to reduce the asking price if buyers fail to surface after a certain period of time on the market. If you are serious about selling your home, you should take your Realtor's advice. If the first price reduction doesn't generate a buyer, another reduction may be necessary. The monetary value of a house is only what someone is willing to pay for it, but if the market analysis is done correctly, you will get the maximum amount--and a timely sale.


About the Author: Sean Remington, CRS, ABR, is a local Albuquerque Realtor with RE/MAX Masters. He can be contacted at (505) 883-8979 or online at http://www.NMHomesOnline.com




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