Pricing It Right

Setting a price is one of the most important elements of selling your home. If the property is overpriced, it has a tendency to sell other homes in the area, all the while keeping your property on the market longer and losing the initial interest of buyers. I have seen this happen time and time again. When we sit down to set a price, I will show you a comprehensive Market Analysis.

The Comparative Market Analysis

A Market Analysis is an essential tool to determine the value of property. Location, condition of the property, recent sales for comparable homes, quantity and quality of properties both currently on the market and sold, and even listings that have expired, are all key factors in determining a good price to get your home sold quickly, with the least amount of hassle.

Similar homes For Sale now show what we are competing against. Similar homes Sold recently tell what buyers are willing to pay for a home like yours in this area at this time. The expired listings represent the problems of over pricing. The desired result is to find a price that will attract a qualified buyer in a reasonable amount of time.

Determining the Price

Once we have determined the value of your home, the next step is to ascertain an asking price. The asking price should not be too much above the actual value of your home. Here are some things you should keep in mind:

  • Realistic pricing will achieve maximum price in a reasonable time.
  • An analysis of the market in your area featuring homes comparable to yours actually determines the value.
  • The amount of money you spend on improvements almost never shows up as added value.
  • Homes that remain on the market for a long period of time almost never get shown. Buyers are interested in something that is new and if a property sits on the market for a long time, they wonder what is wrong with the house that kept it from selling. Salespeople also sometimes forget that a property is there because they are constantly exposed to new listings. So if it does sell after a long time it will usually be for a much lower price.
  • If the property is priced right from the start, it will usually give the biggest profit.

There is one other item that I am forced to mention, it is called "buying the listing". It is a situation in which an agent will overstate the value the home, and, once the Listing Agreement has been signed, proceed to request dropping the price. The idea behind this is to get you excited about a higher price and ignore the realistic market conditions. Needless to say, this is not something I practice.

Charissa Pemper, Boston REALTOR®

Charissa Pemper
Lic. MA Real Estate Broker, REALTOR®
Charissa@HomesInBoston.com