Proper List Pricing for Home Sellers
Get the information you as a home seller need to make educated, informed decisions about the home selling process in today's real estate market.
A proper list price reflecting current and realistic market conditions is critical to take your Fort Lauderdale Home from For Sale to Sold, without leaving money on the table.
We don’t want you to under–price. We definitely don't want you to substancially over-price; it’s deadly to over–price the market. Buyers discount value by DOM or Days On Market. Almost every buyer I have worked with has asked the question, "How long has it been on the market?" The longer a home stays on the market, the greater a buyer will discount their offer from asking price.
How do I calculate a listing price that reflects your home’s competitive position?
It’s a combination of analytics and experience. By being very detailed in my research and extremely thorough and precise with my data analysis, applying adjustments for improvements, lot size, location, mechanicals' conditions, deficiencies based on in-depth knowledge of values relative, I create an appraisal style assessment to share with you.
Together, we review the assessment and note how your property compares to the current competition in your neighborhood. To further enhance the value and salability of your property, we will consider worthwhile corrections and budget-conscious improvements to improve that position and your bottom line.
Here's the details:
Analysis of Sold Properties
First I select comparable properties out of those sold recently and, in your neighborhood, similar neighborhoods. These “comparables” or “comps” are selected based on similarity in features, location and characteristics with your home. They must have been sold within the last year, preferably in the last six months, to be as accurate as possible.
I then do a go through a detailed “adjustment” process to adjust sold prices for any differences with your property's features and benefits, improvements, location and functionality. This is a similar process to that which appraisers do. If a home has one more bedroom than yours, I would adjust that property’s sold price downward for the value of one bedroom to make the comparison 'apples to apples.' Then I use those sold prices to arrive at a preliminary listing price for your home. I say “preliminary” because there is another CMA step.
Analysis of Current Listings
Now I review the properties currently listed; those that would be your competition. I go through the same adjustment process to come up with another data driven price suggestion for your home. This second analysis gives an indication of the immediate market. Also reviewed for consideration are the market trends and market timing.
Why two separate processes? Let’s say the analysis of previously and recently sold similar homes indicates a listing price of $635,000. However, those sales were between three month and six months old. The current market shows that similar homes in the neighborhood are listed at $688,000 or thereabouts. Knowing the market is strengthening justifies raising the listing price of your home to a place where it’s still competitive, but more lucrative for you.
Once all the results are compiled, we evaluate the data together to determine a listing price that will get it sold!