You Think That You Want to Sell Your Property
October 3, 2012
You have heard that the local real estate market has become really active. You have heard that buyers are competing for properties and that homes are selling really quickly. You have been waiting to move and think it is time to call a real estate agent to find out what your property is worth on the current market. The agent will prepare a Comparative Market Analysis (CMA) using current active listings, properties in escrow (pending) and those that have sold in the past three months. (Appraisers do not generally consider sales older than three months.)
The active listings will tell you what your competition is. The pendings will tell you what buyers chose. These pendings will tell you the listing price and how many days the properties were on the market. The closed sales will tell you the actual selling price of the properties that sold. In today's market, the agent should also indicate whether or not the stated purchase price includes buyer's costs that the seller paid.
When pricing your property it is important to remember that listing prices are what sellers would like and the actual sold price is what buyers were willing to pay. Sellers can ask any price they like, but what indicates the value of real estate is the price at which a property actually sold. It is this price that should be the basis for your listing price is you really would like to sell within a reasonable amount of time.
Homes that are listed at prices under the market are often short sales. The seller really has no "skin-in-the-game" as all proceeds in short sales go to the mortgage holder. These under listed properties are most frequently the properties with multiple offers and they often sell for more than the list price.
Pricing a property to sell is not an exact science. It is comparing in what ways your home is similar to other homes and then making a judgment as to a price that will attract buyers.
You have heard that the local real estate market has become really active. You have heard that buyers are competing for properties and that homes are selling really quickly. You have been waiting to move and think it is time to call a real estate agent to find out what your property is worth on the current market. The agent will prepare a Comparative Market Analysis (CMA) using current active listings, properties in escrow (pending) and those that have sold in the past three months. (Appraisers do not generally consider sales older than three months.)
The active listings will tell you what your competition is. The pendings will tell you what buyers chose. These pendings will tell you the listing price and how many days the properties were on the market. The closed sales will tell you the actual selling price of the properties that sold. In today's market, the agent should also indicate whether or not the stated purchase price includes buyer's costs that the seller paid.
When pricing your property it is important to remember that listing prices are what sellers would like and the actual sold price is what buyers were willing to pay. Sellers can ask any price they like, but what indicates the value of real estate is the price at which a property actually sold. It is this price that should be the basis for your listing price is you really would like to sell within a reasonable amount of time.
Homes that are listed at prices under the market are often short sales. The seller really has no "skin-in-the-game" as all proceeds in short sales go to the mortgage holder. These under listed properties are most frequently the properties with multiple offers and they often sell for more than the list price.
Pricing a property to sell is not an exact science. It is comparing in what ways your home is similar to other homes and then making a judgment as to a price that will attract buyers.
posted by shirley harry at 9:16 AM
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