Suggested List Price
February 19, 2013
Pricing a Property has always been a challenge. Whether the real estate market is in boom times or down times, finding the correct pricing range depends on the past sales of similar properties, the current market activity and the seller's motivation.
When an agent is contacted by a potential seller, viewing the property and preparing a comparative market analysis (CMA) is usually the starting point for suggesting a listing price. The more familiar the agent is with the real estate properties in the market area, the more useful the CMA will be. In the past several years when there were so few sales, finding similar properties was often difficult and required the agent to stretch comparisons.
An agent who is working full time at selling residential real estate should also be able to provide information about the current real estate market. For instance: How many properties are currently for sale?; how many properties are bank-owned?; how many are short sales?; are sellers receiving multiple offers?; what is the typical time from listing to offer?
A seller's motivation can also play a part in choosing the listing price. Sellers who read that property values have risen 20% may have expectations of a particular price for their property. Often sellers will say that they do not have to sell, but would like to make a move. Sometimes sellers have heard that a similar property in the neighborhood sold at X when the data shows that it sold at X-1 or X+1. A CMA should answer this issue. It is usual for sellers to believe in the specialness of their property. It is important for agents to listen to the seller. On the other hand it is important for the seller to listen to the agent. Together they can arrive at a
price range that will result in the seller acheiving the goal of selling the property.
Pricing a Property has always been a challenge. Whether the real estate market is in boom times or down times, finding the correct pricing range depends on the past sales of similar properties, the current market activity and the seller's motivation.
When an agent is contacted by a potential seller, viewing the property and preparing a comparative market analysis (CMA) is usually the starting point for suggesting a listing price. The more familiar the agent is with the real estate properties in the market area, the more useful the CMA will be. In the past several years when there were so few sales, finding similar properties was often difficult and required the agent to stretch comparisons.
An agent who is working full time at selling residential real estate should also be able to provide information about the current real estate market. For instance: How many properties are currently for sale?; how many properties are bank-owned?; how many are short sales?; are sellers receiving multiple offers?; what is the typical time from listing to offer?
A seller's motivation can also play a part in choosing the listing price. Sellers who read that property values have risen 20% may have expectations of a particular price for their property. Often sellers will say that they do not have to sell, but would like to make a move. Sometimes sellers have heard that a similar property in the neighborhood sold at X when the data shows that it sold at X-1 or X+1. A CMA should answer this issue. It is usual for sellers to believe in the specialness of their property. It is important for agents to listen to the seller. On the other hand it is important for the seller to listen to the agent. Together they can arrive at a
price range that will result in the seller acheiving the goal of selling the property.
posted by shirley harry at 10:04 AM
0 Comments:
Post a Comment
<< Home