PRICING YOUR PROPERTY
Before listing your property, you must find the value of your property, and in the current real estate climate that takes research and knowledge of the area. Not only do prices fluctuate by state, county and city, but also by neighborhood.
It is important to distinguish between Market Value and Price. A price listed for a specific property may or may not represent that property's market value. Licensed appraisers determine the market value of a property; most often to assist lenders in providing loans. Real estate professionals develop a realistic price at which your home will likely sell, given the market conditions. The correct price of the home is the amount that a willing buyer would pay a willing seller for property after reasonable exposure to the marketplace. That could be higher or lower than the market value of a property. Real estate brokers will use a Comparative Market Analysis (CMA) to help determine the correct price of your property.
The definition of price used in a CMA depends upon a set of assumptions about the market. These assumptions become the basis for selecting comparable data for use in the analysis. The value is stated as an opinion that presumes the sale of a property as of a certain date under certain conditions. In the current market conditions, that number can change monthly so it is important to look at the market conditions on a regular basis.
Some of the conditions involve the market and area and others involve the property itself. For example, how many homes are for sale with the same general size, age and condition of your property in the same selling area? How many of those properties sold in the last 3-6 months? Did they sell fast or slow and did they sell for close to the listed price? Out of those properties, how many are truly comparable to your property in style and amenities? Those properties are your true competition. When looking at comparable properties, there should be more weight placed on the sold properties because that reflects the price that a buyer is willing to pay. The listed properties may have been on the market a long time or not be realistic in their pricing. It is important to look at the listed pricing to see where best to position your property on the market, rather than for an indication of true price.
Oregon Bay Properties, LLC does not give legal or financial advice. Information provided is not a warranty of any kind and all information should be verified.