Qualified Home Buyers comparison shop.
Typically, they will define a price range and an area or areas that they are interested in and they go shopping, looking at pre-owned homes and New Homes.
After viewing all of the available homes that meet their criteria, a buyer will narrow their choices down to a short list of one or two homes.
In this day and age of Buyer Representation, the buyer’s representative will prepare a Competitive Market Analysis (CMA) to assist the buyer in the decision making process and determining an offering price.
At this point the buyer…having viewed all of the available homes (competition) will want to know what similar homes have actually SOLD for, average number of Days on Market, Price Per Square Foot and List Price to Sales Price ratio.
This research is used to help determine their offering price and ultimately their own limits to what they feel a home should sell for relative to it’s competition.
Armed with this market data and personal shopping experience, the buyer submits an offer.
Once the Buyer and Seller agree on a price and the buyer’s mortgage is being processed, the lender will send an appraiser out and they conduct the same research.
If the property appraises, everyone skips to closing and a happy ending.
When we prepare our Market Analysis for a seller, we include research on homes that a buyer interested in viewing the subject property may also consider and data the appraiser will also look at.
By reviewing this market data we can select a price that will position the property competitively in the market place and meet the sellers goals for timing and maximizing their property value.
Hope this bit of information and insight is helpful. If there is anything else we can do for you, give me a call: Ken Brand - 832-797-1779
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