We are seeing a lot of posts around this very subject lately. Seems like a lot of folks are not looking carefully at the data to support their pricing desires. The market is what it is when you decide to sell. If you want a higher price, then improve condition to the point the house will command it.
~ I'm Sorry Mr. & Mrs. Seller, Your Home is Only Worth... ~
This post was inspired by a newer agent in my office.
First of all Mr. & Mrs. Seller, a market analysis is not an appraisal. It is a picture of the current market conditions based on sold properties in a designated area. Sold properties are used in an analysis because homes do not necessarily sell for their list price. The value of a home is what it actually sells for, notfor what it lists. I will do a CMA (comparable market analysis), before listing your home to find the proper pricing for it. (We don't just make up a number off the top of our heads, at least I don't.) And a home is not worth what you, Mr. & Mrs. Seller, need to pay off your bills.
My search criteria for a CMA, preferably, is in the same subdivision, same style of home, sold within the last 6 months (or if there are too many properties to use, then I narrow this down to 4 months), within 100 sq ft smaller or larger than your home and approximately the same age. This is my starting point. I will then tweak my criteria from there. Yes, I do use bank owned and short sales in the mix, but I will adjust for pricing since they usually sell for up to 30% lower than a straight sale. In my report for you, I will also include active listings since they will be your competition. And I will also include a list all of the homes currently under contract/pending, since these will most likely be some of the comparisons that the appraiser will be using to aprraise your home. So you see, what you owe on your bills does not factor into the pricing of your home. I'm sure this makes absolute sense to you. You are intelligent folks, so I am certain you will not mix the two.
The way I come up with a price range to sell your home, I use a CMA program. Active Reality Solutions is the program I use. It was written by a local REALTOR here in Denver. It allows me to make adjustments to the comparable homes for condition, upgrades, views, age, sq ft, garage spaces and more. I am also able to 'correct' the incorrect information that the listing agent may have missed or incorrectly entered into the MLS system. I make the adjustments to the comparable homes by assigning a dollar value for the differences, to make those homes more similar to your home with the same options and upgrades.
Now that I have explained this to you, you can see why your home's value is only between $245,000 and $252,000, not $280,000. If you were to list your home at $280,000, you will only be helping the competition sell their home first. If you were a buyer and I showed you this information, would you buy your home, or would you buy one of these other homes for $30,000 less? I'm sorry Mr. & Mrs. Seller, your home is only worth....
If you live in the Denver metro area and need a professional REALTOR to properly price your home to sell, I am available to help you. I am in the busness to sell your home, not just list it.
Keller Williams Real Estate, LLC
Broker Associate, CNE, CRS, GRI, SFR
Servicing buyers and sellers in the Denver metro area since 1993
Three easy ways to contact me:
email me directly Dawn@downhomeindenver.com
visit my website to search for homes or find the value of what your home is currently worth visit: www.DownHomeInDenver.com
call or text me directly on my cell: 303-332-8025
The choice is yours. Let my expertise work for you! Servicing the Denver Metro area/ Aurora, Centennial, Denver, Englewood, Greenwood Village, Littleton, Lonetree and Parker