Importance of Accurate Pricing

Setting an enticing, yet accurate listing price is critical to successfully selling your home. List it too high, the house sits on the market and gets “stale.” Price it too low, you lose potential profits from the sale.

Today’s buyers are more savvy than ever and have easy access to information. They know when a home is priced right.

So exactly what determines list price?

The basis of any list price should be a Comparative Market Analysis or CMA. The CMA is a report that takes a hard look at what buyers and sellers in the immediate vicinity have recently paid and received for homes similar to yours (also known as “comps”).

A good CMA analyzes three factors:

• Location – Evaluates home that are as close to yours in proximity as possible
• Recent sales – Studies how much homes have actually sold for in (ideally) the last 3 months.
• Like properties – Compares homes with features similar to yours, such as square footage, age, condition, amenities, number of beds/baths, condition, location, and lot size.

Equally important to consider are the factors that do NOT determine property value, and therefore, may not influence your list price. This includes

• how much money has been invested in the property over the years
• what was previously paid for the home
• how much the seller needs/wants to net from the proceeds of the sale

Pricing a home right from the very beginning is key to selling it quickly and at the best price. Analyzing accurate comps with an experienced Realtor will help you determine a list price that is both fair and attractive to buyers.

Are you thinking of selling your Katy, TX or Houston area home and wondering how it compares to others that have already sold? We provide a FREE Comparative Market Analysis! Click here or call us at (713) 515-3463!

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