A comparative Market Analysis (CMA) is essential to determine the value of residential property.  Location and characteristics of the property are the key elements in determining value, therefore the basis for valuation is similar properties in your area.  The market analysis takes into account the amount received from recent sales of comparable properties and the quantity and quality of comparable properties currently on the market.  The desired end result is to find a price that will attract a willing and able buyer in a reasonable time.

Once the value of your home has been determined, you can decide on an offering price that will achieve your goals.  Generally, the price should not exceed the value by more than 5% or potential buyers may not even make offers.  Naturally, if you want to sell quickly your asking price should be very near the value.

The following area a few things to keep in mind about pricing:

• Realistic pricing will achieve maximum price in a reasonable time.
• Your cost or profit desire is irrelevant; the market determines the price.
• The cost of improvements are almost always more than the added value.
• Houses that remain on the market for a long time do not get shown.
• A house that is priced right from the beginning achieves the highest proceeds.

Determining the best asking price for a home can be one of the most challenging aspects of selling a home.  It is also one of the most important!  If your home is listed at a price that is above market value, you will miss out on prospective buyers who would otherwise be prime candidates to purchase your home.  If you list at a price that is below market value, you'll ultimately sell for a price that is not the optimum value for your home. 

Another critical factor to keep in mind when pricing your home is timing.  A property attracts the most attention, excitement and interest from the real estate community and potential buyers when it is first listed on the market.  Improper pricing at the initial listing misses out on this peak interest period and may result in your property languishing on the market.  Eventually leading to a below market value sale price or, even worse, no sale at all.  Therefore, your home has the highest chances for a fruitful sale when it is new on the market and the price is reasonably established.

The Nevius Team can give you up-to-date information on what is happening in the marketplace and the price, financing, terms, and condition of competing properties.  These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

General rules....  Let's review some important considerations.  There are certain factors that are beyond our control and certain factors that are within our control.  Those factors outside of our control are:  the location of the property, the finished square feet and types of rooms and the amenities that are in place.  Those factors we can control are:  the appearance of the property inside and out, how aggressively we market the property and the price, including terms.  It is critical for us to accept those factors that are beyond our control and to focus on pricing and preparation.

Local market observations... Our market is currently steady.  Properties are not moving as fast as they did just 6 months ago but they are not languishing for months either.  Given the current interest rate situation we should continue to experience relatively low mortgage rates and thus the market should remain steady for a while.

If you have any questions regarding any information in this, please contact The Nevius Team at 800-930-5442.