Having a real estate professional perform a Comparative Market Analysis (CMA) is an important tool in finding a fair market value for your home. This is accomplished by comparing your property with similar properties which have recently sold and in some cases with similar properties currently on the market. After conferring with your Yellow Dog agent regarding the market conditions and comparable nearby sales and listings, the home seller will set the listing or “asking” price for the house.
A good rule of thumb is: “A house priced more than 3-5% over market value discourages offers.” Buyers who can afford the price can get “more house” for their money elsewhere. Buyers who cannot afford the price simply won’t look.
But what else is important in pricing your property? Its looking at your house with logic versus emotion. Many times you buy your home and during the time you own it, you invest money into improvements such as upgraded landscaping, fence, new countertops, interior paint, new deck and sprinkler system, just to name a few. Unfortunately pricing your property by adding these improvements onto the cost you paid is done on emotion. Yes, you put love and care into your property and want to receive as much cash equity from the sale as you think the property is worth. However, realize the benefits and pleasures your family received from the improvements.
Look at pricing in a logical way. This can be done by understanding you may not recover full value on all the improvements you made. Check out the properties on the market in your area that you will be competing with, and their price. Take into consideration the condition of your home. Then look at how long other comparable properties have been on the market. Now you and your agent can more realistically determine the fair market value of your home, and price it to sell on your timeline.