The single most important factor to consider when selling a house is the home price tag: how much your house is actually worth. After 21 days, demand and interest wane. On the other hand, do not worry about pricing it too low because homes priced below market value often will receive multiple offers, which will then drive up the price to market. Pricing is all about supply and demand. It is part art and part science, and no two agents price property the same way.
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Pull Comparable Listings and Sales
- Look at every similar home that was or is listed in the same neighborhood over the past six months.
- The list should contain homes within a 1/4 mile to a 1/2 mile and no further, unless there are only a handful of comps in the general vicinity or the property is rural.
- Pay attention to neighborhood dividing lines and physical barriers such as major streets, freeways or railroads, and do not compare inventory from the "other side of the tracks." Where I live in the Land Park neighborhood of Sacramento, for example, identical homes across the street from each other can vary by $100,000. Perceptions and desirability have value.
- Compare similar square footage, within 10% up or down from the subject property, if possible.
- Similar ages. One neighborhood might consist of homes built in the 1950s next door to another ring of construction from the 1980s. Values between the two will differ. Compare apples to apples.
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- Pull history for expired and withdrawn listings to determine whether any were taken off the market and relisted. If so, add those days on the market to these listing time periods to arrive at an actual number of days on market.
- Compare original list price to final sales price to determine price reductions.
- Compare final sales price to actual sold price to determine ratios.
- Adjust pricing for lot size variances, configuration and amenities / upgrades.
Since these are pending sales, the sales prices are unknown until the transactions close, but that does not stop anybody from calling the listing agents and asking them to tell you. Some will. Some will not.
- Make note of the days on market, which may have a direct bearing on how long it will take before you see an offer.
- Examine the history of these listings to determine price reductions.
- These matter only as they compare to your listing, but bear in mind that sellers can ask whatever they want.
- To see what buyers will see, tour these homes. Make note of what you like and dislike, the general feeling you get upon entering these homes. If possible, recreate those feelings of reception in your own home.
- These homes are your competition. Ask yourself why a buyer would prefer your home over any of these and adjust your price accordingly.
Square Foot Cost Comparisons
- Remember that after you receive an offer, the lender of the buyer will order an appraisal, so you will want to compare homes of similar square footage.
- Appraisers do not like to deviate more 25% and prefer to stay within 10% of net square footage computations. If your home is 2000 sq. ft., comparable homes are those sized 1800 to 2200 sq. ft.
- Average square foot cost does not mean you can multiple your square footage by that number unless your home is average sized. The price per square foot rises as the size decreases and it decreases as the size increases, meaning larger homes have a smaller square foot cost and smaller homes have a larger square foot cost.
- Realtor.com is THE number 1 real estate site where buyers search for homes. Most likely, your first showing will be online and Realtor.com. That it why your Realtor.com marketing needs to be better than other listings; your competition. To make your home standout from other homes, your competition, we give ALL sellers a Realtor.com Showcase listing. With up to 25 pictures and a visual tour, we will give your home that extra online marketing boost and separate your home from the competition. SEE THE REALTOR.COM SHOWCASE EXAMPLE BELOW:
This web page is for educational purposes and not to solicit the listing of a broker. We are just letting you know what advanced marketing tools we use for ALL our Sellers to capture more buyers and get your home more attention on the market.
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