LOWER NET PROCEEDS: Most of the time an overpriced property will eventually end up selling for less than if it had been properly priced to begin with, not to mention the extra carrying costs.
CMA- what is your house worth?
A Comparative Market Analysis, or commonly known as a CMA, is report generated from recent real estate activity in your neighbourhood. Your home is compared with similar homes in your neighbourhood in three levels.
The first is properties that are currently for sale. These are properties you want to consider carefully because not only are they "actively" your competition, but, they give you a good idea of what other sellers in your neighbourhood are anticipating to sell their house for.
The next level is properties that are "pending" close of sale. This means that the property is sold and pending closing. Although these give a good indication of what type of properties are moving in the market, with regard to price it doesn’t determine what it actually sold for because price is usually not released until the close of escrow.
The third level is properties that have already "sold," meaning successfully completed sales. This is probably the most important to consider of all three because it plainly lets you know what buyers are paying for homes like yours.
4 features that determine highest price
· Location – The value of a house not only varies on the desirability of a city, but also what neighbourhood it is in, and what amenities are located nearby. (shopping, transportation, school, quality of waterfront, views, privacy etc.).
· Features – Upgrades and special features of a house add value as well. Things like a pool, spa, bay window, view, bedrooms, square footage, remodelling, etc. all affect the highest possible price.
· Condition – Overall condition has a great impact of what the "perceived" value is. The better maintained a house appears to be, the more confident a Buyer will feel offering full value because it gives the impression that you have taken very good care of not only things that are obvious, but also things that are not.
· Market timing – Is it a Buyer’s market or Seller’s market? Knowing the current market conditions will impact what the highest possible price for your house can be. Also, what cycle is the economy in? Prosperity or recession?
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The first question you should ask yourself is "Why am I selling?"
Are you selling because you want a bigger home, or smaller home? Are you being transferred by your job, looking for a better neighbourhood or community? Perhaps you’ve come into some financial trouble and have to sell right away. Or, you want to get your equity out of your house now and buy something else.
Determining your motivation for selling will also help determine the amount of time you have to accomplish that. And, when putting your house on the market, timing is everything. One important factor to keep in mind is that no matter what your situation, you want to price your house right.