SELLERS SERIES: To sell your house has to prove its value to three people:
1. The buyers agent whose job it is to scout for the best homes in the buyer's price range
2. The buyer who selects from these homes and
3. The lender, who decides who actually decides if the home is worth the price
Your real estate professional will take all this into consideration when helping you set the list price. To do this, your agent will prepare what is commonly called a CMA (Comparative Market Analysis). A CMA allows your agent to analyze your most up-to-date local market conditions by factoring in the following:
Factors houses that recently sold, houses that have recently been placed on the market, failed sales (expired listings) or houses that are under contract. A closer look ...
ACTIVE LISTINGS: These are listings that are on the market. Some sellers make the mistake of looking strictly at active listings for setting their list price. The problem with this strategy is that the only thing we know about active listings is that they have not sold. So that while knowing what our competition is part of the puzzle, its not the only piece.
WITHDRAWN and EXPIRED LISTINGS: These are much like active listings. These homes haven't sold either after being on the market for some time and in some cases even going through several price reductions. Usually these homes were overpriced or had major issues that deterred buyers. By analyzing the listings of withdrawn or expired listings, your agent can determine where those pricing strategies went wrong. That information can help you see the power of getting the price right at the outset.
SOLD AND PENDING LISTINGS: Unlike active expired and withdrawn listings, these stats can show what prices are attracting buyers and getting offers. Your agents CMA will help you to determine where the market has been, where its going and where it's not. To be a successful seller you need to know where to set your price.
Take a look at the video below for a further explanation. (length 2:19)
- How Buyers Search For Homes
- On the Market vs. In the Market
- Showings and Offers
- Proving House Value
- Market Value