The “leave room for negotiation” approach. In this approach, the market value is “stretched,” say to $305,000. The price will not entice a buyer but may make comparable homes more desirable. The home will most likely not sell quickly or at that price. Also, pricing a home at just over a $100,000 milestone is not wise. Buyers looking for a home between $250,000 and $300,000 will not find your home on a search even though your home may be a good fit. The “underpricing generates interest” approach. Underpricing at $280,000 will motivate buyers and perhaps create a bidding war. But the goal of selling the home for more money is diminished. The “price it according to “worth” approach. This approach sees the price set right between the market value benchmarks, at $295,000. Likely, home shoppers will lump the home with like- priced homes, knowing they can buy anytime for $295,000. • In this example, the ideal asking price would be somewhere between $295,000 and $299,999 staying under the $300,000 milestone but leaving a little room for negotiation. THE COMPARATIVE MARKET ANALYSIS When it comes to finding a buyer, pricing your home based off of comparable real-priced sales is crucial to making the sale. The Comparative Market Analysis is imperative to pricing strategically. When you ask for one from a real estate professional, be sure to review the analysis, ask questions and get explanations. If completed correctly, this comparison report not only gives you a great listing price but also reduces the chance of your home being under-appraised. If you have a well-priced home, you should be showing within the first few days on the market. Offers should come within weeks. Don't interpret online valuations like Zillow's Zestimate as an accurate valuation tool like a CMA received from a real estate professional. A Zestimate extrapolates valuations without taking into consideration any unique aspect of your property. If your home is in a gated community where the home values are ranging 53
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