PRICING EXAMPLE
A homeowner decides to place his home on the market and must decide on an asking price. By rough estimate, the home’s market value falls between $850,000 and $900,000. Many homes are on the market. These are some pricing considerations and approaches to finding that “right price”: • The “leave room for negotiation” approach. In this approach, the market value is “stretched,” say to $915,000. 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. • The “price it according to worth" approach. This approach sees the price set right between the market value benchmarks, at $895,000. Likely, home shoppers will lump the home with like-priced homes, knowing they can buy anytime for $895,000.
• The “underpricing generates interest” approach. Underpricing at $880,000 will motivate buyers and
perhaps create a bidding war. The goal of selling the home for more money is more easily realized as multiple offers in the Los Angeles market pushes buyers to offer "over the asking price".
THE COMPARATIVE MARKE TIVE 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
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