• Optimum pricing strategy: Price at the low end of the Market Valuation. It is almost impossible to underprice a property in today's market of limited supply. • It is important to know the price range of the expected "ideal" buyer. Pricing the property within that range and not above or below should capture the ideal buyer. Understanding these strategies provides the foundation for effective negotiation later in the process. Your initial pricing approach directly influences the type of buyers you will attract and the negotiating dynamics that will unfold. Strategic pricing creates the foundation for all subsequent marketing efforts (Chapter 11) and establishes your initial negotiating position (Chapter 12). As you will observe, overpricing weakens both buyer interest and your negotiating leverage.
THE COMPARATIVE MARKE TIVE MARKET ANALYSIS (CMA) IS (CMA)
When it comes to finding the buyer, pricing your property correctly, based on comparable sold properties, is imperative to making the sale. The Comparative Market Analysis helps to price your property strategically. When you ask for one from a real estate professional, be sure to review their analysis, ask questions, and get explanations. If completed correctly, this comparison report not only gives you a good listing price, but also reduces the chance of your property being under-appraised. If your property is well-priced, you should be showing within the first few days on the market. Offers should come within weeks. A thorough CMA also provides the documentation and market knowledge that strengthen your position during negotiations and appraisal, giving you confidence in defending your price and recognizing favorable offers.
64
Powered by FlippingBook