decide on an asking price. By rough estimate, the home’s market value falls between $800,000 and $860,000. 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 $870,000. 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 $830,000. Likely, home shoppers will lump the home with like-priced homes, knowing they can buy anytime for $830,000. • The “underpricing generates interest” approach. Underpricing at $780,000 will motivate buyers and perhaps create a bidding war. But the goal of selling the home for more money is derailed.
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 (CMA) 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 a couple of weeks.
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