Comparable Home B: $349,000 Tim and Sue’s Home: $345,000 Comparable Home C: $345,000 Comparable Home D: $333,000 Comparable Home E: $329,000
Tim and Sue appear to have priced their home competitively for the market, presumably as they are in the middle of the range. Over the next month, the market changes.
Comparable Home A: Expired Tim and Sue’s Home: $345,000
Comparable Home B: $339,000 (Reduced Price) Comparable Home C: $335,000 (Reduced Price) Comparable Home D: Sold Comparable Home E: Pending Comparable Home F: $326,000 (New Listing) Comparable Home G: $325,000 (New Listing) Comparable Home H: $319,000 (New Listing)
Tim and Sue now have the highest priced home in the area in their price range. When a Buyer looks at the comparable home prices, it is now the worst value proposition in the marketplace. Most Sellers, like Tim and Sue, do not realize the market can shift so far so quickly. It is important to have a real estate professional in the market full time with their finger on the pulse of the economy and the housing market and it cannot be stressed enough how important it is for you to price your home right the first time. In this scenario, it is likely time to have the professional do an updated CMA. House D sold, and House E had a pending sale from the start. WHY SHOULD THESE STORIES MATTER TO YOU? Do you see how important it is to know the true value of your home? Moral of the story: Anyone can lose money in the real estate market. A Seller unfamiliar with the ever-changing market
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