your most excellent tool when selling your home.
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 $400,000 and $450,000. 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” to $305,000. The price will not entice a buyer but may make comparable homes more desirable. The house will most likely not sell quickly or at that price. • The “price it according to worth” approach sets the price right between the market value benchmarks at $295,000. t $295,000. Home shoppers will likely lump the home with like- priced homes, knowing they can buy anytime for $295,000. • 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 derailed.
THE COMPARATIVE MARKE TIVE MARKET ANALYSIS
When it comes to finding a buyer, pricing your home based on comparable, real-priced sales is crucial to making the sale. Comparative market analysis is imperative for strategic pricing. When you ask for one from a real estate professional, review the analysis, ask questions, and get explanations. If completed 55
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