Have you ever received a comparative market analysis (CMA) from a real estate agent and were completely insulted by the suggested dollar amount? Well, I must honestly tell you that a real estate agent does not randomly choose a dollar amount to give you. Moreover, I assure you that there is a method to the madness.
The harsh reality is that some neighborhoods or market areas appreciate faster than others. In fact, the value of your home today is NOT based on what you paid for upon purchase; it is not based on some improvements; the amount needed for you to relocate; the amount that you want; what your neighbors say; it is not what you owe; what you feel your home is worth; or the cost to rebuild the home.
The pricing strategy revealed: a real estate agent objectively studies the local market area, specifically within a 1-2 mile radius. The agent then considers the age of your property, the property features such as the number of bedrooms, the number of bathrooms, whether or not it has a finished basement, garage, etc.., the condition of the home, the home style: single-family, semi-detached, condo, etc… The agent then compares your home to homes that are exactly the same and have sold within the last 90 days. We also review the current competition (active properties) so that the pricing is competitive.
Finally, the agent looks at what did not recently sell (expireds) because a home that did not sell could be the result of it being overpriced, poor condition, marketing efforts, or because of location. In short, an agent does research to uncover the story of the neighborhood.
So for the most part, the suggested sales price is based on what buyers we recently willing to pay for a home that’s just like yours (SOLD).
So before you get upset with the real estate agent who recommends a sales price that you don’t agree with, ask them to share the market research story of Your legal subdivision.
And understand that the agent does not guess with your home is worth, instead we study the real estate market so that YOU can get the most amount of money and sell your home in the least amount of time.
And, as a result, we get to keep you as a lifetime happy customer and welcome the referral of your family and friends for generations to come – Everyone wins!
Until next time, Enjoy life’s journey!
Brenda Douglas Real Estate D.I.V.A. Distinguished. Indispensable. Valiant. Authoritative.
Keller Williams Preferred Properties http://www.realestatedivabrenda.com