PRICING YOUR HOME
PRICING A HOME IS A COMBINATION OF SCIENCE AND SKILL
Strategically pricing a home to get in front of the right buyers for the best possible price the market will bare without leaving money on the table is takes in several factors:
TIME OF YEAR
During normal market conditions, the Spring is usually the hottest market to sell a home because it’s warming up, school is almost out, and families prefer to move in the summer before the new school year. Then the second-best season is the Fall, when Summer vacations are over, families are back in a routine, and folks have the time to put into the home buying journey. Summer can also be a pretty good time to market a home in our area. There may be a different type of buyer in the Summer months, those singles or families without the concern for school years.
The Winter months usually favor the Buyers because those that are selling during the holidays are generally highly motivated by life events to sell, therefore more willing to negotiate.
When inventory levels are low and "Days on Market" are fast, anytime of the year can bring the same result.
It’s simple supply and demand. If you have more buyers than homes for sale, then houses may get multiple offers and higher sales prices than if there are lots of homes for sale and fewer buyers.
Even if inventory is low in the area, some neighborhoods may have a lot of competition to sell, making it harder for you to get the price you want. The more desirable the neighborhood and the lower the inventory is then home values can rise.
READY TO PUT YOUR HOUSE ON THE MARKET?
The first thing to do is to consult with an expert like us. As your agent we will work hard to ensure your house is priced competitively and well-staged. Why? Because while there are always three factors to getting a home sold—location, price, and condition—only two are under your control: price and condition. Of the two, which is more significant? Price. Price can correct a home in bad condition, but condition never overcomes a home priced too high for the market.
I will provide you with a CMA (Comparative Market Analysis). This report can be the most important tool in determining the listing price. Review the CMA carefully so you understand the current market. Studying the past sales will not only help you understand the pricing strategy but give you a realistic expectation as to how much your home might appraise for when you go under contract. Remember, the listing price of a similar home is your competition, not a comparable for value. Active listings have not sold.
The CMA reports usually contain:
Active listings for your area with a similar home; age of construction, number of beds, baths, and square footage.
Sold listings are homes sold within the last three months, plus pending sales that are likely to close by the time your home is sold.
Off-Market or expired listings. These are properties that were taken off the market for any reason.
Content by Krista Weber Irvine Realtor