Now that I understand the CMA, how do I price my home?
As a starting position we recommend the same strategy in every neighborhood – View the selling process as a reverse auction and let the market tell us what it is worth. Keep in mind it must be able to appraise for the contract price. It is best to start at the top of the range and bring the price down based on the interest level (showings and feedback). If it is showing often and feedback is reasonable it is priced in the right range. How fast you bring your price down determines how fast you will sell your home. If you need to, we can sell it for cash at 70% of value in 5 days, 100% of value could take 5 days or a year. We don’t know when the buyer will show up for a particular price. Obviously, the lower the price the more interested buyers.
It’s your decision on what you price your home for. Unlike a traditional agent we are not going to try to convince you to price your home lower for a quick commission. From the information in the CMA, combined with your own unique experience of living in the house and familiarity with the neighborhood you are more knowledgeable than any real estate professional out there. Unless we see the home, it is unfair to suggest a price range. This is the beauty of being a Flat Fee Broker. I don’t need to convince you to “price it right” to make a quick commission.
Keep in mind this strategy does not fit all situations. The higher the asking price risks having the home on the market longer and higher carrying costs and other risks. There is a risk, should your buyer finance the purchase of your home, the appraisal can come in low and the buyer terminates or you accept a lower price than your contract price. In some cases the buyer can make up the difference or part of the difference and a new price is negotiated.
Sellers often say “well, a buyer can always make an offer.” The problem is that when you’ve overpriced it, buyers might not look at your home in the first place, let alone put in an offer. You have to entice with the price. Buyers believe what you are asking for your home is what you want for it.
We discuss pricing scenarios in more detail when we meet with you at the property and review your market analysis with you. We assist with your pricing decision and support situations that arise from your pricing decisions.
Notice: This website contains general information about possible legal and financial matters. The information is not advice, and should not be treated as such. You must not rely on the information on this website as an alternative to legal or financial advice from your attorney, accountant or other professional legal services provider. If you have any specific questions about any legal and financial matter you should consult your attorney, accountant or other professional legal services provider.