PRICING TO SELL
HOW TO PRICE TO SELL AND STILL MAKE A PROFIT
The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit, and how long your home will sit on the market.
Your real estate agent’s knowledge of the overall market and what’s selling –
or not selling – will be invaluable in helping you determine the price.
The objective is to find a price that the market will bear but won’t leave money on the table. .png)
Here are some points to consider:
Time. Time is not on your side when it comes to real estate.
Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Consider the seasonality of the real estate market in your area. Certain times of the year may be more conducive to selling, allowing you to potentially command a higher price.
Therefore, if your goal is to make money, think about a price that will encourage buyer activity (read: fair market value).
No two homes are identical, which is why choosing a sales price or offer price for a home can be challenging. That’s where the comparable market analysis, or CMA, can be useful.
The CMA is a side-by-side comparison of homes for sale and homes that have recently sold in the same neighborhood and price range. This information is further sorted by data fields such as single-family or condo, the number of bedrooms, the number of baths, postal codes, and many other factors.
Its purpose is to show fair market value, based on what other buyers and sellers have determined through past sales, pending sales, and homes recently put on the market.
