Founding Attorney
When hiring a real estate agent, you may be wondering how they’ll accurately price your home for sale. It isn’t magic, but there is a great deal of skill and expertise required in the process.
It’s a good idea to keep in mind that there is no such thing as a single list price. Different brokers may suggest alternative values based on their expertise in the area. That’s why it’s crucial to pick a real estate agent with expertise and experience in your neighborhood.
Before listing your home, your agent will present you with a Comparative Market Analysis, or CMA. The CMA will contain a marketing strategy that explains how the agent plans to sell the home, as well as the suggested sale price and the justification behind it.
What Is a Comparative Market Analysis?
CMAs used to be brief reports delivered to property owners by brokers. Today, this is not always the case; they can also be created using specialist software that examines recent sales as well as properties currently available on the market.
Your realtor’s CMA might tell you the following things:
- Average sale price
- Price modifications
- Local sold prices
- Number of days on the market
- Individual closed sales
- Houses that were listed but did not sell (often called “expired” listings)
- The optimal time to sell
- The consequences of overpricing
Real estate agents compare aspects of your home, including square footage and the year it was built, to find comparable homes nearby that have recently sold. They also adjust for features like fireplaces or a remodeled kitchen.
Owners have just one agent listing their house, which is why it’s crucial you choose the right one. Feel free to interview as many agents as you’d like. It pays to shop around and evaluate the services of multiple professionals before making one of the biggest financial decisions of your life.
Sales Price
It is common knowledge in the real estate industry that each property is unique. Even houses that appear to be similar, such as two townhouses on the same block, could have significant differences such as renovations or interior conditions.
Comparing “comps” appears to be a simple task, but it is more difficult than it appears. For instance, a well-landscaped property might be simpler to sell than one that has weeds and an untamed yard.
Appearances are essential when selling your house. Homes that have been modernized are usually more desirable than those left in their original state.
Slight updates such as a smart thermostat might save buyers on utilities and operational costs. Homes that have been well-maintained, painted with neutral colors, and kept up throughout the years are easier to sell because potential buyers can imagine themselves in the home more easily.
Getting a Better Price
Talk with your real estate agent about small, cost-efficient improvements you can make to get more money for your home. Painting is one of the simplest things you can do. Or it may be worth it to remodel a bathroom or kitchen if you have a bigger budget.
Sellers and listing agents are looking for the best possible price and terms for their property. Your agent should have your needs as their top priority, which means they should price your home appropriately.
Homeowners often see their houses with rose-colored glasses. This is why it’s so important to listen to a professional’s opinion about what your home is realistically worth.
Other Items to Examine
When your real estate agent presents a proposed listing price, make sure to ask about all of the fees that you may need to account for in the transaction. Determine any commissions that may be removed from your profits, as well as closing costs and potential title expenses.
Add these to any current loans or mortgages that apply to the property to determine whether the list price will adequately cover your obligations.
Merlino & Gonzalez, located in Staten Island, will work in cooperation with your real estate agent as you plan to list your home. Contact our team today.