THE RIGHT PRICE OF YOUR HOME: 

Attracts More Buyers

You Can Sell for Fair Market Price

Helps You Sell Quickly

Pricing is a Process, Not an Event!

For most homeowners, listing their house for sale isn't a spur of the moment thing.  People often think about selling their house for years before actually selling it.

Yet, given how much time and thought people tend to give it, many people don't do enough to prepare their house for sale (or prepare themselves for what's to come).  They just get to a point where they decide it's time to sell and they pop a sign in the yard.  This often leads to people not selling their house for as much, as quickly, or as smoothly as it could be, or at all.

Determining a fair market price is done by considering a number of factors:  one of the most common methods used is called a CMA or Comparative Market Analysis.  The jargon might be confusing, so think of the market analsyis as a report of activity, activity that is based upon the law of supply and demand.  The CMA may use up to 4 categories of housing data to determine price.  Homes in all 4 categories will be compared to yours using factors such as location, size, condition, style, number of rooms, and features.

The 4 categories of housing data are:

RECENT SALES
This represents the prices buyers have actually been willing to pay for a home in your current market.  If possible, those sales should be less than 3 months old.  If the market has changed, the use of old data will distort the results.

CURRENT LISTINGS
This represents the prices of homes you will be competiting with.  These are the homes that the buyers will look at and compare to yours.  I have a question for you:  When you bought your home, how did you determine what to pay for it?  Well, if you are like most prospective buyers, you looked at several properties.  And during that process, you became knowledgable about the supply of housing and gained an understanding of values in the area.  Well, buyers are still comparison-shopping today.  The average prospect looks at 18 homes before making a decision.  If you have the time, consider looking at 2 or 3 houses on the market that are closest to yours in terms of size, style and neighborhood.

PENDING SALE
This represents competiting properties that have received an offer, taking it off the market, but hasn't sold just yet.    Although the selling price of these homes must be held in conficence until the settlement of the transaction, these amounts represent the listing prices that have recently attracted offers in today's market.  They are an excellent indication of current activity.

EXPIRED OR CANCELLED LISTINGS
This represents the number of homes that did not sell or were withdrawn from the market for various reasons, such as price, location, lack of amenities/features, lack of marketing, or Seller changing their mind about selling.

Did you know that a house takes on a reputation surprisingly fast?  Don't wear out your welcome on the market!  You don't want to "test the market" only to reduce the price two weeks later because your best, strongly motivated prospects tend to come through during the first 2 or 3 weeks.  Once you place your home on the market, every real estate agent will call their curent prospects to tell them of your home.  These first prospects have been looking for a while, are highly educated, and probably have a good feel for value.  It doesn't make sense for you to have them see your home and then reduce the price after they have all gone through.  Take advantage of the competitive feelings a new listings generates and price your home correctly from the start!

So, how much do you think your house will sell for?  Most people have a number in their head.  Some people just pluck it out of thin air.  Others look at online sites.  Some take how much they owe, add the amount of money they've put into the house in upgrades, then add how much commission will be, and then add how much they want or need to be able to buy their next house.

Unfortunately, none of those methods are accurate.  You'd be better off buying one of those magic eight balls and giving it a shake.  Or better yet, put a bunch of prices on a dartboard and throw darts until you hit the one you like best.

The problem is, many homeowners do have a number in their head, and that number is often unrealistic.  They tend to get defensive or angry when they hear the truth, insisting on listing their house for more than it's worth.  Then they'll shop around for an agent who says what they want to hear (just to get the listing).

Listing your house for more than you should is one of the most deadly sins of selling your house.  You could prep your house in every way possible and make it look better than anything else on the market, but if it isn't priced correctly, it will never sell.  And over time, you'll lose leverage (and money) because buyers take not of how long a house has been sitting on the market.

The most accurate way to know how much your house is worth is by having me prepare a CMA for your home.  You are better off pricing your house accurately from day one.  This doesn't mean you're "giving your house away" or are "losing money."  Yet, many people feel that way because they have an inflated value in their head.  But that value and that money never actually existed.  So the best thing you can do is to unthink whatever value you have in your head.  Do whatever it takes.  Reset your thinking so you can be realistic with your homes true value.

Read through the comparative market analysis that the Rama Mehra Team will provide to you.  Trust that our team is extremely knowledgable and truly understands the current real estate market.  Base your hopes and next move on the range of value in our CMA and not on any other number you thought.  Give Rama a call today to schedule a free consultation at (925) 415-0835.

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