As a Broker Associate with over 31 years of experience in the Anaheim, CA and Andover, MA Real Estate Markets I have found that pricing strategies work most effectively when they are based on market data and trends when valuing a property. However, in the end, the market will determine what it is willing to pay for a property. By preparing a comprehensive Comparative Market Analysis (CMA) based upon the following factors, we provide the best opportunity for forecasting a price that will be attractive to potential buyers yet high enough to realize the best value for the seller:
Location, Location, Location
Competition (Solds, Pending Sales and For Sale Properties in last 6 months)
The Market (Supply & Demand)
Features (Size, #Bedrooms, #Bathrooms, Amount of Land, #Garages)
Scarcity Factor (Unique Location i.e Water Front etc)
Timing (Fall & Spring Markets are the best time to sell; Summer and Winter best time to buy)
A common mistake sellers make is to ignore the market data and attempt to list their property too high in price. When a price is too high, the market knows since they are looking at the market data and typically stay away from viewing the property. This causes the seller to panic and start lowering the price to attract buyers. The longer the property sits on the market the greater the potential to stigmatize the property in minds of buyers and REALTORS® as they question why a property has not sold and questioning if something is wrong and or creating a waiting game to see how low the price will go.
Note the graphic below shows that the highest volume of showings occur in the first 3 weeks when the property is new to the market and people are curious. If priced properly, the property can attract multiple buyers. If over priced, the traffic will slow quickly after the initial showings. Preparing a house to sell is very disruptive and requires a great deal of work. Our approach is to get the best price and terms for your property so you can “Get On With Your Life”. This is one of the reasons we have been so successful.
Bassed upon our market research for 2011 below, you can see how pricing your home right saves you time and money.