Many home-sellers are under the mistaken impression that it’s okay to price a home high when it first hits the market and lower it if it doesn’t sell.
In theory, that sounds okay.
However, it doesn’t usually work out very well in practice. That’s why you need a comparative market analysis.
What is a Comparative Market Analysis?
A comparative market analysis, which is commonly called a CMA, is an extremely valuable tool. Prepared by a professional Realtor(R), a CMA shows you how much money your home is worth on the current market.
How Realtors Develop CMAs
Your Realtor will evaluate a number of data points to create your comparative market analysis.
He or she will evaluate homes that have sold and closed over the past year, as well as properties currently on the market, listings that have sold but haven’t yet reached closing, and those that failed to sell while they were on the market.
Your Realtor isn’t looking at every property in town, though. He or she is looking at properties that are similar to yours in size, amenities and location.
Why Setting the Right Price is So Important
If you list your home at the wrong price, you’re not going to be able to sell it.
If the price is too low, you’re leaving money on the table — money that could go toward paying off your loan, your down payment.
If your home’s price is too high, it will sit on the market without selling. The longer it sits on the market, the fewer interested buyers will see it — and you’ll eventually be forced to lower the price.
However, a price reduction can send the wrong signal to buyers, who may not be able to see the value in your home.
That’s why it’s so important to get the price right from the beginning. You want to entice buyers by offering them real value — and if your home is priced correctly, that’s exactly what will happen.
Do You Need a CMA?
If you’re selling a home in Williamson County or Davidson County, we’ll be happy to give you a free comparative market analysis so you can determine the right selling price for your home.
Call us at 615-473-5973 or get in touch with us online. We’ll be happy to help you sell your home quickly and at the right price.