Gain ALL the Equity in Your Jewel

A Comparative Market Analysis (CMA) is used to indicate what similar homes have sold for in the recent past and the most likely price range in which your home should sell. Ideally, if you had three identical homes that sold in the past 6 months on the same street, the average would be the best indication of the sale price for your home. Unfortunately, it is not usually that easy. In order to determine a fair market value range for your home, we need to find similar properties that have sold in the past 6 months.  The following criteria are some of the most important factors in determining price: 

Style- We try to compare as similar a home as possible. In general, we try not to compare a ranch to a colonial and vice versa. 

Functionality- Room count, number of bedrooms, number of bathrooms, and living square footage, are some of the more important criteria for home buyers and investors. 

Appeal- You can have two homes that function, and even look the exact same, but the appeal will play a large role in determining the fair market value.  Neutral colors should be used in staging the home.  All personal items should be removed.

Location- Most buyers would love to own a home at the end of a cul-de-sac, in the best neighborhood. The pricing difference between such a home, and an identical home backed up to a busy highway, would be quite drastic. 

Condition- What is the overall condition of the property? Does it have any maintenance issues that have been neglected over the years, or has the property been properly maintained?  If not get it there before you list.  Don’t let the buyers think that the home is in “disrepair”, and may be “problematic”.  Avoid any unnecessary concern for the buyers.  Many repairs can be done easily to effectively prepare the property for a happy and successful experience.

In a healthy market, it is surprising to some that many properties turn into expired properties (properties that didn’t sell, and the listing contract expired).  Properties actively for sale, will have one or more price changes before finally going under contract.  Staging, and/or Improper Pricing Strategy are to blame 90% of the time.  Staging and Pricing are the two most crucial steps to gain the most equity from your investment.

The following, despite how so many declare it so, have little or no bearing, on the price of your home: 

Over Improvement- Improvements should be made for your enjoyment, not just for re-sale.  However, that gorgeous imported Italian tile may not give you the money back you might expect. 

Need- An owner’s need or want for more money does not increase the home’s value.  It comes down to basic supply and demand, all things being equal.

Buying in a Higher Priced Area- Values are location specific. Higher values in your destination area do not increase the value of your existing home.  See location above.

High Original Purchase Price - Chances are you paid market value.  In some instances, it may not be that the price was too high but a downturn in the economy or an inventory change, since the property last sold has caused an adjustment to the price based on the current supply/demand market.

Lack of Factual Data- It may not be easy to value of your unique property. Some homes are quite unique and it is possible there are no "real, like comparisons", a special CMA will be necessary.

Bargaining Room- Buyers may offer low, but they will do that at any price.  It is easier to negotiate up to fair market value than to an inflated price.  Never Over Price!  

The Move Isn’t Necessary- Even if your move isn’t urgent, it is important to price correctly to preserve your marketing opportunities, if the move then becomes urgent.  Consider instead, that the history of your adjustments to your listings remains on the MLS for some time.  It can give clues to the legitimacy of the sale and the price.  This turns buyers off.  And believe me, they’ll find out.

It is important to remove all emotion from the process and look at all the data objectively.  Fair market value of your home is based on history, current market indicators, as well as many, many other factors.  It is not based on emotion, need, or want.  Determining a price for the property is not as easy as one might consider.  Become educated, and properly prepared, so that you will make meaningful decisions.  And you will confidently choose the best plan to gain the most equity in your investment.  

As always, I’m here to help.  Give me a call!   Juli-Ann 728-900-2890