Pricing Your Home Right | The Secret to Selling Your Home Fast
PRICING your home properly is the single biggest factor,
that will determine whether your home SELLS OR DOES NOT SELL.
Our approach to Pricing your home or Price Positioning is unique. We will determine a listing price based on our expertise in analyzing Market statistics, not just a simple CMA as many others do.
Pricing your home right is important because the price your home will sell for is NOT based on:
- What you paid for it
- What your neighbor’s house sold for
- The amount of money you need from the sale
- Your personal attachment to the home
- What another agent said it is worth
Our secret to success is the 3 steps we use to price your home
We set our price to sell for the highest possible current market value in the shortest time.
- An Analysis of the Las Cruces Real Estate Market
- A Comparative Market Analysis for your home (CMA)
- An Analysis of the Las Cruces Real Estate Market
A good Real Estate Market Analysis will show you past, current, and potential future Market status and trends based on these statistics:
- The number of Homes Listed for sale (Supply),
- The number of Homes Sold (Demand),
- The Median Price of Sold Homes,
- How long it is taking Demand (Sales) to absorb the available Supply (Listings).
Months, Quarters, and Years need to be evaluated, and the data for each period must be compared to previous periods to determine a Market Trend.
Different segments of the Market like locations, price ranges, and new vs. resale homes can behave differently, and these need to be analyzed separately.
The Real Estate Market Analysis only tells us the status, and the trend of the Overall Market, or particular Segments of the Market. The important conclusion is whether Supply and Demand are in Balance, is it a Buyer’s Market (S > D), or a Seller’s Market (D > S), and which way is the moving (Trend).
Comparative Market Analysis or “CMA” and what it really tells you
Sellers often explore the internet looking at homes and prices. They may get an online Free CMA, and then both the Seller and most Agents try to base the price of the home entirely on an interpretation of the data found in this single report.
A CMA is a Report that looks at properties in the area around your home that can be considered similar (Comparable) to yours. You must be sure that all the data is current, all the comparables are truly similar to your home, and you must be sure that bias has not been introduced by the addition or exclusion of certain properties.
What you will find in any CMA Summary Report is that there is a range of Prices, and Price per Square Foot among the “comparable” sold homes. You and/or your Real Estate Agent will then need to “estimate” a price range that your home falls into, and then “estimate” a single listing price for your home. You don’t really want to guess. You want to know what is the actual Fair Market Price for your home.
To set the RIGHT Price for your home:
- We need to narrow our price range up or down based on the current state of the Market and expected future trends and look at the range of prices that similar homes have recently been selling for (CMA).
- The critical difference is to look at the pool of active listings in our price range that we are actually competing with and combine that information with the Market Analysis and CMA.
- The goal is to determine a price that positions your home at the top of the list of all competing homes. Buyers will WANT to see it, and Agents will want to show it. This Price Positioning concept is Absorption Rate Based Pricing which we discuss below.
Absorption Rate Pricing
The Real Estate Market Analysis (above) told us about the Overall Real Estate Market, the CMA (above) has given us a price range in which your home would probably sell, but we have not yet looked down into the actual pool of homes that your home is competing with. Buyers are looking for VALUE. They want the best QUALITY home for the lowest PRICE.
so that it is the best possible value among its competition.
Every Potential Buyer is watching each new listing as soon as it comes on the Market. If they are going to buy they will compare all the available homes, and select the home that gives them the Most Value and the Best Price.
You must Position your home’s Value and Price correctly from day #1.
YOU ONLY GET ONE CHANCE TO MAKE A FIRST IMPRESSION
Your home needs to rank as high as possible among the pool of all competing homes. You have a 90-day window before your home is stale. read…
THE KEY CONCEPT OF ABSORPTION BASED PRICING
What do you need to do to rise to the top of homes that Buyers want to see and Agents want to show?
You must now see all of the competing homes through the eyes of a Buyer. You must be unemotional and unbiased. Take every active listing surrounding the estimated price/price range of your home that you perceive as your competition, and do a comparison of your home against each of these homes.
Pricing your home correctly is the only way to sell your home in this Market.