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7 Important Considerations When Pricing Your Home for Sale

February 16, 2020 by idxcentral Leave a Comment

7 Important Considerations When Pricing Your Home for SaleSetting the right price for your home can be an overwhelming undertaking, but it’s so important! Luckily, our wonderful real estate agents can help us compute all of the housing market lingo, data and overall confusion. That being said, it’s still helpful to understand how the process generally works. We’ve arranged these seven important considerations when pricing your home for sale:

1. Seek advice from a real estate expert.
You don’t have to figure this stuff out on your own! Real estate professionals are here to guide you. Trust in the value of their expertise! Your real estate agent can conduct a CMA (Comparable Market Analysis), which will do most of the heavy lifting for you. A CMA is a home evaluation tool that real estate experts use to estimate how much your property is worth. Avoid automated CMA’s on big company websites or price tools like those found on Zillow, both rely on inaccurate data. The only way to get an accurate CMA is through a trusted real estate agent”

2. Examine the prices of currently listed and recently sold “comps.”
It is crucial to study “comparables,” often referred to as “comps,” when pricing a house for sale. Comps are recently sold homes that are similar to the one you are selling in terms of size, age, location and condition. Take a look at homes that have sold within the past year – or more ideally, the past three months – that are comparable to yours and in the same area. Generally, you will not want to deviate far from these figures.

Take the characteristics of the area into consideration, as well. For example, is your listing in a very remote area where you may be hard-pressed to find any decent comps? In this case, it may be necessary to look over a wider area to find properties similar to yours, or you can even consider a different residential area with similar features. In other areas, the value of a home can increase or decrease significantly just by going around the block or “across the tracks.” It’s important to be aware of these details when analyzing comps!

3. Study how comps were listed versus sold.
All homes put on the market are initially priced and listed according to various factors. But the selling price can be higher, if the seller is lucky, or lower. When examining your comps, it’s helpful to look at these ratios to have an idea of market fluctuations, and what sellers may have done right or wrong. Your real estate expert can help you learn these details.

4. Review how long comps were on the market.
Investigate how quickly or slowly comps were sold, or even withdrawn or expired, for valuable pricing feedback. If certain comparables were sold much faster than others, try to find out why.

5. Pay special attention to the square footage of comps.
It’s good to keep in mind that all listings will eventually be appraised. Appraisers aim for accuracy, but even so they can stray more than 10-20% on their gross square footage calculations. With this in mind, it’s best to compare homes with very similar square footage in order to come near the eventual appraised value.

6. Know the market conditions.
Take everything you learn about comps and then analyze the current market conditions the best you can. How is supply and demand currently affecting the sales prices for comps? Typically you’ll want to set your price close to the last few that have sold in your area, but if supply is lower and demand higher, consider raising your listing 10% or so. Ask your Realtor for more tips on how to factor in the current market.

7. Consider starting lower.
When in doubt, shoot low, not high (not too low, of course)! Setting your price under what buyers are ready to pay will get you multiple offers. Prices can be adjusted, of course, but it’s far better to start lower and then raise your price rather than starting too high. Alternatively, shooting a bit lower means that your listing may end up the subject of a buyers’ competition, which means you’ll ideally have offers above your asking price!

Pricing real estate can be a daunting task. Fortunately, the modern world offers a plethora of information to help us get to the right asking price more efficiently. This includes valuable information about comparables, as well as significant steps like the seven aforementioned. Also, remember that your real estate professional can offer valuable assistance in pricing your home.

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Todd Su, Broker

Todd Su, Realtor

San Jose Real Estate Broker
(408) 316-9854 Primary
(408) 297-8754 Office
Contact Todd Su
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Minnette T.

Todd and his team sold my house in one day with two offers over asking price! They were extremely professional,...
San Jose Real Estate Broker
2020-08-20T15:46:55-07:00
Todd and his team sold my house in one day with two offers over asking price! They were extremely professional, kind, very communicative and on top of everything like clockwork. I have sold many properties and by far this was the smoothest transaction I have ever had.
https://www.toddsu.com/testimonials/minnette-t/

Isaac Z.

Good company and people. Even being an owner for 2 big companies, Todd always takes phone calls, replies emails and...
San Jose Real Estate Broker
2020-08-20T15:47:20-07:00
Good company and people. Even being an owner for 2 big companies, Todd always takes phone calls, replies emails and visits you on request. I was glad they sold my home in San Jose. Being the biggest mobile home company in Bay area, they have a lot of leads and connections, if you want to sell or buy a mobile home, this company will save you a lot of time and money!
https://www.toddsu.com/testimonials/isaac-z/

Mike S.

I recently posted my mobile home with Realty World. I live in the Lamplighter Mobile Home Park located in San...
San Jose Real Estate Broker
2020-08-20T15:47:36-07:00
I recently posted my mobile home with Realty World. I live in the Lamplighter Mobile Home Park located in San Jose. The service was professional and the process was very easy. My home was shown in a professional manner and an offer came in $1000.00 over asking within a week. I've sold 3 homes in my life and by far this was my best experience of any real estate company. Polite, caring and professional. Telephone calls were always returned immediately. Tina Duong handled most of this transaction. Tina was such a breath of fresh air to deal with. Very smart, she knew her material, always answered my calls, caring and always gave me 100%. Thank you Tina, and thank you Realty World. I will refer you in the future....
https://www.toddsu.com/testimonials/mike-s/

Minh N.

I would highly recommend Todd Su Realty World & Company. He has a good heart and is professional, sharp, and...
San Jose Real Estate Broker
2020-08-20T15:47:52-07:00
I would highly recommend Todd Su Realty World & Company. He has a good heart and is professional, sharp, and get job done well. He sold out our parents' mobihome for the highest price out of the 4 agents I introduced to my parents. When you need them for any questions, just a text or phone call away. They have contractors that will help you fix anything needed for mobilehome park compliance. I personally thanks Tina for helping our family communication to get things done quickly. She would drop off paperwork at our mobilehome for my parents to sign. They will make any accommodations to your schedule if possible. We have great experience with Todd and Tina. I cannot thank them enough. If you consider to sell your home, it would be your loss to not check out Todd Su
https://www.toddsu.com/testimonials/minh-n/

Sarah E.

I would definitely recommend Realty World Todd Su & Company. I recently sold my home, and the whole company was...
San Jose Real Estate Broker
2020-08-20T15:48:09-07:00
I would definitely recommend Realty World Todd Su & Company. I recently sold my home, and the whole company was a joy to work with. I realized early on that I was not secluded to one agent, I had the cooperation of an entire team! The team worked together to achieve quick results. Everyone from my direct contact to the administrative workers were amazing. Even after the sell of my home, the company has stayed in touch. Thank you!
https://www.toddsu.com/testimonials/sarah-e/
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San Jose Real Estate Broker

Todd Su, Realtor
Todd Su & Company Inc.

(408) 316-9854|Contact Todd
Realty World – Todd Su & Company Inc.

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