How Listing Price is Determined
When it comes time to list your home, you might be confused on how exactly a real estate agent comes up with a suggested listing price for your property. The answer? A Comparative Market Analysis, or a “CMA”, as it is more commonly known in the real estate a world. So what exactly is a CMA?
A CMA compares your property with other like (comparable) properties that are currently on the market, have sold, or even expired from the market. This data can be collected from the Multiple Listing Service, and helps your agent gain an overall view of market conditions in your area. There are many factors that go into determining the potential listing price for your property, such as condition and location. A home in the middle of town might be priced higher than a home far away, depending on which location buyers find more desirable. If your home is in need of maintenance, such as a new roof or landscaping, your agent may suggest listing your home for less to account for the needed repairs.
Pricing your home correctly is key. If you are looking to achieve a quick sale, your agent might suggest placing the property on at a lower price to gain more attention. If your home is priced too high, it is possible your property will not sell quickly, and you might have to reduce the price down the road.
Pricing your property for sale is certainly an art, which is why working with a knowledgable and experienced real estate agent is important. Click here to learn about the expertise of our agents!