Everyone knows that prices are determined by Active listings, Sold listings and pending sales: i.e. the market. Not what you paid for the house. Sometimes a listing agent will exaggerate the value of your home to secure your business, then later ask you for a price reduction once you are locked in a 6-month contract. Ask for the data to support the suggested list price, customarily good agents deliver this information in the form of a Comparative Market Analysis or CMA. If they can’t produce the data justifying the price, that may be a red flag.
A Comparative Market Analysis (CMA) – should include homes that are similar to yours in location, size, features, and upgrades, that have sold recently, are on pending sale or are active in the market. Square footage upgrades and condition is also a factor in a CMA. A CMA demonstrates that the real estate agent took time to research your home and come up with a marketing strategy to sell it at a top price and fast. Do not hire a realtor that doesn’t present you a CMA.
When the house is overpriced, it will take longer to sell and it may become a stale listing. Stale listings make buyers think they may be able to haggle the price with you because they think there may be something wrong with the home.
Even if we accomplish a high offer, all offers are contingent on appraisal unless specified. If the appraisal comes short of the price we may have to adjust the sale price not to lose the buyer.
A good agent will guide you through this process and suggest a competitive but good price value for your home.
The Santana Group at Coldwell Banker