The market sets the price, not wishful thinking or any other factors. It is a simple law of supply and demand. Here are some things that have no actual impact on market value :
- How much you need to purchase your next home.
- How much you paid for your home in the first place.
- How much you spent on improvements. We consider the improvements themselves and how much value they bring, not the dollar value you are trying to recoup.
- The value of a similar home in a different community.
- The cost to build the same home today.
My job is to help you set a realistic price to match market conditions so your home sells quickly
for the best possible price. Where my expertise comes in, is in the comprehensive analysis of
what comparable/similar/competitive homes have recently sold for in your neighbourhood,
weighing that with your home’s unique features. This process is known as a Comparative
Market Analysis (CMA) and it is generally considered the most effective method of determining
what potential Buyers will be willing to pay for your home.
Contact Ivan for a Complimentary Market Analysis of Your Property
The CMA is divided into three categories:
1. Similar properties that have recently SOLD: By studying these, we can see what homeowners
have actually received for their properties over the last few months.
2. Similar properties that have currently been LISTED: These properties show exactly what
alternatives a serious buyer has to choose from.
3. EXPIRED LISTINGS were listed and did not sell. You can learn from their mistakes as they
could be as a result of overpricing or other factors like location, layout, poor marketing etc.
By carefully studying the comparable property locations, features and terms, we can develop a
clear picture of the potential market value for your property. This is a similar process that banks
and lending institutions use in determining how much they will be willing to lend you for your
home.
In addition to the CMA, I will help you develop a competitive price based on other key factors
such as:
- Location
- Size
- Style
- Condition
- Community amenities
- Market conditions
Listing your property at market value is essential to a successful sale because Buyers will not
be looking at either overpriced or underpriced homes. Most Buyers working with Realtors®
receive property listings from their Realtor® via email, who is searching for them within the
parameters of their needs. If the buyer’s budget for a home is $800,000, they are likely only
looking at homes priced from $750,000-$850,000. You want your property to be seen by the
Buyers who want a property like yours.
Another important factor to determining the correct price is that your home will lose its
“marketability” after sitting too long on the market. There may be nothing wrong with your home,
other than an unrealistic price, but it will eventually develop a stigma. Buyers will forget all about
the overpriced home they saw weeks earlier; Realtors® searching on behalf of new clients will
see the DOM (days on market) and wonder what is wrong with the property and why it has not
sold yet. When they look at the previous selling price(s) and comparable properties they may
not be willing to present your home enthusiastically to their clients if they feel it is not priced
correctly.
You will attract more interest on your home if it is priced realistically and Buyers will most likely
bring their best offer if they really want your home.
Most Buyers take between 2 and 6 weeks to build confidence and collect information about
prevailing market conditions before making their first offer. By the time a typical Buyer is ready
to make an offer, they will have seen all of the existing properties for sale in your neighbourhood
and will only be waiting to see new listings as they arrive on the market.
This means the first few weeks after listing are the most critical since the number of prepared
Buyers who will see your home will be at its peak. As a result, many vendors often come to
realize that the first offer is usually the best offer. Listen to your agent’s advice and price right
from the beginning.
Sellers Guide: