Before you list your home, you must figure out your asking price. Real estate markets go up and down frequently, and many local factors and characteristics specific to individual properties can affect prices. A comparative market analysis can help you set a reasonable list price so your home will be more likely to attract a buyer.
Why Is Setting the Right List Price So Important?
Overpricing your house could cause it to linger on the market for months with little or no interest from potential buyers. You could lower your asking price later, but by then, buyers may have already shifted their focus to other properties.
If you list your house for a price that reflects its fair market value, you will have a good chance of attracting a buyer. You may even receive multiple offers and sell your home for more than the asking price.
What Is a Comparative Market Analysis?
A comparative market analysis can examine houses in your area that are similar to yours in terms of size, location, age, number of bedrooms and amenities. It can also take factors such as the school district and property taxes into account.
Your real estate agent can use software to perform a comparative market analysis. The agent can provide a report with information on comparable homes that are currently listed for sale, houses that are under contract but have not yet been sold and homes that have been sold recently. It will also include homes that did not sell because they were priced too high or that were taken off the market for some other reason.
A comparative market analysis can also provide information on the features that buyers are looking for in their next home. If your house lacks something that many people consider a must-have, such as an updated kitchen, you may be able to invest some money in home improvements before you list your house, giving your home a better shot at appealing to buyers.
Seek Your Agent’s Help So You Can Make an Informed Business Decision
When selling your home, it’s easy to let emotion influence your decisions, but you should do your best to keep that out of the equation. Set aside the fond memories you have made in your home and take a dispassionate look at how it compares to others in the area. Your real estate agent can perform a comparative market analysis, explain the details in the report and give you more information on your local housing market so you can set a list price that will help you sell your home as quickly as possible.