When selling a home, it’s important not to base your listing price off of what you paid for the home, or how much is left on the mortgage. A home’s value is what a buyer in this market will pay for it, so the best way to determine a property price is to look at recently listed and sold homes in your area.
Edina Realty REALTORS® across every neighborhood in Minnesota and western Wisconsin are trained to evaluate a home’s value based on factors like its location, condition and unique amenities, and how it compares to recently sold and listed homes nearby. This unique process is called a comparative market analysis, or CMA. A CMA is the most comprehensive way to assess a home’s value and thereby, its best listing price.
How does a CMA vary from an online estimate?
In recent years, online estimates have popped up all over real estate search sites, and they often set an early tone for buyers and sellers about what a home is worth. However, online estimates are produced via computer-generated models, and often miss unique attributes and information about a home’s current condition.
For example, if you bought a three-bedroom home ten years ago but have since added two bedrooms and egress windows to the previously unfinished basement, an online estimate may base the property value off other three-bedroom homes in the area. A Realtor who assesses the home in person would know to price it higher due to the added bedrooms and buyer demand for homes with more finished living space.
How do I “price to sell” without leaving money on the table?
It can be tempting to over-price your home, but studies show that most buyer interest happens within the first two weeks on the market. It’s really important not to lose momentum during this critical period by pricing your home too high. Today’s buyers are savvy, and they often set up online search parameters based on typical home prices for the area. By pricing your home too high, you may jeopardize not only the website visits to your listing, but also in-person showings where buyers can fall in love with your house.
Last, any seasoned agent will tell you that buyers are wary of homes that stay on the market for long periods of time. Even the best homes begin to look unappealing to buyers who will wonder why such a great home isn’t selling.
Getting started on the home selling process
Setting a price for your property can be tricky, but it’s also a great time to collaborate with a Realtor who can offer expert insights on your home and its condition. Contact us today to get a complimentary CMA with absolutely no strings attached.