Professionally prepared, Competitive Market Analysis (CMA): This is the first, and perhaps, the most relevant tool, which should be used, in this process. However, it involves far more than merely glancing at what prices homes may be priced at, or have sold for! When done professionally, the subject properties are carefully selected/ chosen, based on factors including: location; when they sold; how similar they were to your home; number of rooms; size of property; condition; factors such as improvements and/ or distinguishing characteristics, etc. A plus or minus figure, must be used, to compare these subject properties (also known as Comparables) to your house, and a relevant, price range, should be indicated and presented.
2. How quickly does the homeowner wish to sell? One of the often – overlooked considerations is called the Opportunity Cost of Money! Remember, every month your house remains unsold, means you continue to pay taxes, your existing mortgage, maintenance, etc. This does not mean accepting any price, but emphasizes why having a realistic listing price, is suggested. No one knows for sure what a house will sell for – only the real estate market will determine that, and what an individual buyer might be willing to pay!
3. Homeowners needs, and house’s condition: It is up to the seller to determine what he will accept, but he should factor in the condition of the house and property, into the equation! Are there any minor improvements/ tweaks, which might be worth doing? Discuss this with your real estate agent!
4. Tolerance for hassle: One’s temperament, and tolerance for hassle, are also factors. Some may be willing to gamble and play hardball, in order to squeeze the last nickel out of the deal, while others would rather get it over, especially if the difference is not that significant!
5. Reality: Charlie Brown says, Reality – what a bummer! He is absolutely correct, at times! Statistically, the best offer comes in the first few weeks, so my suggestion, is to price a house, correctly/ right from the start, and give yourself the best opportunity!