Pricing Your Home
Creating a Comparative Market Analysis (CMA) for your Bend area home is one of the first things your Bend Premier Broker will do in the home selling process. The essence of a CMA is to find similar homes in the immediate area of the Bend Real Estate market that have sold recently in order to determine a value for a home that hasn't been listed yet. Of course, it is never quite that simple as a number of factors need to be considered including: style of home, age, square footage, neighborhood, beds and baths, garage, stories, amenities (e.g., pool), and size of lot or acreage. There are times, as with an appraisal, that the real estate agent will not find enough immediate comps and need to widen the search parameters (e.g., location, age, square feet, etc.) and make adjustments. And sometimes there are too many comps and the agent will need to tighten up the parameters to the closest matching properties.
It is often said that pricing your home is both an art and a science. Even if you have a few good comparable properties that have sold in the past few months, an experienced real estate agent will also need to factor in a myriad of other considerations such as changes in demand and market conditions, and features that do not show up in a standard CMA such as the location within a neighborhood, surrounding land uses, and the home condition itself. The result of both these objective and subjective factors should be the optimal price to list your home, the goal of which is to attract the most buyers and allow you to make the most money in the shortest amount of time.
It is important to remember that although the price is set by the seller, the value is determined by the market. In competitive markets, it is often tempting to test the market in an effort to get more than the home is really worth, but there are a number of reasons that this may not be the best pricing strategy. Here are several thoughts to consider:
- Most of the activity on your home will happen in the first week or two. Pricing the home correctly from the start will create a sense of urgency in the minds of buyers, which often results in bidding wars in a competitive market.
- Buyers already in the market who have not found the right home or have been outbid on previous offers are waiting for the right house to come to market. If you price your home right, it will attract a larger pool of buyers, which often results in a bidding war amongst buyers who have a fear of missing out.
- Testing the market with a higher price with the assumption that you can always lower it later typically results in much less demand on the part of buyers, as interest has already waned and buyers are left fearing something is wrong with the property.
- Unless you get an all cash offer for your home, even if you do sell your home for more than the CMA can support, often the deal will fall apart later if the home cannot appraise and the buyer is not able to obtain financing.
- When you price your home too high, you inadvertently help your neighbors' homes for sale look better by comparison. Meanwhile, you could be losing money as a result of making extra mortgage payments while incurring taxes, insurance, and maintenance costs.
When it comes to pricing your home for sale, the CMA along with the advice of your Bend Premier Broker will provide you with the confidence and negotiation power you are looking for. Other resources such as tax assessments and auto-generated values such as Zillow Zestimates have proven to be highly inaccurate when it comes to determining a home's current value. Also, keep in mind that a CMA and your real estate agent will typically provide a range in pricing, not just one number. Often a seller fixates on one number and misses out on a good sale over a few thousand dollars.
If you have questions on Pricing Your Home for sale or need to connect with a Bend Premier Broker, please contact our office at (541) 323-2779, or simply fill out the form below and we will get back with you.
© 2020 Oregon Datashare (KCAR | MLSCO | SOMLS). All rights reserved. The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange Program of the Oregon Datashare. Real estate listings held by IDX Brokerage firms other than Bend Premier Real Estate are marked with the Internet Data Exchange logo or the Internet Data Exchange thumbnail logo and detailed information about them includes the name of the listing Brokers. Information provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties the viewer may be interested in purchasing. The consumer will not copy, retransmit nor redistribute any of the content from this website. Information provided is deemed reliable, but not guaranteed. Listing courtesy of Bend Premier Real Estate. Data last updated: October 21st, 2021 at 6:01pm PDT.