As spring’s eager tulips thrust up through the ground, for sale signs are already blooming on front lawns in the area, and you want to get in on the action. When it’s time to put your home on the market, you want it to sell quickly and for top dollar. But how do you calculate the right price for your home? Many home sellers turn to comp sales, or a Comparative Market Analysis (CMA), for the answer.
By looking at comp sales and pricing your home appropriately, you can ensure the property doesn’t stay on the market too long before drawing interested buyers. But just as importantly, you can be sure you aren’t leaving money on the table when you sell your home. Pricing your home by comparing it to similar properties that are actively listed or have recently sold allows you to sell your home quickly and get a fair price for it. Bottom line, comps will help you determine the current market value of your property so you can determine the right asking price.
Understanding comp sales, or CMAS
Your trusted real estate agent can provide you with a compilation of active listings and home sales in your area of town from recent history. A CMA lets you get an oranges-to-oranges look at selling prices for homes that are similar to yours. But you can also search for comps yourself by doing research online. You can whittle the selection down to comparable properties by looking within several established parameters.
Factors to consider when looking at comp sales
Here are the factors that determine whether comp sales are a good litmus test for how to price your home.
By looking at properties that are similar to yours and the price for which they are listed or were sold in recent history, you can begin to determine an appropriate listing price for your home.
Pricing your home right, for results
Of course some of us live in a dream home, and when that is the case it may be possible for you to tack on a premium, according to www.thebalance.com, “How to Price Your Home for Sale.” But for most of us, comparing our home to houses that are similar in location, size, age and other factors allows us to formulate a realistic price to ask for our property. When you have used comps correctly to assess the value of your home and determine the right asking price, you’re sure to see results when your home hits the market.