How to Price Your Home
I’ve been thinking a lot about properties and their values recently. We all know we are in a unique market, and you may be wondering if you can get your property sold at a higher value. The answer is yes. To successfully sell your property at a higher value, some things need to be addressed. The first consideration is your needs as a seller.
Here are some strategies and the factors that need to be considered to sell property faster with a higher value.
It’s not just a CMA versus others that will tell you the value of your property. A Comparative Market Analysis will show you the price of properties within a few kilometers of your property and similar features and then determine the sales price. But that’s not the end of the story.
The next step is to consider your property’s geographic location. The comparables used in the analysis will be less than a kilometer away, but they won’t be the same value. Why? Because the value of a property is determined by the current sales price rather than how much it was worth a year ago. The comparables are not necessarily the same condition. The condition of the comparables is a huge variable in determining the value of your property and can make a difference between a high and low value. So if you have a comparable in excellent condition and has sold for $875,000 a year ago, but your property has been deteriorating, you will have to adjust the value to account for this.
Compare your property’s condition and location. Does it have the same amenities? What amenities are included? Do you want to include only the pool or include the sauna or Jacuzzi? Can you find a comparable property that has an even more desirable amenity? But, it might be harder to find a similar property with a higher value.
A comparative market analysis will give you an extremely low valuation for your property because it relies on recent sales data, and all data is local. As a result, if your parcel has not sold or has sold at a much lower price than your comparables, the analysis won’t be as accurate as if your property has been on the market for the same length of time as comparables. The market is constantly changing, so that will change the comparables and the value for your property. But if your property has been on the market longer than the length of time, that’s why the analysis might be less than accurate.
You also want to look at your property’s comps from the beginning. This will give you a sense of what prices were like for comparables that have been sold within a reasonable period.
You need to understand the difference between an appraisal and comp. An appraisal will not reflect the true value of your property. It will reflect the estimated value based on similar properties in the same area and similar attributes but will not be based on recent sales. To obtain accurate comps, you need to look at the property that’s been on the market for some time and for which we have both comps sold and active listings.
Once you’ve gained a feel for what the comps are telling you, you can then determine what your home is worth. So be sure to take the time to compare your property to both active and recent comps. Also, don’t forget to consider the market dynamics at the time, such as new construction apartments that have not yet saturated the market.
In the end, a CMA is an estimation tool that is meant to give you a general idea of what your property is worth. It is an estimate based on the current market conditions, but it is not meant to be anything more. It is a tool to help you decide how to price your property. For instance, if the current CMAs suggest that the comps are off, you may want to adjust the comps to represent the true worth of your property more closely. The market is dynamic, and the CMAs are an excellent way to assess but are not meant to be the be-all and end-all of property valuation.