Home buyers from all over the world are investing in Seattle’s strong economy and sought-after real estate market, so the demand for well priced homes in desirable areas continue to increase. That, however, doesn’t guarantee that you will able to sell your home for an unrealistic price.
We’ve compiled some useful strategies to help you understand the process and importance in creating a correct CMA (comparative market analysis) or coming up with a list price for your home. To learn more about how to buy or sell successfully in Seattle’s housing market, feel free to contact me at mary(at)marypong(dotted)com or 425-829-3417.
- Look at comps.
- Neighborhood location is also a criteria in picking comps. Only homes that are about a ¼ mile away from your own house will be used as a comparable listing. However, with rural or unusual property, the radius often needs to be expanded and adjusted for accordingly.
Lastly, comps should be similar to your property in terms of square footage, age, floor plan and features. Attention to this kind of detail will result in more accurate calculations.
- Compare list and final sales prices.
- Consult local market conditions.
- Leave some wiggle room.
Looking at comparable listings and sales in your area is a tried and tested strategy. This is the first step in evaluating a potential asking price for your property.
Don’t just pick any property in your neighborhood, however, for comparisons. When it comes to a comparative market analysis (CMA), we only consider homes that have sold in the market within the last 6 months, if possible. There are times that unique or rural properties or when market conditions may require exceptions.
There are many other variable factors that an experienced agent will have to factor into their CMA calculations, as well.
For obvious reasons, you will want to avoid under-pricing your property with the risk of leaving money on the table.
On the other hand, over-pricing a home can have even more adverse financial consequences in the end. Over-priced homes linger on the market and eventually require multiple price drops, as buyers begin to ignore your home or assume there must be something wrong with it.
Over-priced homes are also often used by other agents, as comparisons to properties that they are recommending as “better values” to their buyers for purchase instead.
Tour active listings in your neighborhood.
Scout the competition in your area and ask yourself: “what do these properties have that my home lacks?” It could be anything, from furnishings and additional storage to convertible rooms and outdoor living spaces.
Make sure that when you tour these homes, you come with an open mind…and look at them through the perspective of a buyer. Put yourself in the buyer’s shoes. Be objective. Identify what you like and dislike, and honestly see how these properties compare with your house. Are they realistically worth less or more than yours?
If you are open to making updates and renovations, you can even seek inspiration from these active listings and find home projects that can boost your home’s appeal and market value. An experienced agent can also advise you on the types of updates that are likely to make financial sense in maximizing your home’s sales price or not. The market will not pay you for updates or finishes that are too taste specific.
Real estate prices continue to increase in most areas of Seattle, Bellevue, Kirkland, Redmond, Bothell, Mill Creek and other areas of King and Snohomish Counties. That doesn’t mean, however, that you can put an unrealistic price on your home and expect it to sell.
Your property must be competitive in the market. The advice of a knowledgeable, experienced broker is extremely valuable in this CMA process.
You’ll also want to set a price that leaves a little room for negotiation. Of course, you are also hoping to attract multiple offers, since your goal is to net as much equity as possible. Listen to the advice of your agent and determine an accurate price (not a low asking price) that will entice buyers to come and make an offer.
In the event of a multiple offer scenario, however, your agent may not always recommend accepting the highest offer. Carefully assess the offers and the buyer’s profiles. Is the buyer making an all-cash offer? Is he or she pre-qualified for a loan? How committed do they sound based on conversations between your agent and theirs, etc.
Find more tips for selling your home
It’s an exciting time to sell real estate in Seattle. For more home selling tips, feel free to browse my website or go straight to my Sellers page. It will be regularly updated with more content, so bookmark it for easy access.
If you’d like to learn more about real estate prices in Seattle and the local housing market, you are welcome to get in touch with me. Contact me today at mary(at)marypong(dotted)com or 425-829-3417 to learn more.