Establishing A Price
Hey, everybody, Jon Sump here at The Home Brokerage again, bringing you our next step in what we call our home selling process. This is step number two, establishing a price for your home. How do you establish a price for your home? Is it just what you want? I wish it could be that simple, but that's not actually the case. So when you meet with myself or any other realtor, they're going to bring out with them to you what's called a CMA or comparative market analysis. In this package, you should have at least two or three homes that are on the market that are somewhat comparable to yours, as close as possible. Two to three, four that are in escrow to similar as yours as possible, and as many as three or more that are sold that are comparable to yours as possible.
And you use that as somewhat of a guideline in pricing your home. Now, I mean, the thing about pricing a home is you've got to understand is this, it's not really an art, and it's not really a science because no two homes are exactly identical unless you're buying them brand new. So what how do you price the home so you get it sold? Well, if you look at this little chart right here, you'll see that this actually came from the National Association of Realtors. And what it talks about is you look here, you see where it says market value. That's a price that a buyer and a seller are willing to come to agreement on, where buyers are willing to pay and the seller is willing to accept. However, and that's kind of where you kind of get by looking at all the comps to get it as close to that as possible.
But if you're 10% above it, you drop the percentage of buyers by half that would even be interested in looking at it. A lot of times buyers that are qualified for what your home's real value is at that market price can't even look at it when you overprice it because it's out of price range. If you go much more than that you'd drop the percentage of buyers down to only 10% of what's available in the market of buyers for your home. So when you're looking at it, you want to think about it like one of the things I tell my clients is this, "When you're pricing your home compared to the other homes that are on the market or in escrow, and then have sold similar to yours, what price would cause you to want to take a look inside that home?"
And that's probably pretty close to what a buyer would want to do, so keep that in mind when you're looking at selling your home. It's really important that you price it properly to attract people to your home. It doesn't mean you going to sell at that price, but price it aggressively where you can actually get the most people into your home as possible. So again, hopefully, this has been helpful. Again, here's the biggest tip, when you don't have very many people coming through your home, your price is too high. You have people coming through your home but no offers you're only a little bit too high. If they're coming through your home and writing offers in the first week to 30 days, you're right on the market, okay. Hopefully, this has been helpful. As always, please like and share. Check out our YouTube Channel and make it a great day.