For home sellers, before listing their property for sale in the market, they have to set the price for it. That is easier said than done though because more often than not, sellers without any knowledge about the market and without any guidance from real estate agent, would set a price that is too high. This would scare away potential customers. Also, there’s also the chance that the seller would set a price that would be too low for them to get any good return on their investment.
There are a lot of factors that a seller should consider in setting the price for the property. The location of the property for example would have a lot of effect on what price that particular property will fetch in the open market. Another thing is the current state of the property, if it is in tip-top shape or if it needs a lot of repair.
One thing that can help a seller get the right price for his or her property is a CMA or a comparative market analysis. This is a document prepared by a real estate agent containing a list of properties in the market, those recently withdrawn, and those that have been sold recently.
The list that you should pay attention to as a seller is the one containing recently sold properties as it would give you a good idea how much properties similar to yours are selling for. And when you talk about similar properties, you have to look at several things.
The first thing is the size of the lot. You cannot possibly make a good comparison between your small-sized lot and a larger one. Also, keep in mind that usually, larger square-foot houses are usually worth less than smaller square foot houses.
Another thing you should look at when comparing properties to determine the price of your property is age. Houses built during the same period would fetch similar prices with all things being equal. It is important therefore that you look for similarly-aged properties so that you can determine the right price for your listing.
These are just some of the reasons why a CMA would be of great help to you. You can also count on the help of a real estate agent to guide you through the sometimes complicated process of determining the selling price of your property. They would be more knowledgeable about such issues and would therefore be of big help.
Jason is a real estate agent helping people find homes MN for sale by offering the use of MLS MN on his site Homes MN For Sale.