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How Do We Determine Value?
What We Do When Pricing Your Property
Sold Comps
Withdrawn and Expired Listings
Pending Sales
Active Listings
Square foot Cost Comparisons
| HOW DO WE DETERMINE VALUE? |
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Determining the right listing price for your property is critical
in today's market. While every seller wants to get the best price possible
for their property, buyers and what they are ultimately willing to pay for
a property determines the market value. Using a real estate professional
to price your property right from the beginning will help ensure it is sold
within the time frame and for the amount you desire.
| WHAT WE DO WHEN PRICING YOUR PROPERTY |
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Pull comparable listings and sales.
Look at every similar home that was or is listed in the same neighborhood
over the past six months.
The list in most cases contain properties within a 1/4 mile to a 1/2 mile
and no further, unless there are only a handful of comps in the general
vicinity or the property is rural.
Pay attention to neighborhood dividing lines and physical barriers such
as major streets, freeways, and commercial areas.. Perceptions and desirability
have value.
Compare similar square footage, within 10% up or down from the subject property,
if possible.
Similar ages. One neighborhood might consist of homes built in the
1950s next door to another ring of construction from the 1980s. Values
between the two will differ. Compare apples to apples.
| SOLD COMPS |
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Pull history for expired and withdrawn listings to determine whether
any were taken off the market and re listed. If so, add those days on market
to these listing time periods to arrive at an actual number of days on market.
Compare original list price to final sales price to determine price reductions.
Compare final sales price to actual sold price to determine ratios.
Adjust pricing for lot size variances, configuration and amenities
/ upgrades.
| WITHDRAWN & EXPIRED LISTINGS |
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Look for patterns as to why these homes did not sell and the common
factors they share.
Think about steps we can take to prevent your home from becoming an
expired listing.
| PENDING SALES |
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Since these are pending sales, the sales prices are unknown until
the transactions close, but that doesn't stop anybody from calling the listing
agents and asking them to tell you. Some will. Some won't. We will.
Make note of the days on market, which may have a direct bearing on how
long it will take before you see an offer.
Examine the history of these listings to determine price reductions.
| ACTIVE LISTINGS |
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These matter only as they compare to your listing, but bear in mind
that sellers can ask whatever they want.
To see what buyers will see, tour these homes. Make note of what you like
and dislike, the general feeling you get upon entering these homes. If possible,
recreate those feelings of reception in your own home.
These homes are your competition. Ask yourself why a buyer would prefer
your home over any of these and adjust your price accordingly.
| SQUARE FOOT COST COMPARISONS |
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Remember that after you receive an offer, the buyer's lender will
order an appraisal, so you will want to compare homes of similar square
footage.
Appraisers don't like to deviate more 25% and prefer to stay within 10%
of net square footage computations. If your home is 2000 sq. ft., comparable
homes are those sized 1800 to 2200 sq. ft.
Average square foot cost does not mean you can multiple your square
footage by that number unless your home is average sized. The price
per square foot rises as the size decreases and it decreases as the
size increases, meaning larger homes have a smaller square foot cost
and smaller homes have a larger square foot cost.
Click here to fill out our "What
is My Property Worth?" form.
Please click here to contact Marc Wizman & Associates
or call (310) 746-8444. Thank you and we look forward to hearing from you!
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