Real Estate – Benefits of a Market Analysis
When a real estate agent estimates a selling price for your home, most people believe the price is too low. But, a good real estate agent performs a Market Analysis of your neighborhood and surrounding area. Many different factors go into this analysis and it is important to hire an agent rather than going at a home sale blind.
The market analysis will look at your home and the other comparable homes in the neighborhood. This means it will only compare properties which have the same features as yours. If you have three bedrooms then the analysis will look at other three bedroom homes. The market analysis will evaluate homes which have sold in the past six months. It will also look at homes which were listed and did not sell. The last thing the analysis will include are homes currently on the market.
By getting an average of the different prices, the real estate agent can present a pretty good indication what your home should sell for in the present market. You may feel the price is too low. Many sellers feel this way. However, the market analysis is extremely accurate.
The market analysis will show you the listing prices of the houses in your neighborhood for the last six months to a year. You will then be able to see if they sold for that price. It may shock you to learn many of them did not sell for the asking price. If they did, then stipulations were probably made by the seller, buyer, or both. These agreements could be things like the seller agreeing to pay closing costs or points. Either way, the asking price the seller was hoping for was lower.
Be careful of the real estate agent who does not do a market analysis. Stay away from the ones who ask you what you want to sell your house for. You want a professional who knows how to market your home and will get the best price for it. In order to do this he or she must evaluate the market to establish what is selling and what is not moving at all. There is going to be a price range your home will fit into. This is what a good real estate agent will explain to you. He or she will usually list your home for the higher end of the price bracket.
By setting the price a little higher, not a lot, you have a negotiating chip. In today’s buyer’s market a buyer may ask you to pay the points or closing costs or both. You may be asked to contribute the down payment. When the buyer does this, sometimes the house actually can sell for more than the asking price. It is one of the ways buyers who are a credit risk can afford to buy a home.
You should never ask more than the market will bare when setting the price for your home. You need to carefully consider all the options when determining your price. Things like how updated the kitchen is or how big the yard is can have a lot to do with what your price will be. There are other things you can do to get top dollar for your house.
Curb appeal is one of the most important things in selling a home. If a buyer drives by, you want him or her to notice your house. It must look nice and orderly. If it appears run down and in need of repair, people will just drive by. It may be hidden by trees and shrubs. Cut them down and let the neighborhood see how nice your house is.
A good real estate agent will be able to list your home at a fair price. He or she will be able to tell you what must be done to get the best possible price for your home. They are the professional. If you listen to them, your house will sell.
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