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SELLERS AND COMPS
July 26th, 2016 9:11 AM

SELLERS AND COMPS

Barbara’s Blog:

Sellers are sometimes confused as to the recommendation of a sales price by a realtor and don’t always understand the many factors that affect comparable reports.  The sales price of nearby homes is only a part of the equation.  The following are a few of the important factors that determine a fair market price.

Location within the neighborhood.  If the home borders a highway, train tracks, an industrial area, or busy community road, it will most likely bring a lower price.  Comps of homes in similar locations should be pulled to explain pricing.

The home’s lot.  Hilly terrain, a steep slope, or backing directly to another home may be far less desirable than an identically sized lot that is flat and more private or has a good view.

Renovations.  Home owners who have done home-improvement projects and kept their homes up-to-date typically get a higher price for their property.  Compare properties in the neighborhood which have had renovations and sold to determine a selling price that would be comparable. 

New construction.  Land costs have dropped in some markets, making a newly built home less expensive.  Competition from the new-home segment could affect the resale home pricing.  Comps can be pulled from local builders to determine value.

Listing Price and Sales Price.  Many sellers will go online to see listing prices for other homes in their neighborhood and want to price accordingly.  But listing prices reflect what sellers are asking, not what buyers are willing to pay.  SOLD inventory is more reliable for determining the realistic price a home will sell. 

These are just a few ideas to help sellers determine a realistic price in order to sell quickly.  The longer a home stays on the market, the less interest buyers will have, so it is imperative to price correctly from the beginning!

Written by Barbara Doeringer

 

 


Posted in:Real Estate
Posted by Allen Doeringer on July 26th, 2016 9:11 AMPost a Comment

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