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Fort Lauderdale Real Estate| Ft. Lauderdale Luxury Real Estate| Ft. Lauderdale Waterfront Condos| Las Olas
How Do I Price my Home?
 What's a good price for your home? I will prepare a Comparative Market Analysis (CMA) for your Home. A comparative market analysis provides the background data on which to base your list-price decision. Prepared exclusively for you, this analysis contains a summary of the recent Real Estate transactions in your area for properties that are similar to yours. While none of the properties included in this Analysis are exactly like yours, they do provide a good basis by which to compare your property with the "competition". The CMA also contains documentation of each property, whether it is currently available for sale, recently sold, pending sale, or was listed but did not sale (expired). A short description of each property is provided, followed by a summary table of each property's key features, which allows you to compare the features of your property with others in your area. Your home may have special features or improvements that could affect the price range in which it should be listed. Also included in the CMA is a "Net Sheet" that itemizes typical selling costs and the estimated "Net Cash" to be expected from the sale of the home. Overpricing, for any reason, is unacceptable and isn't a practice that I engage in. We will not overprice your home "just to see what happens". We are not in a market where prices are increasing. In fact, in reviewing the sales of homes from the beginning of 2007 until now (October, 2007), homes are selling for less, NOT more! Overpriced properties tend to take an unusually long time to sell, and they typically end up being sold at a lower price than they likely would have had they been priced properly in the first place. Overpricing is also dangerous in the following ways: - Limits buyers. Potential buyers may not view your home because it appears to be out of their buying range.
- Limits showings. Other salespeople will be reluctant to view your home and, instead, will take their Buyers to view the homes that are priced correctly. When many homes are available that are priced correctly, they have no need to view your overpriced home and enter negotiations with you to lower the price to a fair market price (place yourself in the Buyer's shoes for a moment and think about this). We're no longer in a Seller's Market where there's a shortage of available homes. In Broward County alone, there are over 17,000 Single Family Homes for Sale and over 23,000 Townhouses, Condos, and Coops for Buyers to choose from, so Buyers have many choices!!!
- Used as leverage. Other Realtors® may use this home to drive the sale of other homes that are better-priced.
- Before a Buyer's Agent submits an Offer on your home, they will research recent Sales of comparable homes in your area and will not be willing to offer more than a fair market price, so if you're overpriced, this means you very likely won't get any Offers at all since many correctly priced homes are available.
- Extended stay on the market. When a home is on the market too long, it may be perceived as defective. Buyers may wonder, "what's wrong", or "why hasn't this sold?"
- Wasted time and money (yours) and Lower price. An overpriced home, still on the market beyond the average selling time, could lead to a lower selling price. To sell it, you will have to reduce the price, sometimes several times. In the end, you'll probably get less than if it had been properly priced in the first place.
- Wasted time and money (mine). I invest time and money in marketing your home and my Broker does too. Time is spent marketing your home online and in print. We don't just stick your house in the MLS and forget it. A few examples of some of my personal expenses for marketing and listing your home include the printing and mailing of your "Just Listed" cards, print and Internet advertising expenses, Open House Refreshments, your Lockbox, and other expenses. If your home doesn't sell, we don't receive a Refund and we are not paid for services rendered unless your home sells.
- Wasted time and energy. An Appraisal is required to finance a home. Did you know that when you've accepted a Contract on the Pending Sale of your home, the Buyer's Lender will require an Appraisal? Along with other items, the Appraiser uses recent sales of comparable homes in your area in order to determine its Appraisal value. If your home is overpriced, it will Appraise at an amount less than your listed price and you will have to lower your price if you expect to sell your home.
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