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Monday, November 26, 2012

How come you did not include the highest priced homes in your market analysis?

When preparing to sell your home it is critical comparable properties be examined to determine a realistic market price.

These comparables will be extracted from several categories of homes including sold, under contract, active listings and expired properties. 

A good comp is a home that is as close as possible to your home (proximity) and similarly constructed (age, square footage, materials similar such as wood frame or concrete, same bedroom count as well as garage size, etc.).

So when all these "comps" have been gathered some sellers will ask "How come you did not include the highest priced homes in your market analysis?"

Most sellers know what is for sale in their neighborhood - especially the highest priced homes!  And they will expect the higher priced homes to included as well.

But, in my market analysis, they are not included yet.

They will eventually be included as expired that did not sell!

One of the major indicators of an overpriced home is the days on the market.  If a home has been on the market longer than usual there is a reason.  It could be a simple thing called motivation but is most likely simply price.

Lets face it…buyers have information available in today’s market more than any other time.

They will know what homes are selling for in your neighborhood.  They will know what you paid for your home.  They will know when you are overpriced.

And that is exactly the reason to avoid using an overpriced home as a comparable property when listing you home.

Considering selling your Brevard County, Florida home?  Email me or call me for a free market analysis.

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