Pricing your home correctly just may be the most critical factor in the entire home-sale process. Pricing for a timely sale is key because, as numerous studies have shown, the longer a home sits on the market, the less money it will ultimately fetch when it finally does sell. You certainly don’t want to price too high, but you don’t want to price too low either because that too can hurt your chances of a sale.
Here are 5 things to consider when pricing your home in the Long Island.
1. All Aspects of the CMA
The comparative market analysis (CMA) that your agent prepares should form the basis of your decision for pricing your home in Long Island. A CMA considers the prices of homes recently sold in your neighborhood that is comparable to your home. It also considers homes that are currently on the market (active homes). These homes will be your competition, so it is very important to know the price point of those houses.
In pricing your home in the Long Island, you need to pay attention to all aspects and evaluation criteria of the CMA:
- Area and location
- Market Statistics Report
- Style of Homes
- Days on Market Report
- Size (square footage and number of rooms)
Be sure to ask your agent to explain why each home was included in the CMA and whether and why she eliminated any homes from the CMA. This is all critical information for pricing your home. (To find out more, call (631) 357-4819.)
2. Differences Between Homes
Another key factor for correctly pricing your home in the Long Island is understanding that no two homes are exactly alike. A home may be similar to or comparable to yours on the exterior but the interior can be vastly different. Your home and comparable homes may have the same square footage and the same number of bedrooms and bathrooms, so they should be priced about the same, right? Not necessarily. The floor plans may be entirely different, updates in material used or updated appliances will affect the price of a house.
3. Local Market Nuances
Local markets are small micro-niches and there can be nuanced differences and even significant differences between them that affect pricing. In comparing homes currently on the market you need to be aware of many variables. A similar house just a few blocks from yours does not necessarily mean it is valued the same. If that house is in a different school district or in a different tax zone, the value can be very different.
Each community in the Town of Babylon has unique features and housing prices are reflective of these nuances. It is very important to keep in mind where your house is located within your community so that you can make practical decisions when pricing your Long Island home. The expertise of a local real estate agent is invaluable in guiding you to the right listing price. (Call (631) 357-4819 to discover how a knowledgeable local agent can help.)
4. Sold Properties
Another factor to consider in pricing your home in the Long Island is when comparable homes sold. Local markets aren’t static, and conditions are always changing. This means that a comparable home’s selling price will assist you in pricing your home only if the current market is similar to the market when that home sold.
If, for example, the market when that comparable home sold was less competitive than the market now, you may be able to price your house higher. On the other hand, if the market was more competitive then, than now, you may have to list your house lower. In a competitive market, buyers are competing for homes and a homeowner can expect to get top dollar for a home. As the pace slows down with less buyers available, it will effectively drive down the price of your house. You must understand and compare market conditions in order to correctly price your house. Again, a good real estate agent who is knowledgeable of the area will be able to give you that much needed guidance. (Call (631) 357-4819 to discover how a knowledgeable agent can help.)
5. Agent as Resource
It should be fairly obvious, that pricing your home in the Long Island involves more than looking at a handful of similar sold area homes. Extensive experience in pricing, knowledge of the local real estate market, market statistics and projections are but a few qualities needed to position your home on the market so that you can reap the most financial benefit from its sale. The sooner you begin to use your local real estate agent as a pricing resource, the more beneficial it will be for you.