Who sets the asking price when a home is offered for sale? The property
owner does, however to attract buyers the price should be based on the
rock-solid market analysis and statistics. This can be provided by the
real estate representative in the form of a C.M.A. (Comparative Market
Analysis).
What does a CMA include? First the seller's home is analyzed to determine
its condition and the features and amenities it offers. Its size,
location, age, and condition are all taken into account.
Next, the "market" is analyzed . The market includes homes already sold,
those currently for sale, and those which were offered but did not sell
(the expired listings). Each plays as role in the final determination of
price on the seller's home.
Homes recently sold carry the most weight, indicating the price buyers
have already been willing to pay. Homes currently offered for sale are
considered the competition, against which prospective buyers will be
measuring value. Having not yet sold at their asking prices, they carry
less weight in the final price determination. Homes on which the listing
expired without a sale are a strong indication of prices buyers are not
willing to pay.
Homes priced above the market are likely to languish without a sale. Those
priced within the range established by an accurate market analysis are
quick to attract serious buyers.
