When pricing your home in the Smithville, MO area you want to use the best possible strategy.
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It’s all about supply and demand, so you want to pick the absolute best strategy. Here are a few details about how a realtor decides on the right price using comparable homes:
- Information gathering
- Recent comparable sold properties
- Summarizing data
Gathering all the data
A realtor should know all the characteristics of the subject property. At the very minimum, they must get the data points on:
- Number of bedrooms/bathrooms
- Total square footage
- Interior finishes
- Recent renovations
- Additional features
Next, the realtor compares this information with homes recently sold or currently for sale. Why is this information important when pricing a home? It helps to analyze the features of other homes and decide on the right timing. Also, the data help you keep tabs on the ever-changing market value. This is what the realtor will use to justify the asking price. Since the real estate market fluctuates quite often, comparable homes are an accurate indicator of what you should expect. The overall quality of the neighborhood will also be determined by available amenities. Of course, any renovations or alterations will affect the price of the subject property.
Examining the most recent comparable homes
The realtor finds several properties that match your home, going back one year. The idea is to get the most recent information to determine the real market value. If the pickings are slim, the window of time can go back a bit farther. It’s easier when the property is in a major metropolitan area. For standalone properties in a smaller community, the realtor should find homes that meet the criteria. What happens if there is no exact match? If the subject property measures 1200 square feet, a search can include homes between 1000-1500 square feet.
The next step is to focus on similar properties that are currently listed on the market. How is the listing going? How long have they been on the market? The realtor collects important characteristics. If the price of the subject property is too low/too high, then they should make the necessary adjustments. The realtor should know what is happening in the neighborhood. For example, if there’s major road construction that leads to a property, the price could change. This is also an opportunity to compare factors like:
- Additions and upgrades
- Exterior landscaping
- Recent repairs
- Nearby amenities like fitness facilities, shopping centers, etc.
Putting all the information on comparative homes together
With all the information on similar properties, the realtor can know what the market is offering and how it can affect the sale price of your property. Based on the data at hand, the numbers are ready for analysis to help sell your home. The last step is to calculate the price of the square footage of comparable homes. The realtor should come up with a rough estimate of your home’s value with regard to features, size, and amenities of similar homes.
Since no two properties are identical, it’s important to compare the price of your home to that of the neighborhood. A realtor can help you prepare a comparative market analysis for listing purposes.