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San Diego real estate library
Real Estate – Benefits of a Market Analysis
When a real estate agent estimates a selling price for your
home, most people believe the price is too low. But, a good real
estate agent performs a Market Analysis of your neighborhood and
surrounding area. Several different factors go into this
analysis and it is important to hire an agent rather than going
at a home sale blind.
The market analysis will look at your home and the other
comparable homes in the neighborhood. This means it will only
compare properties which have the same features as yours. If you
have three bedrooms then the analysis will look at other three
bedroom homes. The market analysis will evaluate homes which
have sold in the past six months. It will also look at homes
which were listed and did not sell. The last thing the analysis
will include are homes currently on the market.
By getting an average of the different prices, the real estate
agent can give you a pretty good estimate on what your home
should sell for in the present market. You may feel the price is
too low. Many sellers feel this way. However, the market
analysis is extremely accurate.
The market analysis will show you the listing prices of the
houses in your neighborhood for the last six months to a year.
You will then be able to see if they sold for that price. It may
shock you to learn many of them did not sell for the asking
price. If they did, then stipulations were probably made by the
seller, buyer, or both. These agreements could be things like
the seller agreeing to pay closing costs or points. Either way,
the asking price the seller was hoping for was lower.
Be careful of the real estate agent who does not do a market
analysis. Steer clear from the ones who ask you what you want to
sell your house for. You want a professional who knows how to
market your home and will get the best price for it. In order to
do this he or she must review the market to establish what is
selling and what is not moving at all. There is going to be a
price range your home will fit into. This is what a good real
estate agent will explain to you. He or she will usually list
your home for the higher end of the price bracket.
By setting the price a little higher, not a lot, you have a
negotiating chip. In today’s buyer’s market a buyer may ask you
to pay the points or closing costs or both. You may be asked to
supply the down payment. When the buyer does this, sometimes the
house actually can sell for more than the asking price. It is
one of the ways buyers who are a credit risk can afford to buy a
home.
You should never ask more than the market will bare when setting
the price for your home. You need to carefully consider all the
choices when determining your price. Things like how updated the
kitchen is or how big the yard is can have a lot to do with what
your price will be. There are other things you can do to get top
dollar for your house.
Curb appeal is one of the most important things in selling a
home. If a buyer drives by, you want him or her to notice your
house. It must look neat and orderly. If it appears run down and
in need of repair, people will just drive by. It may be hidden
by trees and shrubs. Cut them down and let the neighborhood see
how nice your house is.
A good real estate agent will be able to list your home at a
reasonable price. He or she will be able to tell you what must
be done to get the best possible price for your home. They are
the professional. If you listen to them, your house will sell.
San Diego real estate library |
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