Your best friend has an opinion. Your neighbor has an opinion. It might even be that your mother has an opinion…but…the real opinion you need is not an opinion at all. It’s the facts mam and only the facts!
BEFORE you go signing on that line, make sure your REALTOR® knows how to generate the correct numbers and is willing to share them with you so you can make the wisest of decisions.
Twenty years ago (and yet even as current as this year), all a new real estate licensee learned in their required pre-licensing class, no matter the state, is something called a CMA. That’s an acronym for Competitive or Comparative Market Analysis. A CMA is intended to be a sufficiently detailed list of several active and several sold properties that are most similar to yours, chosen by the REALTOR® to help advise you on the current market conditions and how it affects the value of your home.
What that CMA often becomes though is an incomplete (sometimes biased) list of what your REALTOR® chooses for you to see, and very possibly leaves out any properties that are not similar in a traditional sense. Your agent can choose at their own whim to leave out Foreclosure or Short Sales properties, unusually designed homes, homes with more or less land or any other factors they feel may make their list of comparable properties unsuitable.
So…the dilemma for you is how do you get the most accurate, unbiased information from which to make a wise and prudent decision that will best position you for the current market and allow you to sell at a fair market price in a timeframe that is reasonable for your current market conditions? Just the facts mam, because the numbers combined with the facts never lie!
Secret #1 – Ask your REALTOR® to do an Absorption Rate Positioning report for your property.
A CMA alone is no longer sufficient for any wise home owner trying to make that important decision about what is the accurate price range to list their home. A much deeper and more detailed ARP will give you the facts you are seeking and can be prepared to include many local market details. A REALTOR® can do an ARP report that includes the entire market, but then can also do a report that is very narrow and focused to include a much lesser number of properties are most like yours in price, or size, or location or many other important details that would help you position your home for the quickest sale in the most accurate price range. Many local REALTOR® Associations (but not all) have even tapped into a program offered by the National Association of REALTORS® called RPR (Realtors Property Resource) that makes running Absorption Rate Positioning reports easy and can be provided with little effort, no deep math skills and no brain damage. What that means for you is a brand-new REALTOR® with just a few months experience can be just as skilled at advising you on a proper price range for your home as that local marketing expert of 40 years.
Secret #2 – Ask your REALTOR® to do an Odds of Selling report for you.
I’d wager that every time you purchase a big Powerball ticket you also know that the odds of you winning are astronomical. Somebody wins, but odds are it won’t be you. Do you really want to price your home with unrealistic odds…of course not…and yet some people do because they just don’t know the facts.
Math doesn’t lie, so combining that Absorption Rate Positioning report with accurate Odds of Selling numbers can assist you in knowing and understanding the reality of supply and demand for your home in your market. Real estate sales are local and HGTV cannot tell you how much and how quickly your home will sell no matter how many hours you choose to watch it. Who can tell you…your local REALTOR® that has been trained in how to do an Odds of Selling report. The formula is not very difficult to learn, so when your agent provides you the OS numbers and you are wise enough to accept them, you’ll move your home to the front of the line and have a much better change of getting to where you want to be next, and on time.
Secret #3 – Looking at your home through “Buyers Eyes” makes all the difference.
You may not like it, but the buyers in your market determine what homes sell for. Not you, not your friends, not your father and not even that expert appraiser or your trusted REALTOR®. Buyers and buyers alone determine value and it’s based on many factors which always include condition and sometimes includes amenities. To a buyer, those superior nails you put in the roof may not be that superior because to them it’s just a roof. To a buyer, all that money you spent on upgrades like carpet and flooring may not be a benefit their willing to pay more for, because they don’t like the color of the carpet or that cork or stone flooring you put in the kitchen isn’t really a big deal to them.
If you really want to understand the market and what you’re up against, have your REALTOR® take you and show you competing properties (or go yourself if they won’t take you). You may be pleased with what you see or you may not, but a sure knowledge is always better than just guessing when you’re positioning your home to compete in the market. Sure, it will take time, but it will always be worth your time to see what the competition is offering and how the condition of those other homes compares to your own home.
Selling a home is not easy work. If you prepare and position yourself in a wise and knowledgeable way, you win…nearly every time. You can bank on it so, get to work, I’m rooting for your success!!