The Pricing Strategy

In developing a pricing strategy with our clients, we look at current market conditions and the factors specific to a home, i.e., market segments, neighborhood, condition, etc. In listing a property for sale, we advise that sellers keep in mind that on the open market demand determines price and the buyers routinely comparison shop.

As professional REALTORS® we prepare a competitive market analysis (CMA) for our Sellers in order to give them an indication of what today's buyers are willing to pay for their home. The CMA compares the market activity of similar homes in the neighborhood. Those that have recently sold represent what buyers are willing to pay. Homes currently listed for sale represent the current competition, and what those sellers are hoping to obtain. And those that have expired can be considered overpriced, in the buyers' eyes, or poorly marketed. Based on our review of the CMA we then provide Sellers with our estimate of a "range of value" for their property.

The question of where to set the listing price within that range is an important one ...
• Should you as the seller price your property where comparable sales are occurring and hold firm if lower offers are made?
• Shoud you start high, expecting to negotiate or reduce price after the market has been tested?

These are the kinds of questions we talk through with you. A lot depends on things such as ...
• What is the timetable for bringing about a sale?
• Are there very many similar comparable properties currently on the market?

We may suggest you actually drive by or view competing properties and/or buildings to get a better understanding of how we arrived at our recommendation for a price range. Gathering information on the special features of your home is most helpful as we go about the tasks of reviewing value and, thereafter, marketing and showing your property.

Selling Your Home