When people think about selling their home they often wonder, “How much should I sell it for?” The number doesn’t just appear out of thin air. The number often comes from having a real estate agent perform a market analysis in order to arrive at a number that will help the property sell quickly and for a good price so that both the buyer and seller are happy.
A market analysis involves a realtor taking a look at what prices comparable homes sold for in the neighborhood. So, for example, say there’s a similar home a few doors down from yours that was built around the same time yours was, and features a similar layout, including 3 bedrooms, 3 baths, and a backyard deck and pool. If it sold for $150,000 a month ago, then your realtor would likely say your home would sell “in that ballpark” too. Or perhaps there were five homes sold in a half mile radius of your home within the past year, with an average sale price of $150,000– that would inform your agent as to “what the market will bear” locally.
If you were to ask a real estate agent how price is determined, they’d generally reply, “Price is dependent on what others are willing to pay for a particular home/property.” It’s no wonder, then, that homes on the waterfront go for much more than homes near highways and electric lines.
A market analysis involves statistics such that an informed decision can be made on how to price a property accordingly so it will likely sell in a timely manner.
Interestingly, some people will hear the number an agent gives them and they will not agree to it. Oftentimes, there’s an emotional response involved, such as, “I put all my sweat and tears into building and decorating this house. I won’t settle for anything less than a million.” The realtor may say, “The market analysis suggests this house would sell for somewhere between $750,000 and $850,000.” A seller is free to set the price they “want,” though they may find few people will “bite,” because the price is set too high. That’s why having a realtor do a market analysis is probably the best bet toward setting a fair price whereas the home/property will sell, and sell quickly.
Have you been wondering what your house might be worth these days? Have Donna Littlefield perform a FREE market analysis for you; call 716-578-1788 to arrange that today!