Many home owners do not have a full understanding of how the asking price of a homes should be established. They either base their decision on what the need to get out of the sale in order to buy another home, or they base it on what they paid and adjust for inflation. Another mistake is that the real estate agent sets the asking price. The truth is that the buyers are the ones who establish what your home is worth in today’s market.
When an agent comes to your home and shows you a competitive market analysis, it is made up of homes that have recently sold, homes currently listed and homes that were listed but did not sell. What these numbers represent are what the buyers were willing to pay for a home similar to yours (the solds), and what the buyers were not willing to pay (the expired listings). I also gives you a gauge as to what your competition is (the current listings).
It is important to take these numbers into account when establishing the price of your homes.
…ask Madeleine for more information on pricing your home by commenting on this blog.