Doing a CMA, comparable market analysis, is the only way to properly price your home for sale. Use current homes for sale in the area, homes recently sold, and any special features to ask the best price.
Charleston House Buyers: A home sale, whether being done by a professional or if you are selling it yourself, should always include a CMA. That is, Comparable Market Analysis, which means that your home price will be set according to what others in the area have sold for, are for sale now, and depending on the condition and features of the home.
Otherwise known as a ‘comp’ this is the best way to set the appropriate asking price that will attract buyers and get your house sold. One of the worst things a home seller can do is to incorrectly price the house he is selling. Put a price on it that is too high for the current market and it’s obvious why the house wouldn’t sell in that case. There are too many other homes for sale that have great prices attached and anxious sellers. There aren’t as many buyers as there are sellers these days, giving buyers a wide number of choices.
A price that’s too low for the market may have the same effect. Buyers may be very wary of your house if it’s too cheap. They will reason that there may be something wrong with it. Why would it be so cheap compared to others with similar features and size in the same neighborhood? It’s counterintuitive, perhaps, but psychology is quite important in sales no matter what you are selling. Ask any professional sales rep and they will tell you the same thing whether they sell widgets, homes, or cars.
Use the internet to find lots of comparable listings in your area. Stay within a natural boundary, such as a river, a highway, or subdivision. Try to find out what similar houses to yours have sold for in the last 3 to 6 months. Then check to see what the asking prices are for similar houses in the area that are on the market now.
Criteria you will use to do a CMA for your house include size, lot type and size, bedrooms, baths, garage and outbuildings, and other features. If you live in a very hot climate a swimming pool or lake access will be important. If you live in a cold environment a paved and maintained road will be a significant selling feature. Know your area and what buyers will be looking for and put a great price on your house. The ideal price will be slightly lower than the current market value.