Pricing a property correctly can cause much consternation between salespeople and homeowners. Most homeowners who are considering the sale of a home have made themselves aware of their competition by visiting open houses and collecting “for sale” flyers. However they may not have the latest information on what has actually sold, since this data is not as readily available. Since homes listed for sale tend to represent the high end of the market, comparisons may be made based upon incorrect information.

Determining the Proper Price

So many times I have heard that the property down the street sold for “x” amount, therefore my house should be worth “y”. Many times the owner is comparing only price for price and has failed to factor in the differences in square footage, lot size, beds/baths and amenities the comparable home featured.

To simplify the comparison, I developed the following spreadsheet and chart to visually display the differences and better explain why one home may be comparable in bed/bath’s and square footage, but may sell for a much different price. The following homes have sold within the past 70 days in Northeast Pasadena:

I have represented each house that has sold with a numbered icon to display the value. When a home moves up the price scale, it will also move to the right indicating more features and amenities. This is effective because you are looking at houses in the same neighborhood so there is less variance based upon location and also when you are comparing it to properties within 10% of a square footage variance.

Value = Price + Perceived Benefit

Today’s home buyer is very discerning. They know they do not have much competition so they can afford to be patient and hope to get the best value for their dollar. After looking at 8-10 houses during the course of an afternoon, you begin to get a good idea of how homes are priced. Selling your home is similar to a job interview, price it correctly and you have made a great first impression and may very well get the best home buyer candidate. If your price is deemed uncompetitive, you may find it sitting on the market. Since you read up2daterealestate, you know the longer it sits, the more you loose.

If you’re considering the sale of your property and would like a market analysis, give me a call or send me an email. I will be glad to provide you with a detailed analysis of your market area!