Pricing Treasure Island Homes or St Pete Beach Homes
What would an upward or lower price adjustment look like based on the current market CMA? Well, let’s look at an example. Let’s say that the CMA of previously and recently sold similar homes shows that the listing price should be around $235,000. However, those sales were between one month and three months old. Our current market listing CMA shows that similar homes in the neighborhood are listed at $249,000 or thereabouts. We and you may decide that the market is improving and justifies raising the listing price of your home to $245,000 so that it’s still competitive but a better deal for you. Of course, this can work the other way as well.
A proper list price that reflects current and realistic market conditions is critical to getting your Treasure Island, St Petersburg, or St Pete Beach home or condo sold quickly. We don’t want you to under–price, but it’s worse to over–price in any market. Buyers discount value by Days On Market. The longer a home stays on the market, the greater they’ll discount their offers. So, a realistic list price is how we make sure your property sells without languishing on the market.
How do we come up with a suggested list price that reflects your home’s competitive position? It’s a combination of services and experience, and we’re going to be very careful and detailed in our analysis and market evaluations to make sure that you don’t leave money on the table or sit around wondering why you aren’t getting offers.
Our evaluation of how your property compares to the current competition is the first step. Then we may suggest some worthwhile corrections you can make to improve that position. Once we know what your home will look like when listed, we’ll go into our thorough Comparative Market Analysis (CMA) process.
CMA of Sold Properties
First we select comparable properties out of those sold recently and in the neighborhood or nearby. These “comparables” or “comps” are selected based on similarity in features, location and characteristics with your home. They must have been sold as recently as possible so the sold prices are of maximum value.
We then do a go through a detailed “adjustment” process to adjust their sold prices for any differences with your property. If a home has one more bedroom than yours, we would adjust that property’s sold price downward for the value of one bedroom to make the comparison “apples to apples.” We make adjustments for condition, location, amenities (like a pool, a dock, a boatlift, your water view) garages, bathrooms and other major features to bring our comps to closely compare with your home. Then we use those sold prices to arrive at a preliminary listing price for your home.
We say “preliminary” because we have two more CMA steps.
CMA of Recently Expired and Withdrawn Listings
We look a little deeper, to compare your property to other homes which have recently been on the market but failed to sell. We don't want your home to fail to sell -- it's such an expensive waste of time. If you make the same mistake as these expired sellers, you will be sitting around with no buyers or very few buyers looking at your home, no offers, or what you might consider "lowball" offers because the offer price is so low relative to your over-priced expectations, and you won't be moving forward with this sale at all.
CMA of Current Listings
Then, we look at those homes and condos actively for sale. These properties will become your competition. We go through the same adjustment process, and we come up with another, price suggestion for your home. This facet of the CMA gives us more up–to–date information about the market which could cause us to lower or raise our preliminary list price to adjust to the current market. Using these CMA results and our experienced analysis of your home’s position in the marketplace, we can set a listing price that will get the job done.