Price

YOUR FORMULA FOR A FACT-BASED LIST PRICE

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MACRO TO MICRO: PRICING YOUR HOME FOR A SUCCESSFUL SALE

1. STATISTICAL ANALYSIS – Because Chicago is broad and can change from street to street, I take the time to peer into the specific direction of sales within your property’s micro-market. For example, if your property is in Roscoe Village, I dig for the recent and long range direction of the market within the relevant, surrounding blocks—not all over the whole of Lakeview. After all, how does the sale in a lakeshore high-rise influence the price of your second floor graystone condo? I study the direction of your micro-market as it relates to average and median sales price, market time, month’s supply, number of properties currently closed or under contract, etc, etc.

2. COMPARABLE MARKET ANALYSIS (CMA) – This is a comparison of the prices of similar houses in the same general geographic area. A CMA is used to help determine the value of a property. It focuses on recently sold properties plus the current market competition. This study allows us to ask: How do we want to position this property so that it competes with everything else on the market? How are buyers going to compare your property with the others that they tour?

  • A CMA of closed properties determines market history and puts into focus what a buyer is willing to spend in today’s market.
  • A CMA of active properties determines your competition.

3. PRICE TESTING ON THE MLS – A skill only a few agents understand, I have the ability to test the price of your home on the MLS.

  • Using your property’s specific qualities, price testing your property reveals the price point and marketing parameters that will present the largest pool of buyers.
  • It also allows us to identify and target agents who represent buyers just outside of your price point, but who might find interest in your unit.
  • Finally, it allows sellers to have concrete facts about their property’s competitive market.

 

INTELLIGENT PRICING AND TIMING

 

Screen Shot 2015-07-20 at 2.27.21 PMPricing a home for sale is as much art as science, but there are a few truisms that never change.

• Fair market value attracts buyers, overpricing never does.

• The first two weeks of marketing are crucial.
• The market never lies, but it can change its mind.Fair market value is what a willing buyer and a willing seller agree by contract is a fair price for the home. A wide range of reasons can impact values but the two largest are location and condition. Generally, fair market value can be determined by comparables (other similar homes that have sold or are currently for sale in the same area). Sellers often view their homes as special, which tempts them to put a higher price on the home, believing they can always come down later, but that’s a serious mistake. Overpricing prevents the very buyers who are eligible to buy the home from ever seeing it. Most buyers shop by price range and look for the best value in that range.