As you prepare to list your home, you’ll need to determine how to set your asking price. You may come across the term “comparative market analysis,” which is used as a tool for gauging the perceived value of your home. However, as a seller, you should think of that informal appraisal more as a competitive market analysis.
Why? Because comparisons can be very subjective, and while buyers may “compare” other homes, sellers may find themselves ”competing” against other properties. No matter how unique you believe your home to be, it doesn’t really matter how it compares to others until you have priced it to compete successfully against them.
In today’s real estate market, past sales may not necessarily reflect the present reality. Similar listings compete by having a correct price for the perceived value, with price and value representing different sides of the same coin.
When you speak with a real estate agent, they will explain how your home may challenge the competition with savvy marketing, spotless presentation, and correct pricing. That is how to win the interest of other agents and buyers!
Remember, it is the prospective buyers who will be making the comparisons. It’s your responsibility as a seller to compete for their best offer in a challenging marketplace. Ask for your agent’s advice and then put that advice into action.