I often get asked, “John, how are you able to price a home so effectively?” It’s a great question, and I’m excited to share some insights with you. Most real estate agents look at the most recent closed transactions and base their decisions on what the most recent homes have sold for.
These comparable homes, or “comps,” are essential indicators for pricing a home that might be of similar style, size, condition, and age. We also consider factors such as school districts, proximity to the subject property, and other relevant details. However, I go beyond just looking at comps. Here are a couple of additional steps I take that many agents might overlook:
Active Listings:
Understand Your Competition: Active listings show who you’re competing against. Are your neighbors pricing their properties too high? Are they pricing them too low? How long have these properties been on the market? Evaluate Property Condition: Compare the condition of your property to those currently listed. Is your property in better shape?
Pending Transactions:
Market Trends: Pending transactions are a strong indicator of where the market is heading. Are there many properties under contract, or are there very few? This can signal whether the market is shifting.
Market Stability:
Even if the overall market seems stable, pending transactions can reveal more about the current trends. They help us understand if the market is still favorable for sellers or if buyers are gaining an advantage. By considering both active listings and pending transactions, in addition to comps, I can provide a more accurate and competitive pricing strategy for your home.
Feel free to reach out if you have any questions or need assistance with your real estate needs. I’m here to help!
