It takes a lot more to set a selling price for your Sacramento home than just writing down what you think it’s worth. There is a lot that goes into finding the right price, one that will help you sell reasonably easily while having the most cash possible at the same time. The method is both art and science, but some fairly common methods, pricing formulas, and variables that are used and taken into account by agents are available. So let’s see how Sacramento real estate agents assess your home’s listing price.
Overview of Listing-Price Determination
When it comes to assessing listing prices, the key points to bear in mind are:
- A comparison between your home and similar homes nearby and recently sold
- The current competition in the local market
- The different prices from different agents
It’s important to understand, then, how Sacramento agents usually get your home at a price.
Comparative market analysis is the main pricing instrument used by agents (CMA). The results of the CMA will outline the recommended listing price and help you to understand the justification for that specific price and provide the basis for a marketing strategy.
CMAs are now lengthy and complex, having been created by the use of specialized software, formerly fairly simple write-ups of property comparisons. They typically “Showing average and median selling prices, price changes, local minimum and maximum selling prices, market days, individual closed sales, listed but not sold homes, best time to sell, overpricing impact, etc.”
Still, in deciding the price, there are other factors your agent will take into account. And that’s why proper pricing, as well as plugging figures into the CMA app, relies on agent expertise and resourcefulness. By calling a Sacramento agent at (916) 507-2502, you will find out more about what goes into it.
The Four Factors That Influence Listing Price
There are a variety of variables that can influence how your home should be priced. But the ones with the most impact are the comps (the results of the CMA), venue, condition, and updates.
COMPS/CMA RESULTS
This is a contrast, in the simplest words, of the prices of recently sold houses that are very similar to yours and close to yours. It also involves the existing rivalry, which is equivalent to homes currently for sale in the region and their time on the market.
It must take into account homes that are very close to yours in terms of condition, age, amenities, number of rooms, square footage, and so on, in order for the CMA to be an effective instrument for evaluating the selling price. Such homes must also be nearby, preferably within the same community. And they have recently had to sell, preferably in the last six months at the most.
After running the comps your Sacramento agent will have a fairly good idea of what the listing price should be. But there remain other things to factor in.
THE LOCATION
If your home is situated near to essential amenities, more than very similar homes that are not as close to those amenities would likely be sold. It will make it more attractive for buyers to be close to items like good colleges, entertainment, and dining, and your agent will use that in deciding the listing price.
Other location-related variables include whether your home is on a busy street or a quiet cul-de-sac, as well as the area’s crime rates and the economic outlook of the location. When coming up with a listing price, your Sacramento agent will look at all of these.
THE HOME’S CONDITION
Since no two houses are exactly alike, the quality of your home will play a role in pricing as well. You can set a greater list/sale price if your home is in better condition than the equivalent homes used in the CMA.
In fact, buyers are known to pay up to $15,000 more for a well-maintained and excellent house. So you can usually list your home at a higher price with renovations and refurbishments, a decent roof, and a top-notch HVAC system. Contact your agent to find out how to plan your home in this sense.
HOME UPDATES
Similarly, when deciding the listing price, your Sacramento agent will also take any changes into account. Updates, whether maintenance, improvements or a big redesign, would certainly have a positive effect on the value of your Sacramento house.
Not all updates, sadly, will allow you to list your Sacramento home for much, if any, more. At selling time, some changes simply provide a better return on investment. So, before listing, if you are considering any changes or improvements, be sure to first consult your Sacramento representative.
Why You Need a Good Agent to Determine Listing Price
You can definitely decide a listing price on your own, but should you? Know, the best marketing strategy is also called pricing correct, the one that can get you a fast deal at a decent price. And it typically takes a lot of practice, skill, and intuition to decide the right listing price. With the assistance of a good Sacramento representative, if you want to get your listing price right, contact us at (916) 507-2502 today.