The critical mistake sellers make when looking at “comparables”
When pricing your home we will take the approach of a professional appraiser. Although we as real estate agents are not licensed to complete an appraisal we are however able to assess the value of a home through a “comparable market analysis”.
Basically this means that we will determine the potential asking price for your home based on area comparable homes or comps. This is where sellers will make the critical mistake of pricing their home because many homeowners will base what they think their home is worth on what is currently for sale on the market.
Although we will look at these to get an idea of what other homes in the area are listed for, we will never base your home’s asking price on for sale comps only.
Some agents will overprice a home in hopes of getting the listing because they convince the seller that it’s worth the high price; it’s been my experience that this is just pipe dream pricing. Like an appraiser, the only comps that can and should be used are closed sales comps because they show the reality of current market conditions.
Using homes sold within the last six months and within a five mile radius of your home will give you a real bottom line, on what buyers were willing to pay and what sellers were willing to sell for.
Of course we will take other things into consideration like how well maintained and updated your home is and what type of amenities it offers to determine an asking price that takes a valuation approach and not just using comparables.