Selling Your Alexandria VA Home – How A Market Analysis Helps You
We just entered the last month of the calendar year and this is usually the time where many people start to develop a mental goal for surviving the holidays and listing their home for sale after the first of the new year. The first step is to determine the current market value of your home by obtaining a comparative market analysis, or CMA.
The market analysis consists of three main parts:
- Current active listings – This tells you who your immediate competition is right now. If you were to list your home, odds are that the buyer would look at all of the active homes in the same neighborhood. In my fifteen years of selling real estate, I’ve learned that it’s human nature for every homeowner to automatically assume that their house is worth more than their neighbor’s. When looking at active homes for sale, the question to ask yourself is, “If I were in the market to buy a home in my neighborhood, what would I likely bid on my house?”
- Current pending sales – Looking at the pending sales gives you an idea of what the buyers are ‘biting at’. If homes were on the market at the same time, why did a buyer choose one house over another? How long did the pending sales stay on the market before they went under contract? Did they have any specific improvements or upgrades? When looking at pending sales in your neighborhood, the question to ask yourself is, “If I were in the market to buy a home in my neighborhood, what would I likely bid on my house?”
- Recently sold homes – The sold homes will include other information such as the original asking price, how many price reductions, the final sold price, how much of a subsidy was provided (buyer paid closing costs), and days on the market. Homes that saw many price reductions meant the seller over-shot the list price. When looking at the recently sold homes in your neighborhood, the question to ask yourself is, “If I were in the market to buy a home in my neighborhood, what would I likely bid on my house?”
Regardless of the market conditions, most buyers want a ‘good deal’ and many are not willing to pay more than what the last home sold for. Alexandria VA home buyers will already have this exact same information by doing their own research, or when using their exclusive buyer agent. When it’s time to write the offer, the buyer is faced with the question, “Based on this information about the homes that have recently sold in the neighborhood, what am I going to offer?”
Use the information from the comparative market analysis to price your home competitively. Doing so will minimize your days on the market will increase your chances for multiple offers.
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