I know not everyone is a fan of statistics, but sometimes statistics in a graph can paint a more convincing picture than anything I could say.
When I list houses in Shreveport, one of the tools in my Comprehensive Marketing System is a comparative market analysis (CMA) of similar homes in your neighborhood that have recently sold. This is a very important piece of information as it gives you insight into home prices that resulted in a sale. This market analysis also shows how many days those houses stayed on the market before they sold and how many price reductions there were.
Some sellers don’t want to know the cold hard facts, because they have already come up with a price on their own. Most of the time this price is highly subjective. But a graph emphasizes what the numbers by themselves sometimes cannot convey.
Take a look at the graph below to see what I mean.
This graph makes it easy to see that the higher the asking price is above market value, the longer a house will sit on the market.
Let’s look at an example.
Every home similar to yours is your competition. There are many things that go into whether a home sells, but the most important is correct pricing for the market. Please remember that the seller doesn’t set fair market value. The buyer doesn’t set fair market value. Fair market value is the price the buyer and seller come to agreement on.
As the graph above shows, if you want to sell your house quickly and for the most money, you must price it no more than 3.3% above what the CMA shows to be the fair market value for homes similar to yours.
If the CMA shows fair market value to be $200,000 and you insist that your home should be priced at $225,000, your home could sit there for months until you bring the price down to market value.
If you price it at $205,000 there’s no guarantee that it will sell within a month, but chances are greater that it will. Unless you’re very lucky, your price of $225,000 will eventually come down to about $205,000. In the meantime, you’ve made many more mortgage payments, etc. If you were in a situation where you moved and bought another house, that could get really expensive.
Is it worth it? Only you as the homeowner knows, but if you want to sell your home fast, correct pricing is the most important part of your agent’s marketing plan.
You can request a free valuation of your Shreveport or Bossier City area home, and I’ll be happy to provide one for you. Give me a call!