When you decide to sell a home, the real estate agent you speak with will often refer to comparable sales when discussing the value of your house.
While common sense might lead you to understand that comparable sales are homes for sale or those that have sold which are similar to yours, there is a deeper level of comprehension that even most real estate agents do not understand.
It is this understanding that will help you correctly price your home to get the highest price possible in the shortest period of time.
Comparable Sales And Listings
The only homes that you should consider “comparable” to yours are those that buyers would consider during their selection process. So if your home was listed for sale, what homes would real, active, homebuyers be considering to purchase when also looking at yours?
Also, which homes that have recently sold would have been competing for these buyers. This will give you an idea of what recent values have been recorded.
Most real estate agents can explain what comparable sales are, but the “why” they are so critical to you is not something that I have seen or heard very often. Understanding why they need to be closely scrutinized is the difference between getting top dollar fast versus languishing on the market for months or even years!
Comparable Sales From The Buyer’s Perspective
Comparable sales and listings comprise the field of properties that buyers will use to determine the relative value of your home. If you get nothing else from this short article, I hope you take away the concept that value is relative.
A home is worth only what a buyer must pay to replace it, on the day the buyer is ready to buy. So when you prepare to sell your home and you wonder what it is worth, you must ask yourself “what home would somebody buy if they cannot buy mine.”
And this is so critical, because your asking price is going to throw your house into a “lineup” on the internet, and the homes that show immediately before and immediately after your home determine whether or not your house belongs in the lineup.
By correctly gauging the comparable sales and listings, your home will look the best in the lineup, thus buyers will want to come and see your home. But if you price your home too high, people will not be interested in your home. It really is that simple.
Gone are the days when you build in a margin for negotiation when pricing your home, as this technique reduces the number of people who will find value in your home.
This concept is so important that we actually have created a demonstration that is available at our office, and it shows how comparable sales will guide you to the absolute best asking price for your home.
If you would like to see this demonstration on the importance of comparable sales, just drop me a note and we will get you in a soon as you are ready.
