I will be glad to provide you with a Free
Competitive Market Analysis of the value and a Recommended Sales Price of your
property. This analysis will include four areas. ACTIVE, PENDING, SOLD,
PENDING are the properties that have accepted offers. A
willing buyer and a willing seller have agreed to price and terms. If you are currently
listed, these are the properties that buyers chose over your property due to price, terms,
condition etc. The price listed is the asking price at the time of the agreement,
not the price and terms they agreed to. Most of the time the agreed price and terms will
not be disclosed until the escrow has closed. This protects the seller in the event the
property does not close and the seller has to start marketing again. The sellers current
asking price is not damaged is they previously accepted a lower price.
SOLD are properties which have closed escrow, normally
within the last 6 months. Six months is the generally agreed to term within which to look
at the past. Appraisers generally do not look at properties that have closed prior when
making their assessment of the current market appraisal of price. If you price your
home too much above these prices and you succeed in getting an offer at that price, the
property may not appraise and the buyer will not be approved for his loan. You will have
lost valuable marketing time etc.
EXPIRED are marketing or pricing FAILURES. These properties have failed to generate a satisfactory offer for the seller due to a poor marketing and promotion program or because of the price. In price are included condition, location, accessibility and several other features because price cures all of the above.
A common misconception is that the agent sets the price. This is not true, the agent shows the seller what the market condition is and usually recommends a price, the seller ultimately decides where to price the property. At that point the agent has to decide if the price is reasonable and whether to take on the job of marketing of the property.
Sellers must be aware of the parameters used in the Market Analysis. Make sure the comparable properties accurately represent the subject property. Some agents will try to "buy the listing" by telling and sometimes showing the seller they can get a higher price that anyone else can. Then, shortly after the contract is signed, they start beating the seller down in price until they reach a salable price. Generally the price the other agents suggested. Be wary of anyone who is significantly higher that the other agents. Look closely at the "proof"
There are many factors that determine the value of your property and many factors that have a bearing on the seller but do not determine the sales price. Please see the page "What your home is/is not worth" for more interesting information on "value vs. needs and wants".