A comparative market analysis is an indicator of what today’s buyers are willing to pay for a home. It plays an important role in determining property value. It compares the market activity of homes similar to yours in your neighbourhood. Those that have recently sold represent what buyers are willing to pay. The homes currently listed for sale represent the price sellers hope to obtain. And those listings that have expired were generally overpriced or poorly marketed.

We will prepare a comparative market analysis for your home based on the most current market information. Together, we will establish the proper list price for your home.

Factors That Influence Overpricing

1. Extensive renovations / hidden costs
2. Desire to purchase in a higher-priced area
3. Original cost of home was too high
4. Lack of real market information
5. Building in “bargaining room”
6. Perceived emotional value

The Result of Overpricing

Many sellers believe that if they price their home high initially, they can lower it later.

Often, when a home is priced too high, it experiences little activity. Gradually the price will come down to market value, but by that time it’s been for sale too long and some buyers will be wary and reject the property.

On occasion, the price is dropped below the market value because the seller runs out of time. The property sells for less than it’s worth.

Missing the Right Buyer

You may think that interested buyers “can always make an offer,” but if the home is overpriced, potential buyers looking in a lower price range will never see it.

Those who can afford a home at your asking price will soon recognize that they can get a better value elsewhere.

The Importance of Early Activity

As soon as a home comes on the market, there is a flurry of activity surrounding it. This is a crucial time when Real Estate Professionals and potential buyers sit up and take notice.

If the home is overpriced, it doesn’t take long for interested parties to lose interest. By the time the price drops, a majority of buyers are lost.

Pricing Your Property

The single most important decision you will make with your Royal LePage Real Estate Professional is determining the right asking price for your property.

Once you’ve achieved a realistic sales price, you can count on your property being professionally marketed and promoted to bring more buyers to your door. You can also expect to sell your home for the best possible price in the lease amount of time.

The Benefits of Pricing Right

1. Your property sells faster, because it is exposed to more qualified buyers.
2. Your home doesn’t lose its “marketability.”
3. The closer to market value, the higher the offers.
4. A well-priced property can generate competing offers.
5. Real Estate Professionals will be enthusiastic about presenting your property to buyers.

Determining The Value Of Your Home

Before you compare your home to similar properties and establish a competitive list price, the following points should be considered

1. Location
2. Size
3. Style
4. Condition
5. Community Amenities
6. Buyer Supply
7. Financing Options

Getting to Know Your Market

Visit the BC Assessment website for information on how properties are valued for tax purposes.

Contact us for more information on how a real estate agent goes about determining the present market value of your home.