When you decide to sell your home one of the steps your real estate agent will go over with you is where you want to price your home. When you are interviewing real estate agents this is a critical step to help you decide, not only what to set the price at but, which agent you should choose. This can be a make or break issue when it comes to selling your home. Listing your home for the wrong price can have a negative impact on not only your selling at all but attracting the right buyers to make an offer.
While interviewing real estate agents, they will go over a CMA or Comparative Market Analysis, showing you market conditions, comparable homes and will make a recommendation on a listing price, that is right for your home. While the ultimate listing price is completely up to you, this information, if done by a qualified competent real estate agent, is suggested because of several factors and is what the market is expected to bear for your home.
You may find that the prices of some agents are not what you expected, they could be significantly lower than what you had in mind. These prices should be supported with market data, of not only sold homes but active listings, expired listings and homes under contract as well.
Another agent you interview could bring in pricing recommendations that are similar to yours or in some cases higher. For these recommendations to be an accurate depiction of what your home is worth, they should be supported by the same types of information, recent sales, expired listings and other nearby homes that are under contract.
Be cautious, because as the saying goes, If it seems to good to be true, it probably is. Some agents figure that it is easier to convince you that your home is worth more than it is, to get you to sign a listing contract with them, and then try to make changes later on and this will hurt your chances of selling your home in an appropriate time frame or even at all. Starting high and working down is not an effective sales strategy.