Pricing a Home for Today’s Market – Part 1.

At the Dana Green Team, we take pricing your home seriously! In the greater San Francisco Bay Area, the outcome of the sales between a well-priced home and an over-priced home can add up to tens or even hundreds of thousands of dollars.?

According to Patrick Carlisle, COMPASS’ Chief Market Analyst for the San Francisco Bay Area, “When an overheated market cools, pricing a listing correctly becomes especially critical.?Overpricing has significant costs in time and money for Sellers (though it can provide opportunities for Buyers).”?

When I began in real estate almost 20 years ago, my goal was to do things differently. This included changing the industry in terms of how we price our listings and how we analyze the market data we present to our clients. Pricing was done by groups of Realtors who would provide their best estimate of value based on experience and their gut reaction. In fact, many Realtors still do exactly this today.

Our team takes a different approach. We actually provide data to our clients three different times for each property we sell:?

• ?The first time we create a proprietary and unique comparative market analysis (CMA) is prior to taking your listing. We do this to ensure we have discussed competitive properties, market conditions, and your sales goals. This also allows us to discuss pricing strategies and the current value range of your home.
• The second time we create a CMA is the week prior to placing your home on the MLS. We do this to be able to select the final list price of your home with the most current data available.
• The third time we create a CMA is when we enter a contract. We want to present the appraiser for the property with accurate data that will increase the odds of a successful appraisal outcome.

In addition, our Buyers’ Specialists are previewing active listings and analyzing comps to better speak to condition and value when preparing a CMA for our buying clients.?With the current market shift, understanding how a home is priced (high, low, or accurately) is imperative to our Buyers’ success.

Our team of local real estate experts can offer you guidance and advice to help you succeed in today’s market. If you want to learn more about your home's value, or the value of a house on the market, please let us know. We would be happy to run numbers and have a conversation with you. Tune in next week for part 2 -?The dangers of over-pricing your home.

Dana & Team