How Flexible You Should Be While Selling a House?
Posted: Monday, April 11, 2011
by Mike Smith
Better HOmes
No matter if you heir a realtor or a real estate agent, you will be the person to finally decide which offer to accept and how much you can be flexible when selling a house. Realtors or Real estate agents plan few things in order to design the quotations of the house.
You should have to evaluate few things in order to know how much you should be flexible while selling a house.
Comparative Market Analysis:
The first step in pricing a home for market is getting a comprehensive comparative market analysis or (CMA). The sales agent typically prepares the CMA when the property is listed with real estate agent. This analysis shows the comparable properties that recently sold in your neighborhood or a similar nearby neighborhood. This will not only will not only help you price the house but it also gives you an idea of what buyers are willing to pay for you or your kind of property. Unless you need to move the property quickly, it is not necessary to be so flexible that you accept a price far under the recent comps for your area. The comps show what buyers are willing to pay.
Determining Price:
This is pretty obvious that while preparing the CMA the real estate agent or realtor will average the adjusted sale prices of the comparable properties, for each comparable property the agent will take the actual amount and adjust the price in case of any difference. for example if a comparable house didn't have a car parking area that your house have so he will take the actually selling amount of the comparable property and then adjust/add the price for car parking to fix the actual price. Prices are always depending upon area to area and country to country.
New On Market:
When selecting a listing price, some sellers opt to list the house closer to the higher end of the range at which comparables sold. For example, if three comparables include houses with adjusted sold prices of AED 120,000, AED 118,000 and AED 116,000, the average price is AED 118,000. The buyer who decides to list at the low price of AED 116,000 rather than AED 120,000 may not need to be as flexible as the buyer who initially lists at the high end of AED 120,000. This is because the prime time to sell is within the first week or so that the property hits the market. If priced on the low side of comparables, buyers perceive the new listing as a bargain to snatch up immediately. Sometimes, this requires the seller to be far more flexible with the final sale price than had he initially listed closer to the low comp price.
As a seller, you can be far more flexible when you keep your emotions and sentiments out of the transaction. Consider the expenses you will face if you pass up an offer, such as additional house payments, utilities, insurance or maintenance. It may be a better financial decision to take the lower offer.
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