Pricing Strategies For Selling Your Home In Vancouver
Aug 30, 2018
Aug 30, 2018
Working with our clients on pricing strategy, one of our big focuses is on bringing things to light that they may not have been able to find out otherwise. As experts, we have the inside track on the ins and outs of each neighbourhood, block and even specific properties.
As we work together on your pricing strategy, the goal is to ensure your home sells at fair market value within a reasonable period of time.
Here are some of the key things that we’ll look at as part of a pricing strategy for your home:
Fair market value is the price a buyer is willing to pay for a home given its condition, recent comparable sales and listings, and the local real estate market.
To calculate the fair market value of your home, we will prepare a Comparative Market Analysis (CMA) report summarizing properties in your area with similar square footage, construction, age and condition that have recently sold or are currently on the market. Recent comparable sales and listings are two of the most important factors impacting fair market value. Comparable listings that expired before they had a chance to sell also offer an indication of the fair market value of your property.
Adjustments to your home’s valuation will also be made given its location (e.g. proximity to parks, waterfront, schools and transportation), floor plan, home improvements, amenities, parking, storage and other variables.
There are some extraordinary homes and estates that have few or no comparables. In these cases, preparing a CMA requires specialized expertise that we can provide.
Other factors that may influence the fair market value of your home include whether it’s trending towards a buyers’ or sellers’ market, the number of similar homes on the market, interest rates and the overall lending climate, the average number of days similar properties are on the market, and whether similar properties are selling for above or below the asking price.
Considerations such as macro economic trends, property appraisals or tax assessments may have some influence on the fair market value of your home; however, more often than not, this influence may be limited or inconsequential. For example, the assessed value of your property for tax purposes may be significantly higher or lower than its value on the real estate market. This is because buyers and investors will evaluate the value of your home against recent comparable sales listings, not against property tax assessments.
One factor that has no influence on your property’s fair market value is the price you originally paid for your home. Even if you purchased your property recently, the local real estate market and the market value of your home may have dramatically changed.
Determining your home’s listing price is one of the most critical decisions you will make in your sales and marketing strategy, and we will provide you with a professional, well researched and formulated opinion of the market value of your home to establish a competitive price.
Your recommended listing price will take into consideration your home’s fair market value, adjustments for unique property attributes, neighbourhood market trends and appropriate pricing strategies given current market conditions. This may include:
If you overprice your home above its fair market value, potential buyers and real estate investors will compare it unfavourably against recent comparable sales and listings.The risk is that your property will linger on the market for longer than what is typical for similar listings, stigmatizing it as an undesirable or blatantly over-priced property as a result.