A look at the pricing process…
The Comparative Market Analysis (CMA) starts with a comparison of homes currently for sale and homes that have recently sold that are as like your home as possible, knowing each home and property is unique and special. Those comparisons are then adjusted in an as-if scenario – as-if they had the same features as your home to better account for variations in value. This work allows us to create an analysis that provides for the best pricing options based on current market activity. The graphic shows a typical, but just one of many scenarios on how pricing can affect sales.
It’s important to note this review is applicable for current conditions and should be updated at the time when you are ready to place your home on the market. Adjustments and updates should be made as new data becomes available as the market is constantly changing – new listings, pending sales, closed sales, price reductions, and expired listings are all factors that needs to be considered in real time.
How are pricing recommendations generated?
At Moscow Realty we use a multi-faceted approach to completing CMAs. The base information comes from the multiple listing service (MLS). This data is only available to licensed agents and tracks sold and active transactions including property specifics that are used to ensure similar properties are compared providing the most reliable base for CMA recommendations.
We then consider any property improvements, updates, and other factors not quantified in the MLS listing database. This could include remodel projects, landscaping, fences, sheds, new roofs, single-level vs. multi-level, and more.
Additionally, Moscow Realty agents consult as a team to review new listings and CMA recommendations to get a broader perspective making the most of our agent teams depth of experience.
In a neighborhood of similar homes, why is one worth more than another?
- Every home is different. When a home is sold, a willing seller and a willing buyer have just announced to the world the value of that home. From there, other similar homes are benchmarked, but other factors come into play. The most important are:
- Location – The closer a home is to jobs, parks, transportation, schools, and community services, the more desirable it is.
- Size – Square footage impacts home values because they’re built using more materials.
- Beds & Baths – All depending on the preference of the buyer and their desire for more or less privacy in personal spaces.
- Features & Finishes – Outdoor kitchens and spa baths make a home more luxurious. A home finished with hardwood floors and granite countertops is going to cost more than a home with carpet and laminate countertops.
- Condition – The closer a home is to new construction, the more it is perceived as more modern, up to date, and perhaps safer. Homes that are not updated or in poor repair sell for less.
- Curb Appeal – From the street, the home looks clean, fresh, and inviting. Fresh landscaping and flowers won’t change the size or location, but they certainly add charm. When two homes are identical in the same neighborhood, a higher price may come down to something as simple as views, or paint colors, or the overall taste of the homeowner.
Valuing a home will never be an exact science, but if you buy wisely, keep your home updated and in good repair, you should recoup most if not all of your investment.
Visit our website to find out what your home might be worth and to request a personal analysis!