5 Comparable Issues That Impact the List Price
Many people think that sale price is the only factor when you’re looking at comparables and trying to set a listing price or asking price. But it’s actually a bit more complicated. Here are five things that affect comparables or comps that are general not considered.
1. New construction nearby: Because of low prices for lots and varying prices in home building materials, new homes can actually be cheaper and cost less per square foot than existing homes. If there’s a lot of new construction nearby, that can affect the price for your own listing.
2. Renovations: Recently renovated homes typically sell for more than homes that haven’t been updated in a while. If you’ve recently upgraded your home—especially sought-after upgrades like the kitchen or master bath—your home should be priced appropriately.
3. Developable lots: Not all lots are created equal. Even if the square acreage is the same, a lot that’s easily developable will get a better price than a hilly or rocky lot that needs a lot of preparation.
4. Listing price vs. sale price: Whether sellers actually get their asking price depends greatly on the market. When you’re pricing your home, it’s important to look at sales prices, not just listing prices. The listing price doesn’t always accurately reflect what a home will sell for.
5. Location: Nearby amenities, safety, schools, and noise levels can vary greatly within a neighborhood. Homes in more desirable parts of the neighborhood will sell for a higher price, all else being equal.
Setting the home price can be the hardest part about selling. Set the price right and the property sells. Set the price wrong and the home may not sell at all. Price is the single most important factor for many buyers to consider first. These five comparable issues are an important factor in setting a listing price.
Coffee Real Estate will go beyond the standard Comparative Market Analysis or CMA and establish the best marketing listing price for your property. This process will establish the best selling price along with your goals to set the listing price.