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The single most important factor
in the marketing of real property is the opinion of value.
Because buyer interest is highest when a property is first
listed, the determination of the proper price to introduce
your property to the market is crucial. Property that is priced
too high will sit on the market and become "shop worn".
It is likely to be shown less because agents will perceive
the sellers to be unmotivated, thus it will take longer to
sell your property and you may help sell other, more appropriately
priced, properties. When overpriced listings "age"
on the market, prospective buyers get the impression that
something is "wrong" with the property other than
the price. Ideally, the property should be priced at COMPARABLE
MARKET VALUE. Studies continue to show that a property
listed at 15% over market value has a 20% probability of sale;
10% over market value has a 30% probability of sale; 5% over
market value has a 50% probability of sale. Properties
priced at market value have a 95% probability of sale.
The most meaningful comparable sales are:
similar in neighborhood, size, style, condition, parking,
etc. And the comparable recent sales should have occurred
less than one year prior to the offering of your property.
Another important component of the comparative
market analysis is the section for comparable active listings.
These listings are our competition. Comparable recent sales
data should be correlated with current competitive listings
to determine pricing and marketing strategy. Few comparable
currently listed properties may place us in a strong marketing
position as there are likely more buyers to compete for this
scarce product (your property). The reverse may be true if
there is an abundance of comparable currently listed properties.
The comparative market analysis doesn't
end with the beginning of the listing. We will update you
with both new comparable sales and new listings throughout
the term of the listing.
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