Realistic pricing nets sellers a higher return

 

Part 2 of Location remains top consideration

 

HONOLULU ADVERTISER September 18, 2005

BY LISA SCONTRAS

Custom Publishing Group

 

In a seller’s market, with inventory low, it’s tempting to start playing the “I’d sell my home if I could get ...” game.

 

And while prices may seem to be escalating at an unrealistic rate, a list price still should be within some realistic parameters.

 

The most accurate method to measure a home’s value is with a Comparative Market Analysis (CMA). Realtors and appraisers use this approach which basically compares your home to a minimum of three similar homes which recently sold in your neighborhood.

 

According to an example provided by the Honolulu Board of Realtors, if three homes similar to yours sold for $276,000, $279,000 and $278,500, and you wanted to sell yours for $285,000, there would have to be a legitimate reason why your home was worth the additional $6,000. Perhaps yours has an extra bathroom, a larger lot or a new roof.

 

Appraisers have adjustments to assign a dollar amount for an extra bedroom, extra bath, a remodeled kitchen, a swimming pool and just about any feature that makes it different. There are even adjustments for views, parking stalls and virtually anything that might increase or decrease value.

 

If your home has additional features, you can reasonably expect to get more for your home. But it’s prudent to listen to the recommendations of your real estate professional.

 

They know that listings are the hottest when they are new, and stale listings with price reductions may tell the prospective buyer that something is wrong with the property. While you always have the option of dropping your price, pricing it right from the beginning may give you the best opportunity to market your property while it still has some sizzle, and may actually get you the best price.

 

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