Sizing Up the Competition To Get the Best Price

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Portland Me: The primary job of the real estate broker is to secure the best price possible for their “selling” clients. It can be a fine balancing act between over pricing and pricing right – certainly no-one wants to under price unless part of a strategy to roll the dice on creating a bidding war.

The technique employed by brokers to settle on a market price that makes sense is to accurately assess the competition – a combination of recent sold prices of similar properties (called “comparables”) with also consideration given to like-kind properties that are currently on the market.

This exercise is often called a “comparative marketing analysis” or a “CMA” and involves making adjustments – both pluses and minuses – where the comparables have some differences ie size, condition and location. The listing broker will also want to find out as much as is available surrounding the terms of the sale of any comparable homes.

Proper pricing is key and is the main driver in determining selling a property in a timely fashion and for the most money available. When hiring a real estate agent experience in this particular area is of paramount importance.

It can be tempting for sellers to go with a price that’s the highest suggested but if it’s not credible the danger in the end is a property will languish without being sold and ultimately cost the seller more money in carrying costs and the like than listing at a lower, more reasonable, price from the outset.

To find out how much your home is worth today call Donna Saxby for a property valuation by either calling 207-553-1384, emailing donnasaxby@kw.com or visiting www.donnasaxbyproperties.com

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