This is part four of a five part series on pricing your home and pitfalls to avoid.
The best pricing strategy is using an agent. Particularly one who uses comparable sales or comps. These should be more than just your neighbor’s house. Preferably they should be homes in the same area, with similar properties. Things that will affect the value are style, age, size and location among other factors.
Once they have gathered the comps, they will compose a CMA, Comparative Market Analysis. Don’t confuse this with an appraisal. An appraisal is based on hard data, not market trends or projections. An appraisal is a tool used by lenders to determine how much they can safely lend on a given property.
After analyzing the data, they will work with you to determine a reasonable price. The number they give you may not be what you want to hear, but can often help you avoid a long listing process, that may not sell.