Step 2: Assessing the Value of Your Home

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7 Steps to a Successful Property Sale

Step 2 in the steps to a successful property sale is assessing the value of your home.  Not necessarily a job for sissies if you live in some of the older areas of the St Louis Metropolitan area.

  1. understand current market conditions
  2. assess the value of your home
  3. set the right price
  4. calculate your bottom line
  5. prepare your home for sale
  6. develop a strategy for marketing your home
  7. review contracts and common real estate practices in your marketplace

Assessing the value of your home involves an in-depth comparison of active listings in close proximity to your home. The real estate term for this step is Competitive Market Analysis or CMA. The factors that you are comparing include: school district, number of bedrooms, number of baths, basement finishes, etc. The categories are:

  • Homes currently on the market (Actives)
  • Homes currently under contract – in escrow (Contingent, Option & Pendings)
  • Homes Sold Within the Last 6 Months (Sold)
  • Homes that did not sell within the Last 6 Months (Expireds)

When buyers are searching for property they are actively involved in comparison shopping.  Not only will they look at your home but all those available in your area at the time. This makes it imperative that you know your competition.

The homes that are currently under contract are an important barometer for the current value of your home.  They  are indications of the direction of the market. Even though you will not know the exact sale price of these homes, you will know at what price point an offer was received, how many days it was on the market before going under contract, how many buyers are in your price range and how many price reductions before it went under contract.

Sold listings are homes that have closed within the last 6 months. These are the homes that an appraiser will use to value the property for the lender. Important to note on these are the condition, amenities and price per square foot

The next article in this series will be: 7 Steps to a Successful Property Sale – Step 3, Set the Right Price,  What you should know about home appraisals

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