Real Estate – Benefits of a Market Analysis
When a real estate agent estimates a selling price for your home,
most people believe the price is too low. But, a good real estate
agent performs a Market Analysis of your neighborhood and
surrounding area. Many different factors go into this analysis and
it is important to hire an agent rather than going at a home sale
The market analysis will look at your home and the other comparable
homes in the neighborhood. This means it will only compare
properties which have the same features as yours. If you have three
bedrooms then the analysis will look at other three bedroom homes.
The market analysis will evaluate homes which have sold in the past
six months. It will also look at homes which were listed and did not
sell. The last thing the analysis will include are homes currently
on the market.
By getting an average of the different prices, the real estate agent
can give you a pretty good indication what your home should sell for
in the present market. You may feel the price is too low. Many
sellers feel this way. However, the market analysis is extremely
The market analysis will show you the listing prices of the houses
in your neighborhood for the last six months to a year. You will
then be able to see if they sold for that price. It may shock you to
learn many of them did not sell for the asking price. If they did,
then stipulations were probably made by the seller, buyer, or both.
These agreements could be things like the seller agreeing to pay
closing costs or points. Either way, the asking price the seller was
hoping for was lower.
Beware of the real estate agent who does not do a market analysis.
Steer clear from the ones who ask you want you want to sell your
house for. You want a professional who knows how to market your home
and will get the best price for it. In order to do this he or she
must review the market to determine what is selling and what is not
moving at all. There is going to be a price range your home will fit
into. This is what a good real estate agent will explain to you. He
or she will usually list your home for the higher end of the price
By setting the price a little higher, not a lot, you have a
negotiating chip. In today’s buyer’s market a buyer may ask you to
pay the points or closing costs or both. You may be asked to
contribute the down payment. When the buyer does this, sometimes the
house actually can sell for more than the asking price. It is one of
the ways buyers who are a credit risk can afford to buy a home.
You should never ask more than the market will bare when setting the
price for your home. You need to carefully think about all the
options when determining your price. Things like how updated the
kitchen is or how big the yard is can have a lot to do with what
your price will be. There are other things you can do to get top
dollar for your house.
Curb appeal is one of the most important things in selling a home.
If a buyer drives by, you want him or her to notice your house. It
must look appealing and orderly. If it appears run down and in need
of repair, people will just drive by. It may be hidden by trees and
shrubs. Cut them down and let the neighborhood see how nice your
A good real estate agent will be able to list your home at a
reasonable price. He or she will be able to tell you what must be
done to get the greatest possible price for your home. They are the
professional. If you listen to them, your house will sell.
Back to San Diego downtown real estate article index