BEST ANSWER
If there are 30 competing homes in your market that are all priced well, you have a lesser chance of capturing a buyer.
If there are 2 competing homes in your market that are priced will, you will have a better chance of captruing a buyer.
After looking at the recent solds (last 60 days, max 90) and compare those price points to solds of 4-6 months ago, look at a pricing trend. In order to come up w/ today's comp value, you have to price for today. If there has been a downward trend in your market, and you price exactly as the comps of 90 days ago, you may need to reduce 5-10% to be "comparable" and then take your "under market" pricing strategy from that number. Your CMA should first adjust for the timeline. Many CMAs do not.
Do not look to current and active properties to set your comp price. If they are overpriced, it will skew your asking price and hurt you. Look to the recent comps first. Adjust for the time line and pricing trends in your area. Now, look at the active listings and your competition. If you price 15% below your comp price as arrived at above, are you going to compete w/ 1, 20, or 200 properties. The greater your competition, the greater price reduction you will need to make in order to shine.
15% may make place you on the leaderboard, or it may not. If you are seriously about selling in 2 wks, you will need to shine brigt enough to create an incentive for the buyers to come now. Buyers are rather complacent and assusmptive in today's market. They assume that there is no rush and the property that might interest them will be there tomorrow and the next day. You have to be aggressive enough in your pricing to provide the incentive of scarcity. You can only be scarce if you are in the mniority.
15% may do it, may not. Consult a local RE Pro and be sure to discuss time line trends as it applies to comp values.
Best of luck
Deborah
Thu Nov 29 2007, 05:30