If you are looking to sell your home, you might be tempted to do it yourself, avoiding the middleman altogether. While this may benefit you in some scenarios, the wisest option in most cases is to make use of the knowledge and experience of real estate agents or home buyers houston, TX to expedite the process and ensure that you get the best price you can. Allocating a certain amount of money for the commission is a price worth paying, for a few reasons.
Unless you are well-versed in comparative market analysis—known in the industry as CMA—consulting an expert could make a huge difference in your sale. CMAs are a pivotal point in the process of selling a home, since they involve a detailed analysis of various facets that contribute to the proper assessment of the overall value of a home, enabling you to make a solid decision on the asking price, without the risk of overlooking important aspects that could potentially make or break the effectiveness of your transaction. CMAs can vary from being a couple pages long to detailed 50-page guides, depending upon individual real estate agents. Regardless, standard CMAs typically include active, pending, sold or off-market, or expired listings.
Active listings refer to homes that are currently on the market for sale. Their relevance is only in terms of competition, but otherwise offer no real indication of market value, since the prices are up to the sellers’ discretions, which may not necessarily be realistic representations of actual market value.
Pending listings are useful in the analysis of the market value since they comprise formerly active listings that are currently under contract. The eventual selling prices of the homes are the numbers that are indicative of market value, but their correspondence to the initial asking price can vary considerably—but, if the involved parties do not wish to disclose the actual numbers, you may not know what the discrepancies are. The closest your home’s asking price is to that of the pending listings, the faster you will be able to sell your home—conversely, the higher up it is, the longer it will take.
Sold listings are, as the name suggests, homes that have already been sold. These constitute a clear indication of market value since you are able to see what other homes have sold for and act accordingly. In the process of appraising your home, this category of listings is the go-to reference guide.
Off-market, canceled, or withdrawn listings refer to homes that have been taken off the market for one reason or another—typically because they were priced too high. There can be a host of other reasons for the removal of homes from the market, such as seller’s remorse or long DOM (days on market), but a median of the prices may assist you in gauging overall market value since it tends to be higher than the median of comparable sales.
Expired listings, like off-market listings, are usually homes that were too highly priced and consequently did not sell. This group is also a good indication of what is too much, and may thus aid you in generating a good, but realistic, asking price for your home, in order to avoid falling into this category and to reduce your DOM.
Your real estate agent will make all the necessary arrangements and help you come up with a reasonable—but beneficial—asking price for your home, based upon detailed analyses relative to the home itself, as well as a number of other factors, after generating a comprehensive CMA. This process and their expertise are sure to facilitate the speediest, most reliable, and most profitable sale of your home.