How to Use Comparable Sales to Price Your Home

Before you put your home up for sale, use the right comparable sales to find the perfect price.

How much can you sell your home for? Probably about as much as the neighbors got, as long as the neighbors sold their house in recent memory and their home was just like your home.

Knowing how much homes similar to yours, called comparable sales (or in real estate lingo, comps), sold for gives you the best idea of the current estimated value of your home. The trick is finding sales that closely match yours.

WHAT MAKES A GOOD COMPARABLE SALE?

Your best comparable sale is the same model as your house in the same subdivision-and it closed escrow last week. If you can't find that, here are other factors that count:

Location: The closer to your house the better, but don't just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.

Home type: Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it's finished), finishes, and yard size.

Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees?

Date of sale: You may want to use a comparable sale from two years ago when the market was high, but that won't fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.

Sales sweeteners: Did the comparable-sale sellers give the buyers downpayment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.

AGENTS CAN HELP ADJUST PRICE BASED ON INSIDER INSIGHTS

Even if you live in a subdivision, your home will always be different from your neighbors'. Evaluating those differences-like the fact that your home has one more bedroom than the comparables or a basement office-is one of the ways real estate agents add value.

An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. She has read the comments the selling agent put into the MLS, seen the ugly wallpaper, and heard what other REALTORS, lenders, closing agents, and appraisers said about the comparable sale.

MORE WAYS TO PICK A HOME LISTING PRICE

If you're still having trouble picking out a listing price for your home, look at the current competition. Ask your real estate agent to be honest about your home and the other homes on the market (and then listen to her without taking the criticism personally).

Next, put your comparable sales into two piles: more expensive and less expensive. What makes your home more valuable than the cheaper comparable sales and less valuable than the pricier comparable sales?

ARE FORECLOSURES AND SHORT SALES COMPARABLES?

If one or more of your comparable sales was a foreclosed home or a short sale (a home that sold for less money than the owners owed on the mortgage), ask your real estate agent how to treat those comps.A foreclosed home is usually in poor condition because owners who can't pay their mortgage can't afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.

Short sales are typically in good condition, although they are still distressed sales. The owners usually have to sell because they're divorcing, or their employer is moving them to Kansas.How much short sales are discounted from their market value varies among local markets. The average short-sale home in Omaha in recent years was discounted by 8.5%, according to a University of Nebraska at Omaha study. In suburban Washington, D.C., sellers typically discount short-sale homes by 3% to 5% to get them quickly sold, real estate agents report. In other markets, sellers price short sales the same as other homes in the neighborhood.

So you have to rely on your REALTOR's knowledge of the local market to use a short sale as a comparable sale.

MORE FROM HOUSELOGIC

What You Must Know About Home Appraisals

6 Reasons to Reduce Your Home Price

OTHER WEB RESOURCES

New York State: "How Estimates of Market Value are Determined for Residential Properties"

What's the Value of a View? Research from Texas Christian University

Carl Vogel, a freelance writer and former editor of The Neighborhood Works magazine, lives in a home in Chicago that is not typical of those nearby, so he appreciates a savvy comp.

Article From Houselogic.com

By: Carl Vogel

Published: August 05, 2010

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).Copyright 2010. All rights reserved.

Home Sales Boosted by Homebuyer Tax Credit

Buyers responding to the homebuyer tax credit and favorable affordability conditions boosted existing-home sales in March, marking the beginning of an expected spring surge, according to the National Association of Realtors®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, rose 6.8% to a seasonally adjusted annual rate of 5.35 million units in March from 5.01 million in February, and are 16.1% above the 4.61 million-unit level in March 2009.

NAR Chief Economist Lawrence Yun said it is encouraging to see a broad home sales recovery in nearly every part of the country, with two important underlying trends.

“Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running,” he said. “The home buyer tax credit has been a resounding success as these underlying trends point to a broad stabilization in home prices. This is preserving perhaps $1 trillion in largely middle class housing wealth that may have been wiped out without the housing stimulus measure.”

Total housing inventory at the end of March rose 1.5% to 3.58 million existing homes available for sale, which represents an 8.0-month supply at the current sales pace, down from an 8.5-month supply in February. Raw unsold inventory is 1.8% below a year ago, and is 21.7% below the record of 4.58 million in July 2008.

“Foreclosures have been feeding into the inventory pipeline at a fairly steady pace and are being absorbed manageably,” Yun said. “In fact, foreclosures are selling quickly, especially in the lower price ranges that are attractive to first-time home buyers.”

A parallel NAR practitioner survey shows first-time buyers purchased 44% of homes in March, up from 42% in February. Investors accounted for 19% of transactions in March, unchanged from February; the remaining sales were to repeat buyers. All-cash sales remain elevated at 27% in March, the same as in February.

The national median existing-home price for all housing types was $170,700 in March, up 0.4% from March 2009. Distressed homes, typically sold at a 15% discount, accounted for 35% of sales last month—unchanged from February.

“With home values stabilizing, a revival in home buying confidence will likely help the housing market get back on its feet even as the tax credit impact disappears,” Yun said.

Single-family sales up 7.3%Single-family home sales rose 7.3% to a seasonally adjusted annual rate of 4.68 million in March from a level of 4.36 million in February, and are 13.3% above the 4.13 million level a year ago. The median existing single-family home price was $170,700 in March, up 0.6% from March 2009.

Single-family median prices rose in 14 out of 20 metropolitan statistical areas reported in March in comparison with a year earlier. Five metro areas experienced double-digit increases, including San Diego, St. Louis and Boston.

Condo sales up 3.1%Existing condominium and co-op sales increased 3.1% to a seasonally adjusted annual rate of 670,000 in March from 650,000 in February, and are 39.3% higher than the 481,000-unit level in March 2009. The median existing condo price was $170,600 in March, which is 0.7% below a year ago.

Regional home salesRegionally, existing-home sales in the Northeast increased 6.0% to an annual level of 890,000 in March and are 25.4% higher than a year ago. The median price in the Northeast was $249,800, up 8.9% from March 2009.

Existing-home sales in the Midwest rose 7.2% in March to a pace of 1.19 million and are 15.5% above March 2009. The median price in the Midwest was $139,300, up 0.2% from a year ago.
In the South, existing-home sales increased 7.1% to an annual level of 1.97 million in March and are 13.9% higher than a year ago. The median price in the South was $154,800, up 5.2% from March 2009.

Existing-home sales in the West rose 6.6% to an annual rate of 1.30 million in March and are 14.0% above March 2009. The median price in the West was $209,400, down 7.9% from a year ago.

Source: NAR & Houselogic.com

Published: April 22, 2010

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.

Sea Coast Agent & Buyers Featured in USA TODAY

Today Jessica Riffle Edwards of Coldwell Banker Sea Coast Realty is featured in a USA TODAY article that asks, "Will tax credit help first-time buyers ignite home sales?"

Her client, Michael Jennings, says the April 30 deadline for the $8,000 homebuyer tax credit was a factor in his decision to buy a home after 3 months of house hunting.

"The tax credit was a big factor. I wouldn't have moved as quickly as I did," Jennings says. "You really hate to miss out on that chunk of change...”

Home buyers have only two weeks left to take advantage of the home buyer tax credit. The program offers up to $8,000 tax credit to first time home buyers and $6,500 to buyers that have owned their current home for five of the last eight years.

To learn more about the tax credit program, please visit www.seacoastrealty.com/8000now.

Selling a Home During the Holidays

The end of the year is not just about holiday shopping, family gatherings and other festive events. Many people use the time off to move before the New Year. The professionals at Coldwell Banker Sea Coast Realty offer the following tips to help sellers maximize their home’s charm and allure during the holidays:

Increase Curb Appeal: First impressions are critical. If the home is in a snowy area, make sure to clear the walkways and driveway. Remove any late fall leaves, and ensure the path to the stairs is free of ice. Put up a few exterior holiday lights and decorations to display seasonal tidings and pride in ownership. Do not overdo the lighting. Keep it tasteful and consistent with the rest of the neighborhood. A holiday welcome mat outside the front door is also an inviting touch.

Keep the House Warm and Welcoming: November, December and January can be cold, so make sure the home is warm and cozy. If the house has a fireplace, light a fire to bring the room to life and enhance the ambience. Bake holiday cookies and treats to give the home an enticing aroma.

Decorate the Interior: It is important not to overwhelm home shoppers with dramatic displays of holiday cheer, so be conservative with holiday decorations. Decorate to accentuate the house, not to cover it. Tasteful decorations will help connect buyers to the home, remind them of pleasant memories and help them imagine their own holiday celebrations there.

J.D. Power and Associates Ranks Coldwell Banker Highest in Home Seller Satisfaction

J.D. Power and Associates recently ranked Coldwell Banker Real Estate LLC highest in home seller satisfaction. With results like those, isn’t it time you put Coldwell Banker Sea Coast Realty to work for you?

“With unsurpassed local knowledge, expertise and work ethic, we at Coldwell Banker have always felt that our network of professionals is the greatest in the industry, and we’re pleased J.D. Power and Associates recognized it,” Jim Gillespie, president and CEO of Coldwell Banker Real Estate LLC.

The independently administered 2009 Home Buyer/Seller Study SM study examined four factors in the home-selling experience including: agent; marketing; office; and package of additional services.

“This award is a testament to the hard work and professionalism of our entire Coldwell Banker brand and Sea Coast Realty,” said Coldwell Banker Sea Coast Realty president Tim Milam.

Contact Coldwell Banker Sea Coast Realty today and find out how you can be another highly satisfied home seller.