How Reliable Comparable Sales Can Help Sell Your Home
Before you take the final step to put your home on the market, be sure to understand how comparable sales can help you find the right price range. Looking at how much your neighbors sold their house for can help you determine how much you can sell yours for. And determining the right price is the best way to ensure a sale.
The Makings Of A Good Comparable Sale
The best comparable sale is a house that is the same model as yours in the same San Francisco, CA subdivision. Look for a home that escrowed last week, or very recently. Other factors to take into account include:
- Location – It doesn’t have to be the house next door; just find a house that is in your neighborhood, subdivision, and school district.
- Home type – Look for homes that are alike in style, square footage, number of bedrooms and bathrooms, yard size, and materials.
- Amenities and upgrades – Has the bathroom been recently remodeled? Does it have central air conditioning? Is there a pool, deck, or a three car garage? Are the homeowner’s association fees similar?
- Sale date – Don’t use a comparable home that was sold two years ago when the market was high. Most lending programs suggest comparable sales be no older than 90 days.
- Deal sweeteners - Did the comparable-sale sellers give the buyers down payment assistance or include state-of-the-art appliances? You have to reduce the value of any comparable sale to account for these sweeteners.
About Those Foreclosures And Short Sales
If you find a short sale home or one that was foreclosed on, speak to your real estate agent how they should be treated. Homes in foreclosure are often in poor condition because the owners couldn’t pay the mortgage or the upkeep. If your home is in good condition, it should be priced higher than the foreclosed model.
Short sales are still distressed sales, but the homes are typically in good condition. Many times the owners are selling due to a divorce, or a job transfer that takes them away from San Francisco, CA. How much short sales are discounted from their market value varies among local markets. Rely on your real estate agent's knowledge of the local market before using a short sale as a comparable sale.
Additional Things To Consider
If you still have trouble deciding on a listing price for your home, look at the current competition. Talk to your real estate agent and ask them to be honest about your home when compared to the other homes the market. Listen to their answer without taking criticism personally.
Put your comparable sales into categories of more expensive and less expensive. Do a breakdown to determine what makes your home more valuable than the cheaper comparable sales, and what makes your home less valuable than the pricier comparable sales. With a little bit of work and determination, you’ll settle on the right price to sell your San Francisco, CA home without regrets.