Spring has arrived and many folks have begun to prepare for buying or selling their homes. The real estate market is ever changing and now more than ever buyers are educating themselves to the process. No longer are the "used car salesman" mentalities able to make a living in real estate, or if they are they may find that their days are numbered. Consumers more than ever before are recognizing the importance of doing some homework before buying or selling any real estate. Because of this increase in buyer sophistication, it is becoming increasingly important for the seller to price their property correctly. Todays buyers are asking for a Comparative Market Analysis (CMA) and the professional agents are providing these analysis before being asked. In days gone by the agent might just quote what other properties were selling for in the neighborhood in which the buyer showed interest. This is in no way indicative of fair market value. Market value is based upon what a buyer has actually paid for a property. A Comparative Market Analysis should reflect sales of like properties in the immediate area of the subject property within the last 6-8 months. Extraneous factors such as replaceability of property, uniqueness of location, etc. may be factored in. However, the foundation of the Market Analysis are the comparatives (like-properties in same area and their recent selling price).

Because of these factors and increased buyer sophistication, it is increasingly important for the seller to price his/her property correctly. Property values are NOT dictated by what the seller has invested in the home, nor by what they need to receive from the property. These factors are not applicable to setting a sales price. It is the Realtor's job to tactfully prepare the seller for this fact and help them realize the importance of pricing the property at market. When priced accurately, many properties sell immediately because the first month on the market is typically the time of most activity for new listings. If those listings are priced at market, properly marketed, and prepared for showing, the likelihood of a quick sale is greatly increased. Many times sellers eventually lower their price to market after the best buyers have already dismissed the property as being overpriced, and the seller ends up expending more money and time because the property was not correctly priced immediately. It is important for the seller to keep in mind that they are paying interest on his mortgage each month that he continues to carry a home that does not sell and a delayed sale may be causing him to incur expenses related to that delay. The seller may lose the opportunity to purchase a desired home if he/she must sell in order to buy. Sometimes just the time and effort involved in keeping a home "show ready" is enough to encourage a seller to price their home correctly.