Posted almost 11 years ago

Using Comps To Set Correct Pricing When Selling Your Miami Beach Home

Setting the correct pricing when selling your Miami Beach home involves many different scenarios and factors. At the end of the of the day, selling a home involves three main core factors: price, condition and location. Ultimately the market and what a buyer is willing to pay pretty much dictates what the selling price is going to be if you want to sell your home in today’s market. With that said, there are of course many other factors that need to be considered. The best way to determine and a good idea of the correct pricing is to contact your local Realtor®. This professional would use their resources to research similar homes in the area and how much they have been selling for. She would then use this information to formulate an initial asking price for what she feels the home would sell for in today’s market. If you want a more in depth analysis and to get a better feel for how an actual appraisal would go, you can always hire an appraiser to provide you with a professional appraisal of the property.

I Keep Hearing About Real Estate Comps? Why Do I need Comps?

Before you can use real estate comps to determine the correct pricing when selling your Miami Beach home, it is important to understand what comps are. In order to determine the correct asking price for any home, an experienced Realtor® will turn to what are known as “comps” or comparable homes for sale in the area. The typical agent will look at three or more comps listed in the MLS (Multiple Listing Service). The MLS is a real estate listing service that consists of a database covering all homes for sale within your area.

The listing comps covers homes that are for sale, are pending sales, or have already been sold. Although you may not be able to access the MLS as easily as your Realtor®, you can still find the listings online or ask your Realtor® to provide you with access. The listing comps are free and can be a very valuable asset in your quest to set the correct price for your Miami Beach home.

Sold Properties Are the Key

While current listings are important, they only play a small part in setting the correct pricing when selling your Miami Beach home. Sellers and Realtor®s can list a home for any amount of money, however this does not mean they are going to get it. The number that is more important is the one that covers how much similar homes in your area have actually sold for. In other words, you need to know how much buyers have been willing to pay for homes in your area that are approximately the same size, shape, and location as yours.

Using the Comps

Since every home in your area is different in many ways, you need to compare only those that closely resemble yours. In other words, if your Miami Beach home has three bedrooms and two baths, there is no point comparing it to two bedroom homes with only one bath. The same applies to location as similar homes in completely different neighborhoods are not likely to sell for the same price.

If you are truly interested in setting the correct pricing when selling your Miami Beach home you should choose at least three homes that are similar to yours and have sold in the past six months. As you compare homes be sure to adjust your comparison to make allowances for differences such as square footage, extras such as swimming pools, garages, decks, and items that can add or detract from the value of your home. While this is an overly simplistic view of the process, as you work towards your goal of setting the right price, using comps will help you reach the right decision and most accurate pricing.

Do you have more questions about Using Comps To Set Correct Pricing When Selling Your Miami Beach Home?

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