{"id":623,"date":"2014-11-01T16:23:07","date_gmt":"2014-11-01T23:23:07","guid":{"rendered":"http:\/\/robinintheverdes.com\/?p=623"},"modified":"2018-06-06T15:30:17","modified_gmt":"2018-06-06T22:30:17","slug":"comps-vs-competition-pricing-your-home","status":"publish","type":"post","link":"https:\/\/robinintheverdes.com\/?p=623","title":{"rendered":"Comps vs. Competition: Pricing your home"},"content":{"rendered":"

Probably the biggest factor in selling your home is the\u00a0price.<\/strong>\u00a0 Seems obvious enough, yet there are many factors that need to be considered in setting the listing price for your home. \u00a0Be aware that neither the home seller nor the Realtor set the price. \u00a0In the end\u00a0the market sets the price. \u00a0<\/strong>This is where the two types of “comps” come into play.<\/p>\n

The first of the “comps” we are all aware of is the comparables<\/em>. \u00a0<\/em>This is the prices of similar homes that have sold in your neighborhood in the last six months. \u00a0Appraisers will use “comps” to do an appraisal of your home in the event the buyer has to qualify for a loan, so if your buyer is using financing, be ready. \u00a0If other homes in your area that are similar to yours in square feet, age, condition, and number of bedrooms and bathrooms have sold<\/strong>\u00a0at a certain price range the appraiser will value your house at that average price. \u00a0This is how the lender can get a fair<\/strong>\u00a0market value\u00a0<\/strong>for the home. \u00a0Neither the appraiser nor the lender are emotionally attached to your home, and they are looking at your home as an asset that needs to have a value assigned to it. \u00a0Period. If you home is listed for $340,000 and the appraisal comes back with a value of $285,000 the buyer will have a decision to make about going forward with the purchase. \u00a0\u00a0Even some cash buyers will have an appraisal done to verify the market value before they go forward with a purchase contract. \u00a0When pricing your home, your Realtor will show you the “comps” in your area.<\/p>\n

But there is another “comp” out there putting pressure on your price. \u00a0The\u00a0competition. \u00a0<\/em>You probably got your first taste of competition if you had a lemonade stand as a kid. \u00a0You had great lemonade. \u00a0Freshly squeezed! \u00a0Plastic cups not paper! \u00a0A great price of 25 cents a glass. \u00a0This gave you a nice profit of 18 cents a glass. \u00a0It didn’t take long until the snotty kid down the block opened a lemonade stand and sold freshly squeezed lemonade in plastic cups for 10 cents. \u00a0She makes only 3 cents a glass, but now she is selling all the lemonade. \u00a0You get nothing.<\/p>\n

Your competition when selling your house may come from other listings<\/strong> in your neighborhood. \u00a0Listings are not used by appraisers as they may not reflect a true market value the way a sale does. \u00a0Listings are often set by the emotions of the home seller or the Realtor anxious to please the home seller. \u00a0Nevertheless, if the price of homes in your neighborhood are less than yours, and they have the same if not better features, buyers and other Realtors will be drawn to those listings. \u00a0Just like the 10 cent lemonade. \u00a0The more homes for sale in your area that are similar to yours, the more pressure they put on your price<\/strong><\/em>. \u00a0Your Realtor will also need to show you those prices too when you sit down to price your home. \u00a0It may not be a bad idea to have your Realtor take you to showings of those homes to let you see what your up against. \u00a0Know your competition!<\/p>\n","protected":false},"excerpt":{"rendered":"

Probably the biggest factor in selling your home is the\u00a0price.\u00a0 Seems obvious enough, yet there are many factors that need to be considered in setting the listing price for your home. \u00a0Be aware that neither the home seller nor the Realtor set the price. \u00a0In the end\u00a0the market sets the price. \u00a0This is where the […]<\/p>\n","protected":false},"author":1,"featured_media":597,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_front_end_style_editor":"no","ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"0","ocean_second_sidebar":"0","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"0","ocean_custom_header_template":"0","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"0","ocean_menu_typo_font_family":"0","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"on","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"off","ocean_gallery_id":[],"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[63977],"tags":[181302,294290192,1645836,70471200],"class_list":["post-623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-selling-your-home","tag-appraisal","tag-comparative-prices-of-homes","tag-sell-your-house","tag-setting-the-price-of-your-home","entry","has-media"],"yoast_head":"\nComps vs. Competition: Pricing your home - Real Estate in the Verdes Arizona<\/title>\n<meta name=\"description\" content=\"The first of the "comps" we are all aware of is the comparables. \u00a0This is the prices of similar homes that have sold in your neighborhood in the last six months. 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