Why is it that some homes sit on the market for a year while 
others sell like hot cakes?  Frustrated sellers will blame a 
bad market, while a good real estate professional will tell 
you that many times, a slow sale is often attributed to the 
listing price.

If a home is overpriced, buyers will stay away.  But, if the 
price is competitive with similar homes in the area and “shows” 
better than the competition, it will have a better chance of 
being sold quickly.

The secret is perfecting a technique that’s as American as apple 
pie: comparative shopping.

Although comparing houses with different styles, square-footages 
and locations is challenging, real estate professionals still 
feel it’s one of the best methods to use when determining a 
home’s market value.

A responsible real estate agent will effectively evaluate a 
home’s worth through a process known as Comparative Marketing 
Analysis (CMA).  Taking a look at assets, such as a swimming 
pool, bigger than normal living spaces, a fantastic view, 
adjacent city parks and other attractions, the agent will 
begin to compare your home with similar properties, called 
“comparables,” that have sold in the area within the last six 
months.  Typically, the agent is able to recommend a realistic 
price range that will ensure you top dollar and a reasonably 
short escrow period.

However, factors such as the amount of time needed to sell your 
home can alter the agent’s price recommendation dramatically.

Typically, people should check with real estate offices in the 
community to determine the typical duration that listings are on 
the market.  Sales associates will explain that the marketing 
“norms” vary with prices and properties.  Based on this criteria,
the agent feels confident that he or she will be able to sell 
it for a price that both you and the buyer will be happy with.  
However, if you’re under time constraints because of unexpected 
job changes or moving agreements you’ve made on another property,
this will narrow your chances of selling the home for top dollar 
in the market.

Assuming you have sufficient time to market the home, here are a 
few small steps you and your agent can take to finding the right 
price for your property.

The best comparisons can be made with similar homes that have 
been sold within the last 45 days as opposed to the standard 
six months.  Any longer and other factors, such as the economy, 
could cloud your view of how much your home is really worth.

Another good benchmark is to review the selling prices of homes 
that have just been sold and are pending closes.  Most MLS 
services provide information on deals pending that most real 
estate agents should be able to shore with you.

A good rule of thumb before setting a price is to make 20 
comparisons of comparable properties within a one-mile radius 
of your house.  Once completed you can feel comfortable that 
the price you’ve picked is a good gauge of the home’s worth 
and won’t discourage qualified buyers.

Being open and honest about what you see as the home’s greatest 
strengths and biggest weaknesses will also help an agent get a 
better feel for how to best evaluate (or assess) and market your 
home.  Think of your home as if you were the buyer.  If your 
home is listed at the right price, you’re well on your way to 
a speedy and fruitful sale.