The Real Estate Market in Charles County is tough right now, period. Even experienced tried and true agents are seeing less sales, less showings, less of everything but listings! It underscores how hard it is for people who are in the process of selling their home, or getting ready to put their home on the market.

People often think that their home is the nicest one on the block(it's a natural bias), and it can be difficult to examine their home critically. It's important to understand that this is a natural feeling, but selling a home is a business transaction (a BIG ONE!), and it should be treated as such.

Finding A Price

The first step in selling a home is establishing it's value, and this is done with a Comparative Market Analysis (CMA). A CMA is essentially a comparison of other homes that are similar and have been on the market recently. Any local, licensed Realtor should be able to do one for you, typically free of charge There are 3 major categories to a CMA:

• Active Listings= What Comparable Homes MAY sell for (This will be your competition!).

• Sold Listings= What Comparable Homes HAVE sold for.

• Expired/Withdrawn Listings= What Comparable Homes DID NOT sell for (Homes here were priced wrong in relation to their condition).

Dude, Where's My Upgrades?

A big concern to keep in mind is that all of those extras your home has may or may not positively impact the value when it comes time to sell. Here's a good example:

Let's say you've just remodeled your bathrooms. In the renovation, you installed $10,000 solid gold toilets. They're fabulous, probably the best looking toilets in the whole county! Now, all you have to do is find someone willing to pay $10,000 more for your house because the toilets are solid gold. "They're worth $15,000 if you melted them down!", you say. That's great, but you are trying to accomplish two very difficult tasks.

1. Find a buyer for your house in a slow market
2. Find a buyer for your house that's willing to pay an extra $10,000 for prettier toilets.

Unfortunately, you're not likely to see the value return in a case like this. The home has been over-improved. That's not to say all upgrades are worthless, but they need to be suitable for the property.

I Was Certain It Was Worth More!

A CMA is designed to give a range of value, not a definitive number. For a precise figure, you need to pay an appraiser to do an appraisal on the property. If you don't like the range that an agent comes up with, that's okay! Chat with the agent about why you think the numbers are off, and see what you guys can come up with.

Agents aren't perfect, and every real estate agent figures CMA's differently. This is a very important point!!! ***The agent with the highest CMA isn't necessarily the agent who's going to get you the best price for your home!*** The agent with the best marketing ability and negotiating skill is going to get you the best price for your home.

Think about it like this:

Two agents interview to list your home, One with a great marketing plan, and lesser CMA value, and one with a so-so marketing plan, but a value of $45,000 higher. One agent is off on the price, plain and simple. The solution? Ask the agent with better marketing to try listing at a higher price! This way you don't risk leaving money on the table, AND you get the best marketing possible.

Understanding how to best price your home is the first step to being able to get your home sold! This is Part 2 of the Savvy Seller Series here at www.teambenya.com. Be sure to check in next week when we will be posting the next edition, focusing on home presentation and staging!

Related Links:

The Savvy Seller Part 1: Your Next Home Will Be Bought or Sold Online!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com