Sell My House Pricing Strategy and Market Analysis 1

Question 1

What is a Comparative Market Analysis (CMA) used for when selling a home?

Accepted Answer

To estimate a home's fair market value by comparing it to recently sold similar homes nearby

Answer

A CMA uses recent sales of comparable properties (comps) in the same area to help sellers and agents determine a competitive and realistic listing price.

Question 2

What is the danger of overpricing a home when listing it?

Accepted Answer

It causes the home to sit on the market, accumulating days on market and stigma, often leading to a lower final sale price

Answer

Overpriced homes generate little buyer interest, and extended time on market leads buyers to question what's wrong with the property, often resulting in larger price reductions later.

Question 3

What is a 'seller's market' in real estate?

Accepted Answer

A market with more buyers than available homes, giving sellers pricing power and faster sales

Answer

In a seller's market, low inventory relative to buyer demand pushes prices up, reduces days on market, and often generates multiple offers above asking price.

Question 4

What is the 'days on market' (DOM) metric and why does it matter to sellers?

Accepted Answer

The number of days a home has been actively listed for sale, which affects buyer perception of desirability

Answer

High days on market signals to buyers that a home may be overpriced or have issues, reducing their urgency and negotiating leverage for the seller.

Question 5

What does 'price per square foot' help sellers understand about their market?

Accepted Answer

A normalized metric for comparing home values relative to size in a given neighborhood or market

Answer

Price per square foot allows apples-to-apples comparisons between homes of different sizes, helping sellers gauge where their property stands relative to the local market.

Sell My House Practice Test

Sell My House Practice Test

Sell My House Pricing Strategy and Market Analysis 1