Just as the word describes, “comparative” means that Jackie must find properties as similar as can be to the Sellers home, and then do adjustments for whatever differences there may be. In today’s market where the competition is extremely challenging, pricing a home at market value is key to not wasting yours or a Buyers time. You may have seen many homes listed far below what they ultimately sold for, and this is not because the home was incredible, but more often because the home was grossly underpriced. There is a school of thought out there that if one prices a home well below it’s market value then you create a feeding frenzy and get far more than if you priced it closer to it’s worth.
This may backfire and cause the Seller unnecessary stress due to a lack of an adequate amount of offers on offer day. This is usually due to the fact that Buyers have become weary of the “frenzy” and if they have an excellent agent who does their due diligence on your home, who will advise buyers against a bidding war as they suspect the home will sell well above advertised and/or what they can afford.
This could lead to fewer offers than anticipated, taking the home off the market or adjusting the price to a more realistic and market related price. This in turn generates a cynicism about the home and a stigma may develop.
Jackie believes that pricing a home at or very close to market value attracts the “right” buyers and doesn’t waste anyone’s time. At the end of the day, buyers and sellers happiness is key, and the home sells at a great price without the drama that grossly underpricing a home can create.