Setting the listing price for your Ocean City property is one of the most important steps in the home selling process. If you set the price too high you will have limited showing activity and your home will sit on the real estate market. If you price the property too low you could be leaving thousands of dollars on the table. A well priced home will generate competitive offers and sell within a reasonable amount of time for the highest price possible. The primary factors that affect property values include:
Local market conditions
Age and property condition
Property upgrades and renovations
Recent comparable sales
Location and views
Number of competing listings on market
Overall economic conditions
Homeowners association health
In order to determine an accurate listing price for your property you should have a Comparative Market Analysis (CMA) prepared by a local Ocean City real estate agent. The CMA determines the property’s value by analyzing recent comparable sales, pending real estate sales, active listings, off-market properties and current real estate market conditions.
Recent Comparable Sales
The first step in the home valuation process is reviewing the listing data for similar properties that have recently sold. The sold price of comparable Ocean City properties that have recently gone to settlement will be the most heavily weighted factor in determining an accurate listing price. The sold comps will provide a reliable baseline price range to begin the valuation with. I will then make adjustments to this baseline price range based on your property’s condition, size, upgrades, unique features, views, etc.
The next step in the process is to review the listing information for comparable properties that are currently under contract. There is a reason these properties went under contract and we want to leverage that information to our advantage where possible. This is valuable information as it provides direct insight into what current active Buyers in the Ocean City real estate market are looking for. I will check the baseline price range derived in the previous step against the listing prices of these pending sales to ensure they are aligned.
After I have researched the recent comparable sales and properties that are under contract I will review the listing information for similar Ocean City properties that are currently on the market. These are the properties we will ultimately be competing against and we want to ensure we are properly positioned amongst them. I will primarily be interested in “days on market” for these listings, as well as any price adjustments that have been made. I will compare the listing prices of these active listings to the price range we established in the previous steps to ensure our pricing strategy is inline with them. It is worth noting that active listing prices do not factor too highly into the overall valuation as they haven’t sold and are simply “asking prices”. The active listings are used for positioning on the real estate market to ensure your listing gets maximum exposure and is one of the first to sell.
Lastly I will look at the comparable properties that were removed from the Ocean City real estate market for one reason or another. There is a reason these properties did not sell and we want to ensure we do not make the same mistakes. Properties that do not sell are typically overpriced, in poor condition, poorly marketed or some combination of these factors.
As with most anything, proper preparation at the beginning of the home selling process pays dividends in the long run. A well researched and accurate Competitive Market Analysis will provide you with the information you need to strategically price and position your home on the real estate market. This will ultimately result in your home selling for the highest price possible, within a reasonable amount of time.
If you would like a Competitive Market Analysis prepared for your home or condo simply fill out this short Property Information Form. I would be glad to discuss the sale of your home or condo with you in greater detail. Feel free to contact me directly anytime at 443-614-9179 or via email below.