Know Your Competition
Selling your home without knowing your competition is a common mistake that can have you on the ropes before you know it. You need to understand the pricing, condition, location, quality of marketing materials, deficiencies, and the legal ownership of your competition.
Classifying properties: Just like everything else, you need to compare apples to apples. So is your home an apple, an orange, tangerine, or other? Overall home size, lot size, number of bedrooms/baths are some of the basic criteria used but there are many other factors that must be considered to classify yours and other homes in your neighborhood.
Condition of competing homes: This obviously plays a big part in how quickly a home sells and the final sale price. Other homes may be similar in size with similar lot dimensions and number of rooms but the condition of the home and the quality of materials used will certainly need to be considered.
Marketing: How were other homes in your neighborhood marketed? Were homes listed using high quality photos, videos, virtual tours, floor plans and other commonly used materials? What type of wording was used in those materials to describe the home? Knowing how other homes were marketed provides great information about the types of buyers they were trying to attract and also the level of quality you can expect from the agent.
Pricing: Once your home is classified, how are the other comparable homes in the neighborhood priced? More importantly, at what price did comparables sell? Looking at recent sales in your neighborhood helps to set a benchmark for your home.
I consider many other factors when assessing a home but this gives you an idea of some of the fundamentals when looking at the competition. Read more about pricing in the next article.