Next, you must review comparable homes currently in escrow to those that recently sold. This will give you an idea of what buyers most recently were willing to pay.
- Consider how quickly comparable homes went into escrow by looking at the Days on Market (“DOM”) count in the MLS. If a property entered escrow very quickly (under 30 days), it was likely accepted near or over the asking price, which gives you a sense of today’s going price of comparable homes.
- Consider whether comparable homes currently in escrow have more or fewer Days on Market than recently sold comps. If it seems that comps in escrow have been on the market for longer than recently sold comps, the market may be softening, and you may want to adjust your strategy. If comps are going into escrow more quickly than recently sold comps, the market is heating up, and that, too, should be a part of your strategy.
- Are you noticing price reductions for either comparable homes in escrow or recently sold comps? If so, this suggests homes were overpriced given their features, and can give you an idea of what’s considered fair market value for comparable homes.Take note and make sure you don’t make the same mistakes in your feature evaluation, preparation, or pricing strategy.
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These posts are part of my “Demystifying Pricing for Sellers” series: