Setting Your Price

The most important tip for sellers trying to price their property is to see things from a buyer’s point of view. Price is often the first thing buyers look at when comparing Newport Beach homes for sale. Needless to say, if your price doesn’t make the cut, your home won’t even warrant a second look, no matter how nice it is.

Pricing for Newport Beach real estate can be tricky. Set it too high and you won’t make it to the shortlists; too low and you’ll end up shortchanged. However, with a good agent and some careful analysis, you can come up with a price tag that’s fair to both you and your buyer.

Pricing Factors

Several things affect the price of Newport Beach homes, but one thing’s for sure: your own purchase price has little to do with it. No matter how much you pair for your home, unfortunately, your price will depend for the most part on the Newport Beach real estate market. Some of the most prominent factors include:

• Comparable sales. How much have similar Newport Beach homes sold for in the last six months? Did these include furnishings and appliances?
• Market conditions. Are home prices in Newport Beach CA going up or down on average? How many homes similar to yours are currently available?
• Offering incentives. What are the average closing costs and loan costs for other Newport Beach homes?

Comparative Market Analysis (CMA) And Appraisals

The information listed above won’t be shown on public listings. This is where your agent comes in. He or she can provide you with a comparative market analysis (CMA), which gives you a good look at the current market conditions and helps you arrive at a reasonable price. Most CMAs take into account Newport Beach homes that have been sold, are currently for sale, and failed to sell.

Appraisals are a common alternative to the CMA, especially for unique homes. Unlike the CMA, it will only consider past successful sales, so it won’t be a very thorough picture. However, it can come in handy in cases where it’s hard to put a price on your home. Some of the most common situations are:

• Unique property. Homes that are hard to classify into conventional property, or are uncharacteristic of other Newport Beach homes in the area, may require a formal appraisal.
• Lack of recent activity. For example, some Newport Beach CA neighborhoods haven’t seen much activity in the past few months and don’t offer much basis for comparison.
• Co-ownership. If the home has more than one owner and the owners cannot agree on a price, an appraisal can help them reach a decision.

Note that your agent’s job is to provide the data—the decision is still yours to make in the end. However, your agent has a better understanding of the Newport Beach real estate market. Working together can give you a better idea of how your home measures up against other Newport Beach homes for sale.

A Note On Asking And Selling Prices

A lot of Newport Beach homes are tagged with an “asking price.” However, most buyers’ agents take it to mean that you’re not really expecting to get it, and they’ll negotiate aggressively for a lower offer. “Offered at” is a much stronger term and suggests that you’re firm about your rates.