Your Realtor should help you set the right listing price for your home. The “Market Price” for your home is what someone is willing to pay for it at a given time. When setting a listing price for your home, there are many things that need to be considered. Things like size, location, amenities, age, upgrades, condition, etc. Then these things need to be compared to recent sales near your home. The best way to know what someone is willing to pay for your home is to check what someone paid for a home like yours within the past few months.
Most Realtors will do a simple CMA (Comparative Market Analysis) which includes a small sampling of homes that may or may not compare to your home and situation. For instance, comparing homes that were sold as a short sale or foreclosure when you are selling your home for a completely different reason will provide a much lower listing price. Certain situations, such as divorce, death, job loss, bad condition, etc. will cause a home to sell for less than market value.
In order to get a more accurate and true market value for your home, you must delve deeper into the comparables to check for, not only like physical attributes, but also for the reasons they sold.
Using adjusted area square feet is a very accurate way to provide a market value for a home when the comparables are very similar. However, figuring out the adjusted square feet of a home is not so simple. Often the adjusted square feet shown in listings are incorrect. Most of the time, the square feet given in the listing are either for the total building or the living area square feet. When using this method, your Realtor must take the time to research each comparable to obtain the true adjusted square feet as calculated by the County Property Appraiser’s Office and recalculate the price sold per square foot. Unfortunately, most Realtors don’t take the time to calculate the true sold price per square foot and end up with incorrect market values for their listings. Whether they are too high or too low, this is bad for the seller. Too high and your home won’t sell, too low and you will leave money on the table.