How Do I Price the Property?

Pricing is one of the keys to a successful sale of any property.  Price it too high in anticipation of someone making an offer and it may be that no one will even look at it.  On the other hand, you don’t want to price it too low and leave money on the table.

Any real estate agent can run a CMA for you.  A CMA (Current Market Analysis) will show what similar properties in the area have sold for within the past 6 months to a year.  It will also show what properties are currently on the market; otherwise known as the competition. 

There are software products available that will let you do a CMA yourself.  However, we would recommend that you contact your favorite real estate agent and ask them to do it for you.  Chances are they will be listing the property for sale and you will want their input.

Another way to look at pricing is to put yourself in the buyer’s shoes.  When you purchased the property you went through several calculations to determine if the property met your investment goals.  We would recommend doing that again to see if the price you are considering would meet your goals.  If it wouldn’t, you may want to adjust the price.

The Investment Property Worksheet available below should help with those calculations.