What Are They Asking for That House?

 

Whether you’re a seller or a buyer, it’s important to know the science behind determining the value of a home. When selling your house, you want to know the sweet spot  that will lead to a quick sale without leaving any money on the table. If you’re buying, it’s important to know what a reasonable value is of the home so that you don’t overpay in a slow to normal market, and you don’t continually get outbid in a normal to heated market. How does a Realtor® know what that price point is?

Know the local market, the specific absorption rate, and where on the market pace continuum that location falls. Your agent should have access to the most accurate, localized, and current data resources – even if the agent has to pay extra to have that access. I subscribe to a number of data sources that provide up to the moment information for accurate pricing to assist buyers and sellers.

Know your competition. Within your desired location are there more buyers than sellers, or is the reverse true? Is inventory abundant or scarce? This is often a function of the price range within which you are buying or selling. For instance, in the Chandler/Gilbert area right now, homes under $300,000 and the luxury home market are seeing high levels of competition. They are selling quickly often with multiple offers. Homes in the middle range, tend to have higher days on market with fewer buyers competing for those properties.

Understand how comparables work and how they’re being analyzed. Comparable reports are as important for buyers as they are for sellers. Those reports can be automated or done manually. They can be done with depth and detail, or represent a snapshot overview that misses important value markers such as single story vs. two story variances or the specific orientation of a home that may affect comparative value. I arrive at accurate pricing using three different methods of comparable reporting giving buyers and sellers confidence that they are getting what they want at the best price possible.

Understand what’s most important to a buyer or seller. Determining the proper price must take into consideration what priorities exist. I’ve worked with sellers who were less concerned with price than the amount of time it would take to sell their house and move on to the next thing. The pricing strategy in that case, depending on the local market, may look very different from the one used for a family for whom every dollar is the priority.

Know the most important formula for understanding the value of a home. Ultimately a home is worth what a buyer is willing to pay for it AND what a seller is willing to sell it for. I can help you get to that point efficiently

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