Attention Sellers and Buyers I’m going to let you in on a real estate secret. I hate to admit it, but pricing a property is not an exact science. So how do we do it?
Agents (and appraisers) look at comparable sales in the same neighborhood (LOCATION), perform a Comparative Market Analysis, evaluate price per square foot and add or subtract value based on condition. The next step is to consider current market conditions, the seller’s sense of urgency, or lack thereof, and current inventory.
I’ve always found the most valuable asset in pricing a property is familiarity with the proof–recent sales, and the competition–current listings.
In order to know your market you must see the product. It’s good to read about it, look at photos and watch virtual tours, but if you want to remove the stress and the guess from establishing a spot on list price I’ll share my secret with you—PREVIEW, PREVIEW, PREVIEW.
Some agents never preview and consider it a waste of time and gas. I disagree, and that’s why Tuesdays are devoted to attending broker open houses with my clients’, both buyers and sellers, needs clearly in mind. Previewing allows me to speak intelligently about a property to prospective buyers, and it allows me to offer a suggested listing price to prospective sellers with confidence. I can’t imagine listing and selling without previewing the product.
Whether my clients accept my advice or not is another story post!