How to Price Your Home in 2007

Being a Realtor for 24 years, I had my share of challenging moments. I have to admit, I am up to be challenged. I pride myself to be able to solve problems and keep the process moving. Having said that, one of the most sensitive topics to a Seller is pricing of their home. For the most part it is their largest asset they have and also tied into this is the emotional attachment they have to their home. My job as their counselor, is to do a good job and show them the current market trends. I do this by providing them with solid documentation of comparable properties within the same geographical area and similar amenities. I prefer to use settled properties within 6 months of closing.


If recent comparable sales are not available based on the amount of sales activity or a rural setting, I can extend the time line up to 9 months. Doing this can on an occasion be problematic, even if you have lots of supporting information to support your price range. The seller may want to go much higher. Let me give you a few scenarios.



Seller: I went to Zillow.com and I found out what my home is worth "X" amount....Well computer generated values are relatively new However recent statistics show they can be off by as much as 23% plus or minus. I am sure down the road the software will become reliable. This is what Zillow.com conveyed to Realtors' .."The Zestimate home valuation is Zillow's estimated market value of a home, given the data we have available. It is a starting point in determining a home's value; it's not an appraisal. (After all, you've been in the house and we haven't!)".



Seller: My neighbor got what they wanted last year! Last year is last year. I will research and find out exactly what they received and research if their was any closing costs paid by the Seller on behalf of the Buyer.



Seller: I like to try listing my home for "X" which is higher. You could, but here is where you may have some trouble. The most critical time in any listing is the first 21 days of the listing. This is when you will get your blast of activity. So you have to see the wisdom of pricing your home correctly from the beginning. It is quite possible if your home is listed outside the recommended price range, you may have no or little activity.



Seller: My neighbor said my house is worth "X" amount. Well unless your neighbor is going to purchase your home, it is a moot point.



Seller: I agree with your value, I would still like to try a higher list price....You can, but this may be a more prudent approach. How about investing $350.00 for an independent fee appraiser to come out to appraise your home. Please be advised a buyer going for a mortgage will have an appraiser from their lender to value your home. With this market in a correction mode, I have seen appraisal's coming in under value. The Buyer has the opportunity to walk away from the sale, or the Seller adjusting the sales price to match the appraisal. The worst case scenario is the transaction can falter. In closing, I am not saying it is doom & gloom for the Seller. What I am honestly trying to convey is you have to adapt to this current market. In turn you will receive a fair value for your home, and your home will not be on the market for an extended time. The great thing is, you get to move on with your life. My final thought, Zillow.com does not know the neighborhood, I do and possibly your neighbors. Have a great day!