31 Jan Pricing a home is a blend of Art and science
According to a recent Forbes Article, Pricing a home is a blend of Art and science.
Particularly in a market, in which both sales prices and sales volume have softened from month-to-month, analysis, while important, can only help so much. While we know a sale of a similar property took place three months ago, how do we compare this price to TODAY’s property value? Values in today’s market change from month-to- month. Prices do not become public until after a sale closes, and since a period of 45 – 90 days often elapses between contract signing and closing, sales prices can be out of date by the time they are public
In this environment, what are agents, sellers, and buyers to do? The most useful comparable sales in a changing market are ones which have gone into contract recently. Many asking prices, especially in a changing market, are aspirational rather than realistic. They don’t provide useful guidance as to proper pricing; in fact, often they present a cautionary tale in how pricing incorrectly can lead to months on the market. This pricing strategy can demonstrate what NOT to do.
Since data is changing quickly, We want to offer to you a way for you to instantly track what is happening in your neighborhood! Receive a free instant alert of what is happening in the real estate market for your neighborhood. www.understandmyneighborhood.com If you want a more personal property valuation, please call or text! As always, your Real Estate Resource!