Cindy,

I would be skeptical about any price under the assessed value. Getting a third opinion is a great step. Also, take a close look at the expired listings. This will give you some additional insight into listings that failed.

Take a close look at the sold and active listings and try to objectively judge your property in comparison (like you were moving here and buying a new home). And the best advice you have had so far .. price right from the start. We are in a weak market for sellers.

Scott.

Hi Cindy
You have had some good answers to your question. As you probably know this is not a sellers market. The fist thing I would do, is check my motivation for selling. If possible keep your home of the market for a while. This morning the feds gave Fannie may/Freddie mac several trillion dollars to put into the market. This will help greatly in time. Let the market stabilise then get back into selling mode.
I live in the Boston Harbor area. I know there is a vast difference between a lot of the homes and a CMA can be very difficult. Its all in the details in this area. Location quality, surroundings, facilities, view all have to be taken into account. Go through the CMA's check the variations and details between the comparables. At the end of the day it is your choice. More help is always available.

Hello Cindy,

Wow, that is quite a difference in recommended selling price. It is fairly typical for a market value to be a bit above the assessed value. Hopefully both those agents brought information about comparable homes within a close proximity to your home. The comparables should be similar in square footage, year built, lot size, number of bedrooms, and style of house. I hope you received some kind of market analysis from each agent. That would give you a good comparison. It's my opinion that both estimates should have been within a $20,000 price difference (not the $100K you mentioned). I hope the third agent brings you information you can use. Good luck. Christine Baker, Windermere, 253-465-1319.

I'am in the process of listing a house 76th in Boston Harbor so I know the area well. I would have both of the agents give you the information that they gathered so that they could tell how they came up with the pricing. Remember that the assed values in the county all took a steep jump this last year. I hope the agent that valued it on the low side did his home work it sounds like he didn't. The big thing in finding an agent is to find someone you trust and some who is giving comps near your home.

I will know more about your home when I arrive the market conditions and what I( think the house will sell for. Also some agents price homes high so they can get the listing and then lower the price when the house just sits. The first three weeks on the market will tell you whether you have the right price.

I will do a free CMA for you know strings attached. Its a tough market but Boston Harbor is a great area. Good luck!!!
Asa Shigley 360 791 3844 or ashigley@windermere.com

Goodluck and price right from the start.

Cindy,

Doing a market analysis is part science and part art. No two real estate agents or appraisers will likely come up with the exact same value. The values should, however, be fairly close. So either one of the two agents is way off, or the value lies somewhere in the middle.
A proper market analysis should show the comparable properties that have been used, and the agent should be able to explain why he/she included those properties, as well as the formula for calculating the estimated value of your home.
I work as a partner in a team of three agents here in Olympia. One of the benefits of having a team is that we each do a market analysis of any given property independently of each other before we present it.
We'd be glad to work up a detailed market evaluation that will give you a good idea of your home's value.

Feel free to contact me.

Sandy

Cindy
I do not know your local market (disclaimer).
I am curious how the Realtors presented their findings. Did you discuss comparable properties?
Did they show you the properties they used as comparables? Did you agree with their analysis?
Not knowing the answers to these questions I'll just give you a quick overview:

1. In a downward trending market (and many in the US are flat or downward trending) sold listings, which are usually the standard comparable, may not accurately reflect current market values. Properties are marketed, they received offers, go through an escrow process, which can require 60-120 days until they are reflected in SOLD listings, so the data no longer reflect the CURRENT market. In this case current active listings and pending properties are probably better gauges of value.

2. In an upward trending market, the opposite occurs. Sold property UNDERSTATE the value, and again, ACTIVE listings are probably a more accurate picture of market value. One might even need to ADD to the price to avoid too many offers.

So, not knowing your market is one thing. The other issue is that I do no know your property, nor the comparables. Location and condition are the primary values factors, assuming lot size and living square area are similar. If it were me I would take the comps and go out and look at them myself.

With some sellers, once we agree that we can work together, but we still don't agree on price, I will take them to look at the homes with which they will soon be competing and ask them what they think.

Remember, most buyers want value, and all buyers have a budget. Buyers shop in brackets based on their budget, so an over-priced listing will be viewed by view buyers and their Realtors. About 90% of the time the buyer will first see the home they buy with a Realtor. So TWO people need to believe your listing is worth seeing. The Realtor who works as the buyer's agent, and the buyer.

In our area statistics show that listings that sell within the first 30 days sell for , in January, 99.7% of asking price. If you wait to 120 days, that drops to 93.6%. So in truth, if you have an active market place, it is unlikely that an under-priced listing will be allowed to sell "under market". Given the changes in mortgage lending standards the pool of buyers has decreased. Due fewer buyers the number of active listings (we call that Inventory) has increased. If you take the total Inventory of Comparable homes and divided it by the number of comparable homes sold during the last month, you will have the Absorption Rate. So if there are 50 3 bed, 2 bath homes in the $200K-$249K range, and five sold last month, if all factors remain the same, it will take 10 months to sell. Generally the "good deals" go first, so that does not mean price. Buyers want value- appliances, help with closing costs, etc.

The list price is a sales tool to attract buyers and their agents. Once you have offers you can negotiate. That is when a Realtor earns their commission. Helping you project to the market the value of your property so the buyers and their Realtors can clearly see what you have to offer. Then when the offers come in, handling those offers in a way that maximizes the liklihood of closing escrow. Homes sell homes. Realtors close escrow. There is a BIG difference.

Good luck

Cindy,
I would suppose the third agent is going to be similar to one of the two estimates received and that will offer you some clarity, but if not...call all the agents and tell them that the prices are grossly distorted and you have not been able to get a clear idea of how to price your home. Could they offer some explanation to how they arrived at the amount that they did.

I am conjecturing that most likely they are not using the same comparables to arrive at a similar price and that with a little review you might be able to get a bit closer to the question you were seeking.

Typically our margins as Realtors when preparing a market analysis is to give you a guideline within 2-3% of the potential selling price. So there may be some fluctation and difference but it should only be within these percentages. I'd be interested to hear what the third agent comes up with...let us know.

Best Wishes