Home Selling in 22903>Question Details

Sunnygrrl, Home Buyer in Charlottesville, VA

What sort of math, formulas do sellers and realtors use when when deciding how to price a home?

Asked by Sunnygrrl, Charlottesville, VA Thu Aug 7, 2008

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6
One key ingredient not mentioned is current market conditions and the amount of competition (inventory) as it relates to the property being priced. Knowing this comes from being experienced and knowledgeable with the local area and market the property is in.
Web Reference: http://www.LoudounScene.com
1 vote Thank Flag Link Thu Aug 7, 2008
I think that most savvy Realtors use all active/under contract/sold listings in the general area that the home is located in. The price per square foot needs to be competitive with other similar homes, as does the general condition of the home. The days of "a feeling" or "guessing" are gone, IMHO...its all about the numbers. Another telling stat is the "days on market". If a recent home nearby sold for a bit less than the average days on the market, then that listing agent priced the home right. I always say to my sellers "I've been a Realtor 14 years....how long do you want to be a seller"? Hopefully they will realize the value of their time and price the home competitively.

Have a great day!
Susan Veach
The Susan Veach Team
RE/MAX Assured Properties
0 votes Thank Flag Link Mon Aug 25, 2008
hi,
You need to honestly compare this property to like kind properties in the same area and then place the pricing where it fits into this market created scale. Use recent sales first and then for sales.
All the best,
Jame Joseph
0 votes Thank Flag Link Thu Aug 7, 2008
Sunnygrrl-- No math or formulas. Just experience (and gray hairs doesn't always mean experience) :) Sellers often have an amount that they want to get out of the home in order to purchase a NEW home. Agents look at this number and see if it's realistic based off of what has been selling in the area to see if it's too high or too low. If you have found a home and you want to make sure it isn't priced too high, ask your agent to give you a list of homes that have recently sold in that area so you can see what price point your new home lies in. Good luck and happy house hunting! If you don't have an agent already, I would love to assist you in your search! Visit my website below and look at the "Buyer Beware" section so you at least know the potential pitfalls. Hope this helps!

Valorie Ford
Keller Williams Realty
http://www.nakedrealestate.org
0 votes Thank Flag Link Thu Aug 7, 2008
Hi! Thanks for the question. Probably one of the most asked and most relavent in a slow market.

Charle's answer hits it right on the mark. But if you want more discussion on the matter of pricing, please feel free to read "Top 10 Homes That Aren't Selling In Charlottesville--and Why" GoTo:

http://kwsulton1.featuredblog.com/?p=28

Thanks again for the great question!

Fulton Gaylord--Associate Broker
Keller Williams Realty
434-220-2228
Fulton@kw.com
0 votes Thank Flag Link Thu Aug 7, 2008
Most will do a CMA (Comparative Market Analysis) show recent sales, pending and active listings. We then look at averages and price per square foot. Now the real key is to know the specific market/neighborhood and to personally look at current homes listed to see how they compare in quality. It is not just about price.

Hope this help?

Best regards,
Charles A. McDonald
(cell) 434-981-1585
Associate BROKER at RE/MAX Assured Properties, Licensed to sell Real Estate in Virginia
ABR, e-PRO, SRES CAAR Professional Honor Society, CAAR Technology Group
0 votes Thank Flag Link Thu Aug 7, 2008
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