Pricing is as Much Art as Science.... do you care to dream.
With resale the battle to sell the home is to price it correctly. The challenge: Sellers want as much as the last sale. But in today's market that's not as guaranteed as it was when buyers were making offers at the drop of a hat and sellers were more than eager run with the cash to the bank or often to their next home.
Thus, pricing is the key. There are only a few ways to price property for sale and sellers who don't want to wait around on the sale of their home need to adapt to the accepted modes of pricing and get over the fact that the VALUE of their house may not be worth as much as it was 12~24 months ago.
Pricing a home:
1) The first and for the most part most popular -- the comparable method. By pulling up only the sales of your particular model, the Realtor can determine a trend price for your home. The challenge in a slowing market is that your particular model may only have three sales in the last year. Such a low number of houses selling does not really create a trend line, especially if the last sale was 6 months previous. Thus, you turn to the second pricing model.
2) Dissected your property into several aspects such as style of home (split level, colonial, etc.); number of levels; number of bedrooms and baths; extra rooms; year built; square footage; parking; lot size; level of renovation and more. Appraisers might use terns such as â€œSuperiorâ€ or â€œInferiorâ€ and assign a value. Then the averages on these parameters are tabulated and you'll have a target price. Keep in mind to remove the highs and lows.
3) Finally, another way to price your home is to come up with model based on the â€œTax Assessmentsâ€. Here is where science meets reality. Note, Sellerâ€™s who are engineers or analytical in nature will dig this. Unfortunately, as this one takes a little bit more homework and data mining, and is downright tedious, it can present one of the most accurate pictures of home values in your community. First pull up all the sales in the community in the last 3-6 months, the more the better. Tabulate the sales price total (let's say it comes up to $9 million) and then tabulate the tax assessment total (our model will use $10 million). Note: use assessments for the same year. Divide the tax assessment into the sales price and you come up with a tax assessment-sales price ratio. In this case, the community ratio is 0.9. Multiply your tax assessment by the ratio figure and it will determine your target asking price. For example, if your tax assessment is $400,000, multiply it by 0.9, you'll arrive at $360,000 as a target asking price. Again, be careful to pull out the anomalies that represent overbuilt properties. The largest, biggest house in the community could affect your price, as well as the pre-foreclosure sale. The beauty behind this method is that assessments are always being revised to follow the market. If you feel that you are neither being under nor over assessed as compared to your neighbors home, then embrace this method.
If you really want to try something for fun, ask your Realtor to create a scatter plot of Sales and Assessed values over the past 5 years. The result will be a visual representation of the relationship over time between the two. In almost every market, state, city and area, the averages converged and is now upside downâ€¦. Assessments exceeding sales prices. This is normal. Just understand the relationship and you will be that much closer to selling your property than your competition.
FYI, Codo fees have nothing do do with value. They represent a % of the common area expenses for the project. For example, if the unit has a 3.5% common interest and the expenses are $100K (common heat, water, sewer, maint. etc) then the yearly fee is $3,500.
Hope this helps.