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The Comps Don't Lie: Determining Market Value

By
Real Estate Agent with RE/MAX of Spokane 77217

As Realtor's, we are asked every day to give our expert opinions on the current market on properties.

This is done simply by researching the recently SOLD properties nearby that are comparable in style, age, and size (comps) . Other factors play into value such as location and condition.

I use a system called "Tool Kit" which helps me put together a professional presentation with information about my company, marketing, suggestions for sellers and specific information on each comparable property. The properties are carefully researched and chosen from the MLS and uploaded into the presentation.

It is critical when pricing a home for sale that you carefully consider the recently sold comps. There may be homes currently  listed for sale, or expired listings that are at what seems like a more attractive price to sellers (higher) . But the proof is in the pudding. What have similar homes SOLD for? Typically if you want a quick sale, then you should price right on that number. Adding " padding" to the price may deflect saavy buyers who don't want to deal with sellers who over price their homes.

In our city, last year- 50% of the homes that were listed for sale, NEVER SOLD. This is incredibly telling.

The comparable properties, if chosen correctly- will never lie. Fair market value is not determined by sellers or Realtors but by the market.

Pricing a home right is the KEY factor  to procuring a sale. Other factors may be:

  • Marketing and Exposure (Realtor/agency)
  • Location
  • Condition
  • Terms
  • Size
  • Style
  • Upgrades

 

 

Posted by

BethAnn Long, REALTOR, CRS, e-PRO, CLHMS

RE/MAX of Spokane

509-362-4607 ( cell )

e mail : bethannlong@gmail.com

 

Spokane Homes for Sale :

my website www.BethAnnHomes.com search the Spokane MLS here!

 "BethAnn in Spokane" 

 

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Comments(5)

Robert The Earl of Real Estate
St Pete LUXE Living Group - Saint Petersburg, FL
The Earl of Real Estate

Is ToolKit a package or an online service?  Just curios because your logic is spot on as far as I can see from your posting.

Mar 18, 2010 01:41 PM
John Thomas
E3 Green HOMES - Boulder, CO
EcoBroker, MSEE, MBA

I agree...comps almost always tell the truth. I say almost because when it comes to 'green' homes there is so little data that comps simply do not tell the whole story. And the reason is there are next to none available in most places. And the properties used as comps are often standard homes.

Mar 18, 2010 01:45 PM
BethAnn Long
RE/MAX of Spokane - Spokane, WA
Realtor, CRS, e-PRO, CLHMS Spokane Wa Real Estate

Robert, I use toolkitcma.com in conjunction with our MLS.

John, that could be considered an upgrade I guess.

Mar 18, 2010 02:16 PM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Hi BethAnn,

You are soo right.  Pricing based on the most accurate sold information makes all difference.  I do look at what the Active comps are going for too though, just to make sure we are positioned under them to sell faster for a higher final price. 

Mar 18, 2010 03:25 PM
Jill Schmidt
Aurora, CO

I don't know toolkit - but you are so right to use recent comps.  I find it amazing that listing agents will say to me, "but last year one sold for xxx". 

Mar 19, 2010 05:33 AM