How Do You Determine the Value of My Home?

Tammie, I agree that active listings should be a part of the CMA. I also think pending listings should be a factor as well. 

One of the values a Realtor brings to the valuation process is knowing and I mean truly knowing the market.  I can show you three closed comps and three actives on paper but when looking at the raw data can you tell me which one of the properties was involved in a triple murder and is now stigmatized?  That is why our  roles are so important.

Tammie,

Nice post. I agree with your post and your follow up comment as well.

"Similarly, the best marketing and exposure in the world won't sell an over-priced home".

How true!

No matter how you slice this equation the bottom line is motivation. if the seller is in denial about the market it does not benefit a real estate agent to promote there illusion by taking a listing where there is no motivation and usually pricing reflects how motivated the seller is to get his/her home sold.

Good post today, thanks for getting it out to us today.  I think it would be good for all sellers to read this post when marketing their property. 

Patricia/Seacoast NH & ME

Tammie - excellent post. I agree with you about using the expireds as a gauge, I do the same thing.

Tammie, the key statement for me is that it's the Realtor's job to sell the home, not price it; value is determined by the market. This is what sellers need to understand. Thanks for your post.

Actually, as bankruptcy trustees, probate attorneys, and family law lawyers will attest - based on their own practices - the safest, must defensible market value obtainable for a home (will stand up in court) comes from an honest to gosh, state licensed APPRAISER.

Note I am not an APPRAISER, but both my broker owners are.

Agents tend to focus on sales price.  Market value is a different concept.

Tammie, 

So true, the worst thing a new seller can do is price it high to give it a try in a declining market and then end up getting less than the first low number they didn't like when this process started. 

All the best, Michelle

PS - Can always suggest they get an appraisal to start prior to listing!

Tammie. these are all words to live by.

The market determines the property price and value is so true. I can't stress it enough to my sellers. Thanks you for the great post

We have to use active listings as a tool. You have to know where your competition is, or you're doing not painting the whole picture. Great post!

Good post Tammie, it is just common sense but when it is our house emotions get in the way.  Our house is only worth what a buyer is likely to pay.  And if they have good Realtors, they will pay what is in line with what has sold in that market.

Expireds and Withrdrawns are important to show prospective sellers.  Many agents don't look beyond active and sold when prepping the CMA price.

Tammie, great post! I use expireds as an excellent gauge as well. Just "Sold" and "Active" don't paint a very accurate picture.

I think that the pending listings are more telling of where the market is truly going, even more so than the current active listings.  Especially the days on the market for those pending listings.  I use sold data that is no more than 60 days back, if there are no sold comparables in the immediate area, I choose another area that is similar.  Too much can change in a couple of months, so going back further for sold comparables does not always make sense.  I do not really use the expired listings at all, but if there is a high occurence of them, I could see where you might want to consider them after gauging their condition. Great information!

Great post Tammie,

How do you treat distressed sales in the CMA?

thanks for the post

a lot of great ideas and thoughts

cheers to you