Elizabeth, you just hit the nail right on the head. An agent in my office recently said that they were listing homes $10,000. to $15,000 over what they thought they were worth and the homes just kept flying off the shelves. He said that he was always concerned whether they would appraise. I told him that this is just what drives the market. The more the appraisers see houses coming in with offers higher than list, the more inclined they are to adjust their appraisals to reflect the current market. And as you indicated, in this market, almost everything is subjective. Home pricing is more an art than a science.
When a seller in Sacramento asks what an agent thinks their home will sell at, and that agents starts laughing, the seller might think the agent is a bit off her rocker. The agent isn't nuts. It's the market that is crazy. You've got all different types of pricing.
There is the price you might list the home at when you put it on the market for sale. There's the price a buyer might offer, and another buyer and another buyer. There is also the price an appraiser will determine the home is worth. All of those prices are different. So it's not a cut-and-dry answer when a seller wants to know what we think is a good price for a home.
It's subjective. It's also analytical. There is an approach that this Sacramento real estate agent has used with some success and other agents are offering this strategy to their clients as well. It's called Pricing Ahead of the Curve. Read more in my professional blog today about Pricing a Home Ahead of the Curve in Sacramento.
Certified HAFA Specialist
Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
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Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.