Pricing a house right is not rocket science . . . but

By
Real Estate Broker/Owner with Pareto Realty TN #251071

DO NOT RELY ON ZILLOW ZESTIMATE!

Even your PETS know not to trust the reliability of the internet.

So . . . Why would you even fathom trusting the internet to determine the “Market Value” of your house? Through the years, internet information has misguided MANY house buyers and sellers resulting in MANY MILLIONS of dollars of financial harm.

Sellers risk selling their house and “leaving many thousand dollars on the table” (Pricing WAY below market value) or enduring excruciatingly frustrating experiences with difficulty getting prospective buyers to show up . . . or MANY showings and no offers.

Sadly, many Buyers are unwittingly paying too much and/or missing out on opportunities to buy fantastic houses and aren’t pulling the trigger because the internet “advises” them they’ll be overpaying.

The bottom line is that the internet algorithms cannot possible get these “House valuations” right because the internet doesn’t know the nuances of the local markets and more so because many of them don’t have all the data. Without access to ALL of the data, no “estimates of value” are valid.

Mr. & Mrs. SellerBuyer, There are 2 kinds of humans who can solve this problem for you. These are LOCAL Real Estate EXPERTS who experienctially know and personally reside in your Region – State – City – Burb – Neighborhood – and quite possibly your street.

These are Appraisers and REALTORS!

These 2 Real Estate Knowledgeable beings do this every day. They live and breathe real estate right there in your community . . . Might even live on your street. Odds are decent, these folks can (within a slim margin of error) offer an amazingly accurate opinion of value without even turning on their computer. Of course they’re professionals, so they will prefer to “validate” their opinion by digging into the MLS (Multiple Listing Service) and/or local tax records to provide, in writing with supporting data about recent CLOSED sales comparable to the subject property.

An appraisal will (for a fee) provide an “Appraisal Report”.

Most REALTORS will be willing (at no cost) to provide an CMA (Comparable Market Analysis). Of course the REALTOR will hope to earn your trust, so you will choose to “hire” them as your Exclusive Representative for your purchase and/or sale.

Some tips from me about pricing your house.

  • Use the Appraisal or CMA to establish a “Baseline” for an “Average” house like yours
  • Do whatever you can do to prepare the house for the market. Fix anything you know is broken.
  • De-Clutter by starting to pack anything and everything you won’t need to use for the next couple months – Move it all to a storage unit
  • Tighten up and manicure the yard – Exterior appearance is the first impression for every prospect
  • Price Points – Discuss this with your REALTOR – Buyers typically shop in a range of price ($350K-$400K) . . . and usually buy at the top end of the range. This top end is usually “a stretch” for them, so they will not even look at anything over $400K . . . If you price at $405K, your house will be invisible to the $400K shoppers. Price Points tend to be $25K increments.
  • We all KNOW that YOUR house is the nicest house in the neighborhood, but BEWARE!. “Delusions of grandeur” sometimes result in pricing too high thereby creating a “Chase the market down” spiral of price reductions
  • LISTEN to your REALTOR and DO what your REALTOR asks you to do. After all, you don’t argue with your Doctor about your medical treatment, do you?

If you don’t know a REALTOR, connect with me Barry@ParetoRealty.com.

Wherever you are in the world, I can help you find your quintessential real estate professional.

This pricing conversation has potentially the most potential for conflict in this process. We all know the stakes are VERY high.

So . . . Will you tell me again why you could possibly think it’s a good idea to rely on the internet to determine the “value” of your house?

Posted byBarry OwenNovember 15, 2019Posted inConsumer BlogLife Rhythm WayPareto RealtyReal Estate ProfessionalsTags:EditPricing a house right is not rocket science . . . but

Published by Barry Owen 

Strategist-CEO of Pareto Realty Real estate sales Professional Inviter-Facilitator-Practicer of Open Space Technology Opening safe space for people & organizations to self-organize around issues & opportunities BarryOwen.US Invite-Listen-Love 

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Barry Owen

Founder
Principal Broker
Pareto Realty
Nashville, TN

615.502.2080
www.paretorealty.co  
Call me: 615-568-2123
email me: barryo@comcast.net

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Rainmaker
815,655
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Good advice for sellers and buyers here on knowing if a house is priced right and all good reasons not to trust the internet.

Nov 15, 2019 09:52 AM #1
Rainmaker
2,601,672
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

In the last several days, I watched A PBS Frontline documentary about AI (Artificial Intelligence).  It addressed the issue that many jobs and careers that exist today will likely disappear.  I think we are seeing a little of that encroach on the real estate industry already.  And, like you point out, algorhythms don't always get it right.  In fact, I've witnessed several instances where they got it terribly wrong.  

Nov 15, 2019 01:23 PM #2
Rainmaker
1,719,858
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

this is great advice for sellers on pricing - and I love the picture - 

Nov 18, 2019 06:56 AM #9
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