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Pricing a Property Involves Much More Than Simply Pulling a Number Out of a Hat

By Norma Toering Broker for Palos Verdes and Beach Cities

Real Estate Broker/Owner with Charlemagne International Properties BRE# 01147470

October 27, 2008 11:24 AM

Attention Sellers and Buyers I'm going to let you in on a real estate secret. I hate to admit it, but pricing a property is not an exact science. So how do we do it?

Agents (and appraisers) look at comparable sales in the same neighborhood (LOCATION), perform a Comparative Market Analysis, evaluate price per square foot and add or subtract value based on condition. The next step is to consider current market conditions, the seller's sense of urgency, or lack thereof, and current inventory.

I've always found the most valuable asset in pricing a property is familiarity with the proof--recent sales, and the competition--current listings.

In order to know your market you must see the product. It's good to read about it, look at photos and watch virtual tours, but if you want to remove the stress and the guess from establishing a spot on list price I'll share my secret with you---PREVIEW, PREVIEW, PREVIEW.

Some agents never preview and consider it a waste of time and gas. I disagree, and that's why Tuesdays are devoted to attending broker open houses with my clients', both buyers and sellers, needs clearly in mind. Previewing allows me to speak intelligently about a property to prospective buyers, and it allows me to offer a suggested listing price to prospective sellers with confidence. I can't imagine listing and selling without previewing the product.

Whether my clients accept my advice or not is another story post!

More Seller Tips from Norma!

Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

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Colleen Fischesser Northwest Property Shop

NextHome Experience - Chelan, WA

A Tradition of Trust in the Pacific NW since 1990!

What a great topic. It's hard to explain to the Zillow afficionados that there is so much more to it than the numbers. It's a process which involves so much more than number analysis (although that is a critical component). A seller who is willing to listen to an experienced agent on pricing will likely have a much more pleasant, successful outcome.

Oct 27, 2008 11:56 AM

Anthony Stokes-Pereira

Better Homes and Gardens Rand Realty - Nanuet, NY

Realtor

Hi Norma;

Great topic and super post, thank you for sharing. Good Luck!!!!!!!!!!!!!!!

Oct 27, 2008 12:06 PM

Norma Toering Broker for Palos Verdes and Beach Cities

Charlemagne International Properties - Rancho Palos Verdes, CA

Palos Verdes Luxury Homes in L.A.

Colleen - Zillow's numbers are generic at best and are only as current as the tax assessor's records.

Oct 27, 2008 12:38 PM

Anthony - Thank you, and it was on my mind since I was working on pricing a listing today.

Oct 27, 2008 12:41 PM

Konnie Mac McCarthy

MacNificent Properties, LLC - Cobb Island, MD

Broker/Owner - VA & MD "Time To Get A Move On!"

I think previewing is important in pricing a home, I have taken my unreasonable sellers out on occassion to see their competition...it is amazing the change when people can see what others are offering for less.

Oct 27, 2008 12:43 PM

Konnie - I've taken sellers to see the competition also. It's an effective way to establish value.

Oct 27, 2008 12:54 PM

Pricing a Property Involves Much More Than Simply Pulling a Number Out of a Hat

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