Surprisingly, pricing your home is one of my most difficult tasks. Proper pricing is more art than science; it requires that I consider current market conditions. In both an escalating and declining market recent sales are not as indicative of the current market. In an escalating market, I must carefully examine similar homes that recently opened escrow. Homes that sold quickly likely sold at the asking price or above, while the homes that languished on the market likely sold under the list price. In a declining market, I carefully examine active listings and those that recently expired or were canceled. What sold several months ago is not as telling as what didn’t sell last month and your current competition. To avoid home pricing mistakes, learn how not to price your home:
Online estimates are fun and usually accurate within 15%. The computer cannot consider your home’s condition, updates, and location versus those of recent similar sales. The computer can’t factor in a freeway close location. Or that your neighbor’s 20,000-square-foot lot was mostly hillside and unusable.
Assessor’s Value: Proposition 13 guarantees that property taxes be increased yearly based on the assessor’s minimal increase (not more than 2% annually) – not based on property appreciation. The assessor’s value has nothing to do with your home’s value.
Appraisals: Your home is worth what a buyer is willing to pay. An appraiser typically compares your home to similar homes which sold in the last 3-6 months. The appraiser is looking backward in time, while your Realtor® will be looking forward to determining what a willing buyer will pay for your home today, not six months ago.
When you want to list your home at the right price, a price that will be driven up rather than down, give me a call @ (818) 790-7325.
