How Not to Price Your Home

You know what’s going on in the real estate market, I know you know. It’s everywhere – the real estate grapevine is mind-boggling – you can’t possibly avoid it. But here’s the thing, the data might be accurate today but totally incorrect tomorrow. This is by far the most unpredictable market I’ve ever experienced, and I’ve been doing this a long time. Most regions of the U.S. are experiencing neither a Buyers Market nor a Sellers Market.

Historically, the most recent sales in your neighborhood (commonly called comps) are the ones that most closely mirror the current value of your home. There are, of course, additional factors like custom features, upgrades, and condition or overall appeal. These things, along with your personal agenda and desired timeline, are still significant. However – and this is a big however – appraisers are telling me that daily fluctuation in the economic environment is concerning even the most experienced in their profession. In other words, there’s been a big problem with comps.

Current listings, time on market, and pending sales are going to hold even more weight than ever before. Additionally, an upturn in canceled purchase contracts is creating a shortage of acceptable comparisons for some properties.

So what should you do? Well, here’s how NOT to price your home. Do not rely on the advice of your neighbor, or for that matter, Aunt Sally, your dentist’s receptionist, or even your Dad. Their information is very likely outdated, inaccurate, hearsay, or simply irrelevant. Do not take into consideration the price you paid for your home (may result in undervaluation), the cost of each and every improvement for the past 20 years (may result in overvaluation), or your taste in interior design (no one, and I mean no one, is going to have the exact same appreciation for that pool table in the dining room that you might have once loved).

If you’re considering selling your home or are unsure of its current value, give me a call. Like I said, I’ve been doing this for a long time, I’ve navigated every kind of real estate market, and provided hundreds of accurate home values. There’s no cost and no obligation. I’m always happy to provide an up-to-date value for your home, at least one that is accurate… today.