On yesterday's PressReal blog there was a great post called "There's a difference between asking price and value" where the author says: "They just don’t seem to understand what you and I take for granted. Just because I put a price tag of $1 million on my home doesn’t make it worth $1 million. It’s not worth $300 per foot or even $100 per foot. It’s really worth exactly what someone will pay for it. Not a penny less, not a penny more."
PressReal was going to do a follow-up piece on the "Right Way" to price a home but Greg Swann's blog at Bloodhound Blog beat him to it. In Greg's piece entitled “Ask The Broker: Where can you get the most accurate real estate estimates” he lists the ways real estate professionals place value.
Following are a “reader’s digest” version of his suggestions in order of accuracy:
- An appraisal by a competent appraiser, with substantial experience in the neighborhood in question.
- A Broker’s Price Opinion (BPO) with the same stipulations of competency.
- A Competitive Market Analysis (CMA) done by a Realtor.
- An Automated Valuation Model (AVM -such as Zillow).
In closing his piece, he talks about when it’s appropriate to use each. This isn’t anything you don’t already know, but it’s tightly written, and well worth the review. I suggest you take the time to look through it. Click here for the complete article.
Recent Comments