Most of my clients in Plymouth and Cape Cod involved in home sales will tell you I always speak to them about home valuations, assessments and tax rates. More for education and to clarify how they all work together, or at least should.

    Homes for sale

With the advent of the Internet it is now possible for a buyer or seller in today’s competitive market to easily obtain home information in detail. This includes:

    – Original sale price, mortgage amounts and any refinancing
    – Numerous sites offer comparable sales data and home valuations, price per sq.ft.
    – Public records include new building permits issued with any improvements/additions

Savvy buyers and sellers know all about a home and its potential market price point before they ever visit. Or they think they do. And if the price/value of a listed home is out of sync with buyer data – a seller may never see them or have requested visits to view the property. They will simply move on to other properties that match their data.

housing data But is all data online accurate? NO. Should you talk to a local REALTOR®? The answer is YES. We have learned it is better to embrace this flow of data and help our clients interpret what they read. A conversation on automated valuation models and what constitutes a great CMA will go a long way to helping a client understand what to look for and how to compare apples to apples.

I find a lot of confusion in the market as clients read about CMA’s, BPO’s, Appraisals, Valuations, and AVMs. We all know the companies pushing these out in the market. Typically the data are taken from an MLS and one hopes they update frequently. We know better.

A few years ago I developed a micro-pricing strategy as a guide for home sellers. Briefly it’s all about how to price a property based on key local criteria that automation simply can’t get. Housing markets are dynamic, changing weekly. Clients would be well served by being shown how to look at a home on a Micro level:

    – Pending and Sold homes within the neighborhood, sold recently, within ½ -1 mile
    – Houses most similar to yours
    – Overall price range of the neighborhood and then price/value of all competing homes
    – Upgrades vs. maintenance that will add value to the house. Remember improvements generally are valued at 40%-80% of cost to install and hopefully improvements buyers want
    – Unique differences in the house that can affect pricing and even marketing the house

Once you can pull this together with the right pricing you’re ready to get the house on market. Interestingly, if you done a good job of identifying the key details of a house and then price it right, buyers will see the value and it will sell quickly with little or no price reductions. It is more likely you will have multiple offers.

It's fair to share...Share on FacebookShare on Google+Share on RedditShare on LinkedInTweet about this on TwitterPin on PinterestEmail this to someone