Inman News has got some questions about pricing property:
The price is right, or is it?
Home sellers often look to real estate agents for guidance in how to price their homes. We’ve heard an earful about what you think about the value estimates (“zestimates”) generated at Zillow.com. What are some data sources/automated tools that agents and brokers use the most these days to help them to suggest the right price? How much does experience and market intuition come into play in recommending a price? Is the process more “high-touch” than high-tech? Do agents find it’s usually best to recommend a price that is different than the price you think a home will actually sell at? How far off are sellers these days in your market area when it comes to expected sale price vs. actual sale price? Comments please.
Based on experience in the property’s specific marketplace, it definitely takes more of a “high touch” than “high tech” approach. Although access to a large database of sold and current inventory is absolutely necessary (and only truly available to the big real estate companies in NYC, since there is no MLS), but what an agent does with the data is much more important.
Agents must have an in depth knowledge of current market conditions, viable marketing strategies, and a keen understanding of current buyer psychology. In today’s transitional market, there is no one better suited to price property than a sophisticated real estate professional with a significant amount of experience to draw from. That said, it is definitely not an exact science and even the best of us are off base sometimes.