The Challenges of Pricing Homes Today

In today's market, we probably hear the question "Why hasn't that house on XYZ street sold yet?" or the comment "Nothing is selling" several times a week from friends, neighbors, prospective purchasers, etc. More often than not, our answer is: "If it is priced right, it WILL sell! ". And while that statement is true in boom times, it holds even more truth today.

Pricing in today's market is complicated and the following graph should help shed light on why determining the correct list price can be challenging.

As you can see, the exponential growth in appreciation between 2000-2006 far surpasses the growth of previous decades.

The challenge for realtors is to bring homeowners back into reality. While we are seeing a market correction, we may still have a ways to go. And while current sales data is typically the largest factor in determining a list price -- other factors such as inventory supply, location, and property improvements are factored into the price as well. Remember each home is unique and holds many memories for most, so only an established full-time realtor can give you the education you need to make an informed decision in this ever-changing housing market.

We pride ourselves on our honesty and candor -and it is difficult to deliver bad news - and difficult to stomach, if you are the homeowner....however, we also realize that a homeowner cannot make a fully informed financial decsion about selling their home without a "real price".