According to most real estate experts, a property is 80-percent sold when it is priced properly. Personally, I think establishing the right price is one of the hardest tasks a REALTOR faces ... especially here in Star Valley.
Why? There are several reasons.
First, a very high number of agents do not even attempt to do a CMA (Comparable Market Analysis). When they look at the home, somewhere in the conversation they will ask the Owner, "What price are you thinking?" The agent then lists the property at that price!
Appraisers use three different methods to estimate the value of real estate. They are the income approach, the sales comparison approach and the cost approach. The sales comparison approach is considered the best method for appraising single-family homes.
The cost approach is used to appraise special purpose buildings such as churches, schools and public buildings. The income approach is used to estimate the market value of income producing properties such as office buildings, warehouses, apartment buildings and shopping centers. When adequate financial data for recent sales of similar income producing properties is unavailable, appraisers may utilize all three approaches.
REALTORS are not appraisers and we do not pretend to be. However a good REALTOR will use the same methodology an appraiser uses. One thing to keep in mind is that there is a big difference between an Appraiser's Value and Market Value. The real value of a property depends on the current market conditions where the property is located!
When it comes to pricing, an agent has to know the area and the little things that can make a big difference. Even in a slow market, a clean, well-maintained property, priced properly can make a significant difference in the price a Seller receives at closing.
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