Who prices a house? Where does the final price come from? Market price is a wondering roaming atmospheric condition. The median price of an area is caused by multiple factors... Demand, interest rates, employment, wages. Yes this causes the swings in the market the highs and lows, but where does the market price for an individual home come from? It comes from the buyers and sellers, not the realtors, not the appraisers, not Zillow. Market price is simply where the buyer and seller meet. Often a buyer thinks a home is priced too high and a seller may think their home is priced too low. But if neither party comes to the table there is no "market."
Sellers often ask what do you think my home will sell for, ah, this is a tricky question often designed to discount the realtor. "These realtors do not know the real value of my home!" As I grow into my 16 years of experience I will say "I do not price homes." I don't because most sellers know what they want for their home and have been following their home on websites and watching the neighborhood. A savvy seller knows exactly where their house will sell at. I might know the exact price too but it is not my house to decide what price is going to make the seller happy. I have had the best market success from listening to the seller and pricing it where they want to. I would say at least 95% have gotten exactly what they wanted yet quite a few get more.
Buyers say "what do you think it's worth, this is a double edged sword for a realtor another gotcha." We give our opinion for "this dump you should only pay xyz..." Then the buyer makes a low offer and does not get the house. I have had many buyers do this on my listings only to have a buyer who wants the home step up and snatch it while the other buyer was deciding. For the question of worth I do send comparison sales with commentary, but I also counsel if you want the home it is best to offer your best offer to secure the home. In our market there is not shortage of buyers and they may see the value and move quicker. Ultimately my job is to help the buyer secure the home, the value of the home rests in the eye of the beholder.
There are certainly two beholders, the buyer and the seller and in the end it is where the buyer and seller see the value. This is where the home sells and the market price for this home has been established.Posted by Michele Replogle on