There are 3 basics places to get pricing on a home, websites
The least accurate is Website estimates
A good indicator is the local tax assessment
The most accurate is the Casey Samson pricing model
Website estimates mislead buyers & sellers
On a sample home in Vienna, Virginia here are the website estimates:
- Realtor Property Resource: $1.1M
- Home Snap: $1.104M
- Trulia: $905,000
- Zillow: $919,000
Estimates/Zestimates are national algorythms that can vary 20% or more on a single property.
This is a huge contributing factor why sellers and Realtors over price homes. 40% of the homes in Northern Virginia withdraw unsold.
Tax assessors are a consistent source in determining the value of a home
Tax assessors give us a "ballpark" price of a home. Historically homes within a one mile radius with similar age and size will sell at a consistent percentage of assessment i.e. 108% - 110% of assessed value. There are other mitigating factors that must be considered, however, when determining the value of a home.
Casey Samson's pricing model has a proven track record of putting an accurate value on home as evidence by his portfolio of selling at 100.1% of list price.
Step Four – Confirm PPSF using growth charts.
Growth charts show 10 year pricing cycle.
Growth Charts also confirm the history of the PPSF.
Step Five – Evaluate Market Conditions.
- How many active competitors do you have?
- How many competitors are under contract?
- Home many competitors sold in the last 120 days?
- What is the average days on market for this neighborhood?
- What is the average price of homes within one mile?
- What type of leverage does the seller have?
Answering these questions determines the buyers or sellers market and dictates leverage.
Step Six – Apply Thresholds
Buyers search for homes based on a minimum and maximum price. Example searches:
Buyers search $750,000-$800,000 so you would not list a home at $810,000. You would list at $799,000 to compete against an weaker price group.
Buyer search $500,000-$550,000 so you would not list at $555,000. You would list at $550,000
Our goal is to produce multiple contracts which allows our sellers maximum leverage in negotiating contracts and inspection releases.