Recently while inspecting a property to provide an opinion of value to the lender (BPO) the occupant made an interesting comment.
This gentleman was a very educated, refined, analytical accountant-type (is that stereotyping?). He was aware of how many houses were on the market in Brevard County Florida. He also knew how many short sales and bank owned properties were on the market. He also appeared very knowledgeable and conversant on the state of the economy.
One remark he made really got me to thinking. He made the comment that trying to assign a value could be a challenge in this market.
I have worked with buyers and sellers who have resisted the hard data, scientific approach to valuing a property. Real estate agents must place an emphasis on what is on the market and selling when providing a price analysis. I believe lenders place a greater emphasis on what has just sold as well!
Pricing a property, whether buyer or seller, requires one take into account the three most valued considerations
- condition and
- competition (i.e.market).
If you are looking to buy or sell I recommend you take a look at the three closest similar properties that have recently sold (within 4 weeks, if possible) as well as the three closest active for sale properties. [It is very important that these properties be similar in size, age, condition, construction.] This not scientific approach but rather a practical approach!
Pricing is not a matter of rocket science but likewise its not an emotional
Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, serving buyers and sellers in the Rockledge, Suntree and Viera areas of Florida's Space Coast. Email me at firstname.lastname@example.org or call me directly at 321-693-3850.