When selling your home, it is important to work with a licensed real estate broker to help you set an appropriate asking price. While sites like Zillow can provide you with an estimated market value, or a Zestimate®, that value is merely a starting point. It is not an appraisal, nor is it designed to be one, which means that it could be inaccurate. Similar models, called automated valuation modeling (AVM), take statistical data such as the sale prices of similar-sized homes in your area into account when providing a value for your home. This is only a piece of the pricing puzzle.
To price your home accurately requires qualitative data, not just quantitative information, such as: Getting a comparative market analysis (CMA) from your real estate agent OR Obtaining a home appraisal from a professional appraiser [a would-be seller does not need both] as each of these Professionals will visit the home to identify features that will add or subtract value from your home.
As the seller, you should have a good understanding of where your real estate broker came up with his or her proposed pricing plan. Hopefully, it’s based upon recently sold comparables, called “comps,” so that both the buyers and their appraiser can hang their hat on the reason for the pricing.
The real estate broker sitting in front of you should be able to explain clearly where their pricing recommendation comes from. Don’t just “take the highest priced broker” who might be trying to get your listing at any cost, hoping that you’ll eventually come down in price so they can then sell it. The broker who says your house will sell for the highest price may not be the best broker for you and may not get you the “highest & best” sale.
Working with a qualified, licensed real estate broker will give you the best opportunity to price your home fairly and in accordance with its true value in the current real estate marketplace. For more on this topic, click here or talk to your real estate agent.