Hi,

I am very new to this forum. Found it yesterday and just joined today!

What would you say is the best strategy for pricing in this changing market? I am coming back into real estate after being out for a bit due to personal reasons.

Use comps from the last six months? Three months? Add on for negotiation room?

I am looking for the best way to fine tune my strategy and price my soon-to-come listings well from the start.

I am glad to be here, thanks for any advice!

It really depends on the local market you are in. And it also depends on what the property is that you are selling. I always try and use the newest comps, but quite often they aren't there. So you use what you can. Also if you don't find good comps you can always use finished sqft averages to get a list or sale price. As to pricing. In my area all offers are always lower then the list price. And buyers usually shy away from signing a full priced counter. Depending on the property of course. Buyers feel they can get a deal so don't want to ever pay full list price. That said plan a little wiggle room in every list price. And if it doesn't show or sell use that wiggle room to lower the price without affecting the bottom line as much. And don't take overpriced listings. Just don't do it. Resist the temptation. You will spend your time arguing with your sellers and get discouraged at the same time. It was my new years resolution to not take any over priced listings.

Your area may be different from mine but as a general rule I try to bracket GLA +/- 20% (sometimes wider if it is difficult to find the comps) and lot size with somewhat larger limits (to avoid having land content being too much or too little of the total value). Proximity is highly location dependent; I don't get too concerned about extending proximity as long as it doesn't get into a significantly different market.

With regard to your question about how old a sale on closed comps I can rarely find enough, that meet the other criteria too, without going back at least 6 months. Sometimes I have to back a whole year. Market trend will give you the answer to going a little higher or a little lower than the comps indicate for your pricing. Remember that you are along the time line between what has already happened (the comp history) and the future (when the subject ultimately is sold), therefore you need to take in to account upward vs. downward market trends.

Your client will often give you the parameters they want to stay within; you may need to expand but if you do explain it in the comments field.

I think she is talking about regular CMAs not for BPOs. There is a difference to doing a CMA for a private seller then a BPO for a company. You can use logic and understanding of the market for a private seller. For a BPO you have to do it as the company wants. Even if it's not acurate. So Top Agent it really depends one what entity you are gathering your comps for.

I also like to show my sellers what else is on the market for the price I suggest to sell their house for. It will show them the competition for their home. I just do a search on the mls for a price range around their house and show them whatever comes up. No matter what the comp is.