A similar home will probably be a home that was built around the same time and is the same or similar style and has the same number of beds, baths, and garage stalls. That explanation is a bit simplistic. We actually use a kind of fuzzy logic based on experience and knowledge of the area. So far there isn’t any software or web site that can replicate what an experienced real estate agent can do.
Pricing is important. Setting the price too high often leads to a lower sale price as the home sits on the market longer. For some reason, buyers avoid overpriced homes rather than offering less than the asking price.
Underpricing is rare but when it happens multiple offers bid the price up if the home is on the market long enough to get more than one offer.
Pricing isn’t easy and owners can’t always be objective. Sometimes the features the owner believes will bring top dollar actually lower the value.
We are still in a strong seller’s market in St. Paul. Homes that are priced correctly often sell quickly and sometimes with multiple offers.
Most homes are going to get an appraisal too but that is done by the buyer’s lender after the seller has accepted the offer. The purpose of the appraisal is to help the lender decide if the value of the home is at least high enough so that it can be used as collateral to cover the loan.
Pricing a home isn’t an exact science. If it were my job wouldn’t be nearly as much fun.